$BTC Making money and investing: An analysis of the essence
In the cryptocurrency world, which is full of opportunities and challenges, many people often confuse making money with investing. However, they are actually fundamentally different. Making money means obtaining income through various means, which focuses more on current actions and benefits; while investing is to achieve asset appreciation, focusing on future returns, and requires considering more factors, such as risk, benefits, time, etc.
Kazuo Inamori once said that the essence of making money is the difference between information, cognition, execution and competition. This view profoundly reveals the core elements of making money. In today's era of information explosion, the ability to obtain and use information is crucial. Whoever can grasp valuable information faster and more accurately will be able to seize the opportunity on the road to making money. The level of cognition determines our ability to understand and judge information, as well as our ability to grasp opportunities. For the same information, people at different cognitive levels may have completely different interpretations and actions, resulting in different results.
Execution ability is the key to turning ideas into practical actions. No matter how sophisticated our plans and strategies are, if we lack strong execution ability, everything is just talk. In the fiercely competitive market environment, only with efficient execution ability can we quickly seize opportunities and gain competitive advantages. Competition is the driving force that drives us to make continuous progress and improvement. In the competition with others, we can discover our own shortcomings and learn from others' strengths, so as to continuously optimize our own money-making methods and strategies.
Applying this concept to ourselves, we need to conduct a comprehensive review of ourselves. What resources and capabilities do we have? In what areas do we have in-depth understanding and cognition? What information and skills do we not know yet but need to master? More importantly, we must have strong enough execution and action, be brave enough to take the first step, and persevere. Only in this way can we have the opportunity to stand out in the fierce competition and earn our own wealth.
Multiple ways to make money in the cryptocurrency world
1. Earning money from human nature
In the cryptocurrency world, which is full of temptations and opportunities, it is a common strategy to make money by taking advantage of human weaknesses. People often have a strong desire to make money, and this psychology is cleverly used to derive a variety of profit-making methods.
Many apps in the cryptocurrency world offer a rebate mechanism, which is a typical example of making money by taking advantage of human nature. We can seize people's desire to make money, promote these apps to people inside and outside the circle, and tell them that they can earn money by promoting these apps, thereby attracting them to work for us. We can even charge a certain fee, after all, we provide such a seemingly profitable channel. As for whether we can actually make money in the end, that is another matter, but at least we have taken advantage of this characteristic of human nature and successfully attracted others to participate.
Leading orders is also a common way to make money by taking advantage of human nature. In the cryptocurrency circle, many people are eager to get investment guidance and hope to follow the so-called "experts" to gain profits. Some people seize this mentality and attract investors to follow their operations by exaggerating their own abilities and boasting about past success stories. They even copy other people's analysis and opinions to increase their credibility. However, this kind of leading order behavior is extremely risky, because the market uncertainty is extremely high, and the lead order person cannot guarantee the investor's profit.
Take a certain KOL paid order-leading group as an example. The group claims to be able to lead investors to obtain high returns, attracting many investors to join. However, in reality, many investors not only did not make money after following the order-leading operation, but suffered huge losses. This fully illustrates the risk of order-leading behavior, and also reminds us that when facing such temptations, we must keep a clear mind and not easily believe those overly beautiful promises.
Money-grabbing is also a way to make money by taking advantage of human nature. Some projects in the cryptocurrency circle will attract users to participate by issuing free tokens or providing other benefits, which is the so-called "airdrop". Some people will take advantage of this opportunity to organize others to participate in money-grabbing activities and gain benefits from it. However, money-grabbing is not without risks. Some projects may involve fraud. Users may face risks such as personal information leakage and asset loss when participating in money-grabbing activities.
2. Earning money from physical effort, time and wisdom
In addition to making money by exploiting human nature, in the cryptocurrency world, we can also gain profits by paying physical strength, time and wisdom.
Becoming a KOL is an effective way to make money using your own abilities. In the information-rich field of the cryptocurrency world, people are eager to obtain valuable information and professional analysis. If we can spend time and energy to deeply study various knowledge in the cryptocurrency world and share valuable posts, we may attract a large number of fans. As the number of fans increases, our influence will gradually expand, so that we can realize monetization in a variety of ways, such as brand cooperation, paid consulting, and offline events.
Take a certain cryptocurrency KOL as an example. He was just an ordinary cryptocurrency enthusiast at first. By sharing his market analysis and investment experience on social media, he attracted more and more fans. As the number of fans continued to grow, he began to cooperate with some project parties to provide them with publicity and promotion services. He also opened a paid consulting service to provide investors with personalized investment advice. Today, he has become an influential figure in the cryptocurrency circle and has achieved wealth growth through his own efforts.
