Why do some people lose everything in cryptocurrency trading while others achieve financial freedom? The outcomes of cryptocurrency trading can be roughly categorized into three types: one loses everything, one achieves financial freedom, and one operates like a tiger but ends up with pitiful returns. Let's discuss these three situations.

The first type: losing everything in cryptocurrency trading.

In this situation, many people are eager to get rich quickly, using leverage, trading low-quality coins, or even borrowing money to trade cryptocurrencies. The volatility in the crypto market is significantly greater than in traditional financial markets, and a correction of over 50% is not uncommon, which can lead to liquidation for those using leverage. Alternatively, if a low-quality coin goes to zero or a project runs away, only the holders are left bankrupt.

There are also frequent incidents such as losing private keys, exchanges being hacked, and phishing scams. These security risks and operational mistakes should be avoided as much as possible.

The second type: achieving financial freedom through cryptocurrency trading.

The path is simple, but very few are willing to slowly become wealthy. The ones who most often achieve financial freedom through trading are the simple hoarders, who only buy Bitcoin and mainstream coins. They buy whenever they have money, hold onto their assets without selling, and remain passively fully invested, regardless of volatility. They should not be called traders but rather hoarders, just like some people buy real estate or gold as quality assets. In short, it's about heavy investment plus long-term holding.

The third type: operating like a tiger but ending up with meager returns.

In this case, a large portion often consists of smart and diligent individuals who work hard to study various low-quality projects and airdrops, but they often do not dare to heavily invest in these targets, so after all their hard work, they earn very little.

There are also various traders who watch the market closely, thinking they have avoided minor corrections, but they can easily be left behind and miss out on major market movements.

Finally, there are those whose personalities are simply not suited for investing; investing goes against human nature, yet most people chase highs and sell lows, entering at high prices out of FOMO and cutting losses at low prices or selling as soon as there is a rise, unable to capture significant market movements.

In investing, the cultivation of character is more important than intelligence. Let's cultivate together.