7 Stages of Making Money in Cryptocurrency (Check Which Stage You Are At)
First Stage: The Protection Period for New Investors. Buying in a bull market means making money, experiencing the charm of cryptocurrency, watching your assets skyrocket, feeling happy every day. Eventually, you feel you didn't buy enough, borrow money to invest heavily, and end up buying at the peak. No matter how much it rises, you won't think about selling. When the bear market ends, the profits vanish, turning into losses. You console yourself and decide to hold on, and in that moment, you understand "value investing."
Second Stage: After suffering losses from holding on, you start researching trading techniques, can catch hot trends, profit from buying, and run after making gains, only to miss out on major market movements, earning only small amounts.
Third Stage: In-depth research, studying techniques, trying to buy at the bottom and sell at the top, but the more you try to buy low, the lower it goes. You run out of chips without seeing a bottom, and you understand the method of technical bottom fishing.
Fourth Stage: Deepening your understanding of techniques, knowing how to select targets, but lacking in capital management. You might encounter a black swan event and lose everything.
Fifth Stage: Your mindset shifts to a conservative phase. You become fearful of cryptocurrencies, hesitate to take action, doubt all news, begin to research targets independently, buy cautiously, learn to observe market sentiment, understand the logic of market speculation and capital expectations, and also learn risk management.
Sixth Stage: Shedding arrogance, becoming humble, respecting the market, no longer greedy, believing that the market is always right. Being able to take a portion of profits is already a success. No longer ambitious to earn A9A8, being satisfied with profits and not minding A6A7.
Seventh Stage: Able to seize opportunities during market fear, recognizing crises in FOMO (Fear of Missing Out) emotions, catching market hotspots, understanding whether currency prices are high or low, not being greedy or fearful of the market. You start to seek small profits instead of aiming for big money all at once, accumulating 3-5 times from major hotspots and 50% from minor hotspots. You understand the importance of being in cash and knowing when to let go. You only enter when there are significant opportunities and understand the importance of knowing when to exit life.