Promoting apps and getting rebates is also a common way to make money. We can cooperate with some apps in the cryptocurrency circle to promote their products and get corresponding rebates based on the promotion results. This method requires us to have certain promotion capabilities and personal connections. Through effective promotion, we can attract more users to use the app and get more rebate income.
For example, one of my fans specializes in promoting Bybit's U-card. He successfully attracted a large number of users to use Bybit's U-card by posting promotional information on social media and communicating with potential users. His monthly commission income is as high as $1,000. This fully demonstrates that promoting app commissions is a viable way to make money. As long as we can find the right promotion channels and methods, we may get considerable benefits.
In addition, we can also use our expertise and experience to make money by doing live broadcasts of the cryptocurrency circle and providing paid consulting services. In the live broadcasts of the cryptocurrency circle, we can share market dynamics in real time, analyze market trends, interact with the audience, and answer their questions. Through live broadcasts, we can not only attract fans' attention, but also earn income by accepting tips from the audience and cooperating with brands.
Providing paid consulting services is to provide professional advice and guidance to investors who need more in-depth and personalized services. We can formulate investment strategies and analyze project risks for investors based on our professional fields and experience, so as to help them make more informed investment decisions. Of course, providing paid consulting services requires us to have solid professional knowledge and rich practical experience. Only in this way can we win the trust and recognition of investors.
3. Earn money from resource integration
In the cryptocurrency world, a field full of entrepreneurial opportunities, making money from resource integration is also an important way to make profits.
There are endless entrepreneurial projects in the cryptocurrency circle, and these projects often require the support of various resources, such as funds, technology, talents, market channels, etc. We can use our own personal resources and market insights to match these projects, optimize resource allocation, and thus gain benefits from them.
Finding good products for investors is a common way to integrate resources. Many investors have a lot of money, but they lack in-depth understanding of cryptocurrency projects and find it difficult to find potential investment projects. We can screen out some promising projects through market research and analysis and recommend them to investors. If investors are interested in the projects we recommend and eventually invest in them, we can get a certain commission or return from them.
Finding investment for good products is also an important part of resource integration. Some excellent cryptocurrency projects have innovative technologies and concepts, but they cannot develop smoothly due to lack of financial support. We can use our personal connections to help these projects establish connections with investors and facilitate cooperation between the two parties. In this process, we can not only solve funding problems for the project parties, but also provide investors with high-quality investment opportunities, while also obtaining corresponding benefits ourselves.
Making products yourself is also a way to make money in the cryptocurrency circle. If we have certain technical strength and innovation capabilities, we can develop our own cryptocurrency products, such as digital currency wallets, trading platforms, blockchain applications, etc. By creating competitive products, we can attract users to use them and achieve profitability.
In the process of making products, we need to integrate various resources, including technical teams, operation teams, marketing teams, etc. Only by effectively integrating these resources can we ensure the successful development and promotion of products. For example, a team developed an innovative digital currency wallet. By integrating professional technical talents, excellent operation teams and extensive marketing channels, the wallet quickly gained recognition and love from users, bringing rich benefits to the team.
4. Making money from information asymmetry
Information asymmetry is a common phenomenon in the cryptocurrency world, and it also provides us with opportunities to make money.
Many people outside the circle know little about how the cryptocurrency world works and how to invest. They are eager to learn about this field, but don't know where to start. We can take advantage of this information gap to lead people outside the circle to learn about the cryptocurrency world and gain benefits through rebates and other means.
We can offer online courses or offline training to teach people outside the circle the basic knowledge of the cryptocurrency circle, investment skills and risk prevention methods. In the course, we can recommend some reliable trading platforms and investment projects, and cooperate with these platforms or projects to bring them new users, so as to obtain corresponding rebates.
For example, we can cooperate with a digital currency exchange and recommend new users to it. When the users we recommend register and trade on the exchange, we can get a certain percentage of the rebate. In this way, we can not only help people outside the circle understand the cryptocurrency circle, but also realize our own profits.
In addition, we can also make money by moving information within the circle. In the cryptocurrency circle, there are many professional communities and forums that contain a lot of valuable information, such as project analysis, market trends, investment strategies, etc. We can join these communities, obtain the information, and share it with people outside the circle after sorting and processing it. If the information we share is helpful to others, they may pay us a certain fee or give us other forms of rewards.
We can build a paid information sharing platform, organize the information we obtain from the circle into high-quality reports or analysis articles, and provide them to paying users. These users can obtain the latest and most valuable information in the circle through our platform, so as to make more informed investment decisions. We can make profits by charging users fees.
A comprehensive review of how to play in the cryptocurrency circle
There are many ways to play in the cryptocurrency circle, which can be mainly divided into three types: on-chain, secondary market, and mixed circle and mixed resources.
