The cryptocurrency market is filled with myths of wealth and stories of total loss. These ten truths tear away its glamorous facade, revealing the brutal laws of survival. Understanding them is essential to remain clear-headed in a high-risk market.
1. The 'zero curse' of altcoins
Under the slogan of 'hundredfold coins', altcoins are like traps. Most lack practical applications, their prices rely on speculation, and once the hype fades, there is a 99.99% chance of going to zero.
2. The trap of 'money-making opportunities'
When a project is heavily promoted as a 'wealth code', it is often a harvesting plan behind it. When information is frenzied, it is precisely the highest risk moment.
3. The alternation of bear and bull markets
When the market is in desperate sell-off, the seeds of a bull market may have already sprouted. Extreme emotions signal trend reversals, requiring strong psychology and insight.
4. The crisis in an upward trend
When investors are full of confidence in the upward trend, they may step into the trap set by the manipulators. An overly certain upward trend hides fatal risks.
5. The 'susceptibility' to losses
The high volatility of the cryptocurrency market and 24-hour trading make losses easy to occur. Leverage amplifies the risk, with 80% of retail investors ending up with losses.
6. The 'true face' of KOLs
Not all KOLs are making a fortune. Some who stick to their principles have limited income, while unscrupulous KOLs collude with project parties to exploit investors.
7. The cruel truth of contract trading
High leverage in contracts is a double-edged sword. It seems to have a 50% success rate, but in reality, less than 10% are profitable. Even slight fluctuations can trigger liquidation.
8. The 'symbiotic relationship' with manipulators
Fighting against manipulators is like hitting a stone with an egg. Wise investors choose to follow, but they need to judge the rhythm and set stop-loss and take-profit orders.
9. The illusory nature of value
The value in the cryptocurrency market is often driven by greed, as fragile as a bubble. Although Bitcoin has some value, it remains full of uncertainty.
10. The element of luck in sudden wealth
In the stories of sudden wealth in the cryptocurrency market, luck plays a key role. Hard work is important, but relying solely on it does not guarantee sudden wealth.
These ten truths reveal the complexity and risks of investing in the cryptocurrency market. Investors need to stay clear-headed, responding with patience, thoughtfulness, execution, and self-discipline, always prioritizing the safety of their capital and avoiding emotional trading to find a way to survive in the cryptocurrency space.
