In the cryptocurrency world, people often say, "To make money, you must enhance your understanding,"
but many people, upon hearing the term "understanding," feel it is vague and even think it is just hype.
In reality——
What is "understanding"?
Simply put: Understanding = the depth of your understanding of things + judgment ability.
In the cryptocurrency world, understanding is your true comprehension of the market, projects, human nature, rules, risks, and trends.
Here are a few specific manifestations of "understanding":
1. Do you know how bull and bear markets alternate?
Many people enter the market only during a bull market and run away as soon as a bear market arrives.
Those with high understanding have already gradually withdrawn at the peak of the bull market and are accumulating in batches during the bear market.
2. Can you distinguish between the "real bottom" and the coins that "will still drop"?
Those with high understanding judge trends through data, capital flow, and policy news,
while those with low understanding only look at K-line charts, deceiving themselves.
3. Can you see through the tricks behind "hundredfold coins"?
People with low understanding are tempted by "financial freedom" and jump into Ponzi schemes;
those with high understanding see through the project parties, token distribution, lock-up structures, and community sentiment.
Why is "understanding" so important?
Because in the cryptocurrency market, which is a "zero-sum game":
information gap + understanding gap = harvesting channel
Those with low understanding are the source of others' wealth;
those with high understanding have the opportunity to take profits.
How to enhance understanding:
1. Systematic learning (understanding blockchain principles, token mechanisms, macro logic)
2. Follow the right people (learn how experts judge the market)
3. Review your own operations (why did you profit? Where did you go wrong?)
4. Stay away from emotional trading (less FOMO, less following trends)
"Understanding" may sound abstract, but it reflects the thinking logic behind every trade you make.
Those with understanding do not rely on luck to make money;
those with shallow understanding, even if they make a profit, will eventually lose it back.
Thus, the true core competitiveness in the cryptocurrency world is not the speed of getting rich, but the height of understanding.
Keep up with the rising sun; now is the time to make money!
