What are the first principles of the cryptocurrency world? Do you really understand?

After spending a long time in the cryptocurrency world, you will discover a paradox: the harder people work, the more likely they are to lose money; while those who are more 'laid-back' often outperform the market.

Why?

Because their 'starting point formula' is different.

Beginners focus on operations: how to buy, how to sell, who to listen to for tips?

Veterans think about: what drives prices? Who is allocating profits? Which links can drain liquidity?

This is the first principle that skips market phenomena and gets to the essence of the mechanism.

The first principles of the cryptocurrency world boil down to three core points:

1. Narratives create attention, attention attracts liquidity, and liquidity determines price increase.

2. Projects are not meant to fulfill dreams, but to allocate chips.

3. You are not trading with the market, but rather competing against 'information asymmetry.'

Most beginners only look for certainty in market charts, while veterans seek inevitability in structure, mechanisms, narratives, and behavioral patterns.

A person who truly understands won't ask, 'Can this coin go up?' but will ask: 'Who is controlling this market? Is there an escape route in the play design? When does the main force need to drive up prices to create selling opportunities?'

Trading cryptocurrencies without understanding the first principles is like rushing into a casino with eyes closed; winning once is luck, losing ten times is fate.

Understanding the first principles is the beginning of your real transformation from a gambler to a trader.