Only suitable for brave individuals who dare to face extremely high risks and thresholds with rational cognition!
Since the birth of the cryptocurrency sector, there have indeed been a few cases of wealth explosion. For instance, in 2011, the 'God Fish' who got involved with Bitcoin achieved financial freedom through mining and founding mining pools, while early investors who held Bitcoin at low prices also received hundreds or even thousands of times returns due to long-term holding. The existence of such cases has labeled the sector as a 'wealth creation myth'. This is an undeniable fact, but
1 Market volatility and traps targeted at speculators: Cryptocurrency prices fluctuate dramatically, with Bitcoin's daily price changes exceeding 10% not being uncommon. For instance, after the Coinbase+ hacking incident was exposed in 2025, Bitcoin's price rose against the trend by 2.3%, showcasing 'crisis speculation' characteristics. Such irrational fluctuations can easily lead investors to chase prices and panic sell due to emotional loss of control, ultimately becoming 'non-starters'. Even more serious is that emerging assets like Meme coins are often manipulated; for example, although Trump Coin surged 290%, it lacks real value support and carries extremely high risks.
2 Information asymmetry and cognitive gaps: Institutional investors occupy information high grounds due to their professional tools and resource advantages, while ordinary people are easily misled by false information. The statements in Douyin videos claiming 'buying coins can lead to financial freedom' are traps designed to lure retail investors. Investors lacking independent thinking skills often become victims of market manipulation.
3 Insufficient funds and risk resistance: Most ordinary people have limited investable funds and must bear rigid expenses such as mortgage payments and living costs. Even if invested assets double, achieving financial freedom is still difficult and may force them to cut losses due to short-term volatility. In contrast, institutional investors can diversify risks through quantitative strategies and derivatives hedging, whereas ordinary people lack such tools and capital.
4 Professional knowledge and time costs: Investing in cryptocurrencies requires mastery of knowledge across multiple fields, such as blockchain technology, market analysis, and risk management. Understanding the underlying logic of DeFi protocols, identifying vulnerabilities in smart contracts, and analyzing on-chain data all require long-term study. Ordinary people often rely on fragmented information due to limited time and energy, leading to decision-making errors.
However, this does not mean that ordinary people cannot participate in the cryptocurrency sector.
Ordinary individuals need to be aware of many things when participating in the market.
1 Long-term small investment mindset
Invest no more than 5% of total assets in cryptocurrencies, focusing mainly on leading assets like Bitcoin and Ethereum, and avoid participating in high-risk altcoins. The Central Bank of Russia recognizes Bitcoin as a long-term asset allocation, with a cumulative return of 121.3% since 2022, but it entails a short-term volatility of 18.6%. The speculative mindset of seeking overnight wealth often falls into traps.
2 Tools assistance and information filtering
Use market analysis tools like TradingView to analyze price trends, monitor on-chain capital flow through Nansen, and subscribe to research reports from compliant platforms like Coinbase to reduce information asymmetry. At the same time, be wary of 'insider information' and 'high yield promises', such as the claims of '215% annualized return on meme coin staking' on platforms like Douyin, which are essentially variants of Ponzi schemes. Momentary greed is the root cause of total loss!
3 Enhance external capabilities and cash flow
Ordinary people should prioritize increasing their primary income, treating cryptocurrency investment as a method of asset allocation after ensuring ample cash flow. Once monthly salaries increase significantly, a strategy of regularly investing in Bitcoin will be more resilient to risks, and the investment itself will no longer be speculation, but part of asset diversification. Self-improvement should always be the top priority.
The cryptocurrency sector indeed offers a possibility for a few to achieve financial freedom, but success relies on multiple factors such as early entry, technical knowledge, strong risk control, and luck, making it highly replicable for ordinary individuals. A more realistic path is to view cryptocurrencies as high-risk investment categories, participating in small amounts while fully understanding the risks, while also enhancing primary skills and optimizing cash flow. For ordinary people wishing to achieve wealth leap in the digital age, rationality and patience are more important than taking risks.
Having been in the market for many years, I deeply understand the opportunities and traps within. If your investment has not gone well and you feel regret for your losses, leave a 999 in the comments! I will share my insights.
