Truth in the cryptocurrency circle: Is 90% of the loss destiny or choice?
"90% of people in the cryptocurrency circle are losing money" - this is not an exaggeration, but a naked presentation of the exchange's backend data. In this market intertwined with wealth myths and bankruptcy nightmares, losing money is not an accident, but a high probability event.
1. A novice who loves to play: The self-cultivation of a retail investor.
Cash holding anxiety: Watching market fluctuations while holding cash is harder to bear than losing money.
Short-term addict: Using high-frequency trading to numb oneself, yet unaware that 99% of short-term traders are contributing to the exchange's fees.
Survivor fantasy: Always thinking they will be the 110%, yet too afraid to even look back at their trading records.
Truth: Exchanges earn from fees, project parties earn from intelligence taxes, and only gamblers are seriously losing money.
🚀 Former peak escapee, now a reflector.
Successfully avoiding the market peak after the U.S. election last December, behind the seemingly perfect operation lies the false prosperity built on short-term speculation.
Making money through trends: Indeed capturing the market, but essentially betting correctly on short-term fluctuations.
Desire amplifier: Profits under contract leverage are like drugs, leading one to mistakenly believe they have grasped the wealth code.
Survivorship bias: A single success may just be luck, but it can easily be packaged as 'trading talent'.
Warning: Money earned by luck will eventually be lost due to insufficient understanding.
🎮 Cryptocurrency circle game rules: Who is making the rules, and who is being harvested?
The essence of the cryptocurrency circle is a carefully designed casino:
Exchanges: Manipulating through candlestick charts, triggering stop-losses, and enticing with high leverage, making players 'voluntarily' spend money.
Project party: Using white papers to paint a picture, attracting bag holders with 'hundred times coin' stories.
Market maker: Utilizing information asymmetry and liquidity advantages to harvest every bit of profit from retail investors.
Cruel reality: In this zero-sum game, the money earned by exchanges, project parties, and market makers is the principal lost by retail investors.
💸 Contract traps: The deadly temptation of desire amplifiers.
Contract trading can be called 'modern financial opium':
Psychological manipulation: Displaying profit numbers in advance to stimulate dopamine secretion.
Leverage poison: 110 times leverage amplifies profits while also amplifying greed and fear.
Liquidation fate: Retail investors without strict strategies will lose everything in some future pullback.
Data evidence: Among Bitcoin spot investors, the profit ratio of long-term holders exceeds 70%, while contract players have a loss rate as high as 95%.
🌍 Policy fundamentals: The real wealth code.
Short-term fluctuations in the cryptocurrency circle rely on emotions, while long-term trends depend on policies.
Federal Reserve interest rate cut expectations: If cumulative rate cuts total 1100 basis points within the year, liquidity easing will directly push up cryptocurrency prices.
Global regulatory trends: The SEC's attitude towards Ethereum ETFs and the regulatory frameworks for stablecoins in various countries determine the market ceiling.
Macroeconomic cycle: When risks in traditional financial markets increase, funds will flood into the cryptocurrency market seeking refuge.
Survival rule: Give up short-term speculation and focus on the Federal Reserve's interest rate meetings, U.S. CPI data, and changes in the global central bank balance sheets.
🛡️ Retail survival guide: How to survive in a casino?
Quit the short-term addiction: Reducing trading frequency from 110 times a day to once a month can save 50% on fees.
Stay away from contracts: Don't be tempted by 'hundred times leverage', spot trading is the battlefield for ordinary people.
Investing regularly is king: Set aside 5%-10% of monthly income to invest in Bitcoin, ignoring short-term fluctuations.
Focus on policy: Subscribing to the Federal Reserve's official website and CoinDesk news is more valuable than staring at candlestick charts.
Learn to hold cash: When you don't understand the market, holding cash is not weakness, but wisdom.
✨ Final advice.
The cryptocurrency circle isn’t that you can’t make money, but that 90% of people are playing the wrong way.
If you are still trading based on feelings, you will eventually be harvested.
If you are still superstitious about 'teachers leading trades', you might as well donate money directly to the exchange.
If you haven’t understood the ranking of 'policy > technology > luck', you will never escape the fate of being a retail investor.
Remember:
In a casino, living longer is more important than winning more.
When you stop doing stupid things, you have already defeated 90% of your opponents.
