7 Stages of Making Money in the Crypto World (Check Which Stage You Are In)

Stage One: The Protective Period for New Investors. Buying in before a bull market guarantees profits, witnessing the allure of the crypto world, watching assets skyrocket, feeling happy every day. Eventually, you feel you didn't invest enough, borrow money to invest heavily, get stuck at the peak, and regardless of how much it rises, you don't think about selling. When the bear market ends, the profits turn into losses. Self-consolation leads you to decide to hold on, and at that moment, you understand 'value investing.'

Stage Two: After experiencing losses from holding on, you start studying trading techniques, can seize hot trends, buy and profit, but ultimately miss major market movements, earning only a little.

Stage Three: In-depth research and diligent study of techniques begin. You start to analyze bottom buying and peak selling, but the more you try to buy at the bottom, the lower it goes. You run out of chips and still see no signs of a bottom. You understand the methods of technical bottom buying.

Stage Four: Deepening your technical knowledge, you gain further understanding of how to select targets, but you lack capital management skills, which may lead to a black swan event, resulting in total loss.

Stage Five: Your mindset enters a cautious phase; you become fearful of coins, hesitant to make moves, and doubt all news. You start to research targets independently, cautiously buying, learning to observe market sentiment, beginning to understand the logic of market speculation and capital expectations, and you also learn about risk management.

Stage Six: Having shed the arrogance, you become humble and respect the market, no longer greedy. You believe the market is always right, and being able to take away a portion of profits is already a success. The ambition to earn A9 and A8 is gone; as long as you can earn, you are fine with A6 and A7.

Stage Seven: You can seize opportunities in market fear, identify crises amid FOMO (Fear of Missing Out) emotions, grasp market hotspots, and discern whether coin prices are high or low. You are neither greedy nor fearful about the market. You start to aim for small consistent profits rather than chasing big gains all at once, accumulating 3-5 times from major hotspots and 50% from smaller ones. You understand the importance of holding cash and the necessity of letting go. You enter only when there are significant opportunities and understand that the most important thing in life is to exit when necessary.