A few days ago, someone asked: "How can I survive in the crypto space with 5000 yuan?"

I said: "Let’s do an Ethereum contract grid, setting the range between 1900-2800 USD." I say this because I am indeed doing it, based on the current market conditions, judging that the likelihood of Ethereum directly falling below the liquidation line is low (but not impossible). For 5000 yuan, I think this is a suggestion with certain risks but is relatively suitable. As a result, I was criticized: some told me to "be a person," some said "the risk is huge," some called me "bad," and some said "a small position doesn’t mean anything."

I dare say that those who say these things must be losers, definitely people without much money. Why? I've written an article about this: Making money requires separating emotions. In fact, whether making money or doing anything, to achieve good results, you must separate emotions. But people are influenced by emotions in all aspects. Why can systematic investing make money? Essentially, it’s about discarding the market's emotional influence. These people are emotional giants, not providing any specific strategies, just like to attack others. There’s no reason; they are just unhappy, have too much time, and feel insignificant, so they need to vent their emotions.

I’m writing this not to retaliate emotionally, but to state some facts. You see some people making a lot of money, right? They hold large positions and earn substantial absolute returns. But looking at the return rate, it's actually very low: earning 5 points on 2 million means 100,000, which is a lot, but in the crypto space, this return rate is minimal. You need to compare return rates horizontally because you will definitely experience drawdowns; if you earn 5 points, you might see a 10-point drawdown. If you only look at 100,000, you would certainly think it's impressive. It’s the large principal, not the skill. Making money is all about market luck.

I have been running this grid strategy for 9 days, with a return rate of 11.27%. Linear extrapolation suggests a monthly return of 30%. Is that little? Some say, "The principal is too small," but you have to look at the return rate. The market isn't unable to absorb your amount of funds; if you have 1 million or 10 million to do grids, you can still achieve a 30% return rate. But first, you don't have that money, and you won't do it. So, what I’m talking about is a 5000 yuan plan. As long as there is no one-sided decline, you can make money in fluctuations and upward trends, which means about 70% of market conditions can be profitable. In 30% of cases where there’s a crash, you might lose everything, but it’s just 5000 yuan. Meanwhile, you are also losing in spot trading; it’s not just this loss. Spot trading can recover, but 5000 yuan does not significantly impact your life. If you truly lose it, so what? You need to look at the issue comprehensively.

Currently, is participating in the Binance wallet Alpha points event profitable? Actually, not much; it might earn 3000-5000 yuan in a month, but the cost input is 900 yuan for a month. This 900 yuan is a sunk cost; once invested, it's gone. But you need to look at the absolute return rate, which many people overlook. I don’t understand why they look down on it. I have set up 7 accounts; if one account earns 2000, that’s a total of 14,000 earnings. Using that 14,000 to buy assets means you have more than 14,000, right? If you use 14,000 to do Virtual IPOs, it could turn into 24,000 in 30 days. If Virtual can be played for 3 months, 24,000 could become 96,000. Even if you lose, it’s just 14,000; what impact does it have on your principal?

The 130 US dollars earned from the grid can buy Virtual points for 2 more days. In a month, this 130 US dollars will become 260 US dollars. Some people simply complain out of emotional discomfort, criticizing for the sake of criticizing. If you can't accept any risk and can't let go of any sense of security, then why engage in the financial market? Working honestly is the most stable.

Today, let's specifically discuss which has more risk: contracts or spot trading. Many people haven't thought deeply about it and will definitely say contracts have higher risk. In fact, contracts are just hard to make money with, not that they are high risk. For most people, contracts don't pose a significant risk. This is what I say to those who can think logically, except for gamblers.

In reality, are there more people going bankrupt due to gambling or starting businesses? Definitely starting businesses. Very few people would gamble away their family fortune, but many would go all in on a business. In reality, are there more people making money through work and entrepreneurship, or through gambling? Definitely through work and entrepreneurship. Profits are linked to risks; few people make money through gambling, so the overall risk is low; while entrepreneurship and work yield high profits, the risks are high. Many people have never considered this overall risk issue. Risks occur because individuals do not realize the existence of risk, only listening to others and then making emotional judgments.

Playing contracts is the same. Are there more people losing money in contracts or in spot trading? Definitely in contracts. But in terms of the amount of money lost, which is more? It’s in spot trading. Because normal people are not professional speculators, they play contracts with a little money and wait for the bull market in spot trading. They keep waiting. Altcoins keep falling, and when the bull market comes, they buy at the peak; if it doesn't come, they keep averaging down. The process of losing is numbing. So, when you lose in spot trading, it's substantial. When a contract gets liquidated, you might curse: "Shit, I won't do this next time"; you might understand after just one time. Losing in contracts to the point of having no money doesn't cost much, while the falling process in spot trading is numbing and might lead to larger losses. I have friends who lost millions in spot trading while those in contracts lost tens of thousands.

Many people have played both contracts and spot trading; they might feel that losing a few tens of thousands in contracts is too difficult and stop playing; spot trading tells you to "buy the right assets and you’ll profit when the bull market comes," so they keep buying, but when the bull market arrives, it just doesn’t rise. You might keep averaging down until you run out of money, and then you've lost everything. Therefore, it's essential to view issues dialectically; risks always exist, and to make money, you have to accept risks, not avoid or attack them. Risks are good things; they increase your anti-fragility. To gain returns in risks, your assets will grow. As long as you engage in a bit of deep thinking and don’t just follow others blindly, the outcome will be entirely different.

Yesterday someone commented, "It's impossible to make money now." How is that possible? Aren't we always making money? Aren't others also making money? It’s just that they insist on saying, "I want to earn tenfold or a hundredfold" right from the start, which is delusion, not making money. For example, Virtual IPOs and wallet point activities, aren't they all money? Many people say, "I can’t do it," but it’s simple: spend money to ask others for help, pay for it.

Many people strongly resist paying, thinking "I don't want to be taken advantage of." But how can you grow without being taken advantage of? What’s the harm in a little cut? Why do you think you can make money without taking any risks? When people see others wanting money, they get upset and say, "People have lost their morals," which is being swept away by emotions. So, don’t earn money first; clear your emotions first and think when you are stable. Isn’t making money about paying for goods, buying equipment, and selling? If you understand this logic, you won't be swayed by emotions.

The root cause is that many people are emotionally driven, not results-oriented.

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