In the on-chain gameplay, some people focus on participating in on-chain projects, from early exploration to in-depth practice, and constantly tapping into their potential. They delve into blockchain technology, participate in the development and promotion of decentralized applications, contribute their own strength to the development of projects, and obtain corresponding benefits from them. For example, some people have obtained rich returns in decentralized finance (DeFi) projects such as lending, trading, and liquidity mining by using their own funds and technical capabilities. Others have participated in non-fungible token (NFT) projects and achieved wealth growth by creating and trading NFT artworks. These people continue to explore and innovate in on-chain gameplay, and gradually accumulate experience and wealth.
The secondary market is a trading place for crypto assets, providing investors with the opportunity to buy and sell at any time. Here, investors analyze market conditions, study project fundamentals and technical indicators, and conduct buying and selling operations to obtain price difference profits. Some people have become professional order-carrying traders with their keen insight into the market and rich trading experience. They help other investors trade by providing trading signals and investment advice, and charge a certain fee. In the secondary market, investors need to pay close attention to market dynamics and master various trading skills to gain profits in the fierce competition.
Mixing circles and resources, that is, becoming a KOL, is also a common way of playing in the cryptocurrency circle. KOLs rely on their influence and personal connections in the cryptocurrency circle to make profits by sharing valuable content, organizing offline activities, and participating in project promotion. They not only provide valuable information and advice to investors, but also build their own brands and reputations in the cryptocurrency circle. For example, some KOLs have attracted a large number of fans by holding online lectures and writing in-depth analysis articles. They also cooperate with project parties to promote and publicize the projects and gain benefits from them. In the process of mixing circles and resources, KOLs need to continuously improve their professional capabilities and influence in order to gain a foothold in the cryptocurrency circle.
The cryptocurrency market provides us with numerous opportunities and ways to make money. However, we must be aware that the cryptocurrency market is full of uncertainty and risks, and no way of playing is absolutely safe and reliable. When participating in cryptocurrency investment and money-making activities, we must be cautious, fully understand the relevant knowledge and risks, and formulate reasonable investment strategies. At the same time, we must continue to learn and improve our abilities, enhance our understanding and judgment of the market, and deal with various complex situations. Only in this way can we seize opportunities in the cryptocurrency market and achieve our wealth goals, rather than becoming harvested leeks.
Investment strategy: diversification and risk control
1. Diversification of investments
In cryptocurrency investment, diversification is a crucial strategy. It is like sowing different kinds of seeds in a vast forest. Even if a certain area suffers a disaster, other seeds may still thrive and bring rewards to investors. The core of this strategy is not to concentrate all funds in one project or one digital currency, but to spread funds across multiple different assets, so as to reduce the impact of the volatility of a single asset on the overall investment portfolio.
Take Bitcoin fixed investment as an example. It is a common and effective way of diversified investment. As the leader of digital currencies, Bitcoin has high market recognition and stability. By investing in Bitcoin regularly and in fixed amounts, investors can buy at different price points, thereby effectively spreading the cost and reducing the risk caused by market price fluctuations.
Suppose we invest a fixed amount of money every month to buy Bitcoin. When the market price is high, we buy relatively fewer Bitcoins; when the market price is low, the same investment amount can buy more Bitcoins. Over time, this fixed investment method can make our average cost more reasonable and avoid major losses caused by buying at a high price all at once. For example, in the past few years, the price of Bitcoin has experienced many large fluctuations. If investors adopt a fixed investment strategy, they can seize the opportunity to buy more when the price falls, thereby obtaining higher returns when the price rises.
Reasonable asset allocation is also an important part of diversification. We can allocate funds to different types of digital currencies. In addition to Bitcoin, we can also consider other potential mainstream digital currencies such as Ethereum. As a pioneer of smart contracts, Ethereum plays an important role in the field of blockchain application development. Its ecosystem continues to grow and develop, attracting many developers and projects. Investing in Ethereum can not only share the dividends brought by its technological innovation, but also further diversify investment risks.
In addition, we can also pay attention to some emerging digital currency projects, but be careful to control the investment ratio. These emerging projects often have high growth potential, but are also accompanied by greater uncertainty and risks. By rationally allocating different types of digital currencies, we can effectively balance risks while pursuing returns.
In addition to digital currencies, we can also invest part of our funds in other asset classes, such as stocks, bonds, and funds in traditional financial markets. These assets have a low correlation with digital currencies, and their performance may not be synchronized with digital currencies when the market fluctuates, thereby playing a role in diversifying risks. For example, when the economic situation is unstable, bonds often have good hedging properties and can provide a certain degree of stability for the investment portfolio; while the stock market may perform well when the economy recovers and bring rich returns to investors. By rationally allocating digital currencies and traditional financial assets, we can build a more diversified and robust investment portfolio.
