Profit opportunities in the cryptocurrency market always exist; however, earnings gained through knowledge are far more reliable and sustainable than the temporary gains brought by luck.
Looking back, the cryptocurrency market has experienced multiple rounds of bull and bear cycles. In 2017, Bitcoin once approached the $20,000 high, then fell sharply. From 2020 to 2021, due to institutional entry and the DeFi boom, Bitcoin surged again. These fluctuations fully demonstrate the characteristics of high risk and high return in the cryptocurrency market.
In the early days of the cryptocurrency market, retail speculation dominated, leading to extreme market volatility. In 2017, Bitcoin soared from $1,000 to nearly $20,000 in a short period, while ICO projects like EOS raised $4 billion in just five days. Many retail investors achieved significant wealth by blindly 'going all in.' The core characteristics of the market at that time were information asymmetry and low barriers to entry, with technical vulnerabilities and regulatory gaps giving rise to numerous myths of sudden wealth.
However, with traditional financial giants like BlackRock and Goldman Sachs entering the market, the fundamental logic of the cryptocurrency market has undergone a significant change. Institutions are heavily investing in blockchain infrastructure; for example, JPMorgan's quantum trading system can complete cross-chain arbitrage in 0.0001 seconds, while retail investors have no advantage against such algorithms. Data from 2025 shows that only 7.2% of investors are profitable, and 76% of investors underperform Bitcoin's growth; the market has transformed from a 'retail casino' to an 'institutional slaughterhouse.'
From a global regulatory perspective:
In the United States, the SEC passed the (Cryptocurrency Asset Transparency Act), requiring projects to disclose the top 100 holding addresses. 93% of the liquidity of new tokens is controlled by the top 10 wallets, significantly reducing the room for market manipulation. At the same time, the Trump administration promoted crypto-friendly policies, planning to establish a national Bitcoin reserve, which stimulated institutional allocation.
In Asia, Hong Kong has launched a licensed exchange system, with platforms like Futu Securities having daily trading volumes between $10 million and $20 million, but only 100,000 active users, indicating that the market is still in its early stages. Singapore has released a regulatory framework for stablecoins to promote industry compliance.
As compliance requirements continue to rise, domestic investors must participate in trading through licensed platforms in Hong Kong, facing identity verification, fund segregation, and other requirements, increasing trading costs by 20%-30%.
Currently, the main compliant participation channels include:
Licensed exchanges in Hong Kong: Platforms like HashKey and OSL provide spot trading for Bitcoin and Ethereum, and compliant investors can deposit funds through bank or broker accounts, with daily trading volumes exceeding HKD 50 billion.
ETF and funds: Bitcoin spot ETFs saw a net inflow of $3.1 billion in one week, and Grayscale Bitcoin Trust offers an annualized return of 8.3%, making it a popular choice for institutional allocation.
DeFi liquidity mining: Choose audited protocols to earn an annualized return of 5%-15% by staking tokens, but be cautious of impermanent loss and smart contract risks.
In terms of investment allocation:
Diversified allocation: Invest 70% of funds in mainstream coins like Bitcoin and Ethereum, allocate 20% in DeFi, RWA, and other potential sectors, and 10% in stablecoins to hedge against risks.
Quantitative trading: Use AI algorithms to capture cross-chain arbitrage opportunities, such as integrating OTC order flows through Arrakis Finance to reduce MEV losses.
Long-term holding + regular investment: Bitcoin's halving cycle every four years remains attractive; using a 'regular and fixed amount' strategy can effectively smooth out the impact of market volatility.
Risk control and application tools are also crucial:
Stop-loss mechanism: Set a hard stop-loss line at 20%, for example, trigger liquidation if Bitcoin falls below $101,000 to avoid deep losses.
On-chain monitoring: Use tools like Nansen and Glassnode to track whale movements; if you find that the top 10 wallets of a certain DeFi protocol are selling off significantly, you should exit immediately.
Cold wallet storage: Transfer cryptocurrencies held for the long term into hardware wallets to avoid risks associated with exchange custody.
Today, the logic of making a profit in the cryptocurrency market has shifted from 'luck-driven' to 'knowledge-driven.' Investors should participate compliantly through licensed platforms in Hong Kong, learn about on-chain data analysis, quantitative strategies, and other professional knowledge to narrow the information gap with institutions, adopting a '80% asset preservation + 20% asset risk-taking' barbell strategy to achieve long-term appreciation during market fluctuations. Whenever possible, enhancing knowledge is the most reliable way to profit in the cryptocurrency market.
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