2. Risk Control
In the cryptocurrency investment field, which is full of uncertainty, risk control is like the helmsman of a ship sailing in a rough sea, which determines the direction and success of investment. The key to risk control lies in the keen insight into various potential risks and timely response to ensure the safety and stable appreciation of investment assets.
Paying attention to current political affairs is an important part of risk control. The cryptocurrency market does not exist in isolation, it is closely linked to the global political and economic situation. Changes in current political affairs often have a significant impact on the cryptocurrency market, such as government regulatory policy adjustments, geopolitical conflicts, and fluctuations in macroeconomic data, which may all trigger drastic fluctuations in the cryptocurrency market.
Take the example of a country's government suddenly strengthening its regulation of digital currencies. This policy change may cause the market's confidence in digital currencies to be frustrated, and investors may sell off their digital currencies, causing prices to plummet. For another example, geopolitical conflicts may lead to increased risk aversion in the market, and funds may flow to traditional safe-haven assets, causing capital outflows from the digital currency market and falling prices. Therefore, we must always pay attention to the dynamics of current political affairs, keep abreast of policy changes and the development of the international situation, so as to be prepared in advance.
Investing in gold and Nasdaq index funds is an effective way to diversify and hedge risks. As a traditional safe-haven asset, gold can often play its role in preserving and increasing value when the global economy is unstable, geopolitical conflicts intensify, or major market uncertainties arise. When the cryptocurrency market encounters major risks, such as price plunges and regulatory storms, gold prices may rise, thereby providing a certain buffer and protection for the investment portfolio.
The Nasdaq Index Fund represents the overall performance of the technology industry. The technology industry is an important driving force for global economic development and has high growth and innovation capabilities. Investing in the Nasdaq Index Fund allows us to share the dividends brought by the development of the technology industry, while also complementing our investment in the cryptocurrency industry. Because the cryptocurrency industry is somewhat correlated with the technology industry, but not completely synchronized, when the cryptocurrency market performs poorly, the Nasdaq Index Fund may perform differently, thereby reducing the overall risk of the investment portfolio.
When a big crash is expected, timely liquidation is a decisive and necessary risk control measure. In investment, we cannot be lucky. When the market situation changes significantly and the risk increases significantly, we must have the courage and determination to sell the assets in hand in time to avoid further losses. Although liquidation may mean giving up possible future gains, in the face of risks, keeping the principal is the most important thing. For example, at the beginning of the outbreak of the new crown epidemic in 2020, the cryptocurrency market showed a sharp downward trend. Many investors liquidated their positions in time to avoid a sharp shrinkage of their assets. Those investors who hesitated and did not liquidate their positions in time suffered huge losses.
Summary and Outlook
The cryptocurrency world, an emerging field full of opportunities and challenges, is changing people's wealth concepts and investment methods in an unprecedented manner. In this rapidly developing industry, there are many ways to make money, and investment strategies vary from person to person. However, no matter what method is used, we need to keep a clear head, look at the market rationally, and continue to learn and accumulate experience.
Through the discussion of the money-making methods and investment points in the cryptocurrency circle, we understand that making money from humanity, making money from physical strength and time, making money from wisdom, making money from resource integration, and making money from information asymmetry are all feasible ways to make money. But each way is accompanied by risks and requires us to be cautious. In terms of investment, diversification is an effective strategy to reduce risks. Don't put all your eggs in one basket. Through reasonable asset allocation, you can achieve a balance between risk and return. At the same time, paying close attention to current political affairs, keeping abreast of market trends, and doing a good job of risk control are also the keys to successful investment.
The potential of the cryptocurrency industry should not be underestimated. From now on, it still has huge room for development and growth potential. With the continuous innovation and application of blockchain technology, the cryptocurrency industry will gradually penetrate into various fields, bringing more convenience and opportunities to people's lives. In the future, people who work in web2 may really have a part-time job in web3. This is not a fantasy, but a trend of the times.
Therefore, I encourage every reader to act bravely. If you are interested in the cryptocurrency world, you might as well learn more about it, learn relevant knowledge, and explore money-making opportunities that suit you. In the process, you may encounter difficulties and setbacks, but don't give up easily. Remember, success often belongs to those who are prepared, courageous, and persistent.
Of course, you must remain rational and cautious in the process of action. Don't be blinded by temporary interests, don't blindly follow the trend, and make wise decisions based on your actual situation and risk tolerance. At the same time, you must continue to learn and improve your abilities, enhance your understanding and judgment of the market, so as to better respond to market changes.
In the cryptocurrency world, a stage full of infinite possibilities, I hope you can find your own opportunities to achieve wealth growth and the value of life. Let us look forward to a better future for the cryptocurrency world and witness the wealth miracle of this era together. #CPI数据来袭
