I believe that almost everyone in the crypto space has made money at least once, as long as they have gone through at least one cycle—whether you are trading meme coins, hoarding coins, or engaging in contracts, almost everyone has made money; I have never seen anyone who hasn't.
But in the crypto space, those who ultimately make big money are rare. Why? Many people think it's just that they didn't choose the right time to 'sell', but I will tell you, you'll never choose well, even if you seem to have succeeded in some flips and pocketed profits—it's still useless.
The reasoning is simple: because the crypto space is your only arena.
There's a saying: 'Once you enter the crypto space, it's as deep as the sea', and another: 'Those who have made money in the crypto space can no longer look at other industries.' Why? Because during the bull market in crypto, money comes in too fast, so there is no longer any patience to slowly make money elsewhere.
Many people's assets initially had many allocations, but gradually, everything shifted to the crypto space—these assets were almost all moved over during the bull market in crypto because prices were skyrocketing daily. Every night, you would realize you earned much less money, so everything slowly moved over. After moving over, you can never move them out again because you no longer find the fluctuations in other places appealing.
But there is an unhealthy aspect to this: the crypto space has many hotspots and temptations. If your 'arena' is reduced to just the crypto space, then your capital allocation will be very singular—it's nearly impossible to maintain a long-term cash position in the crypto space; there will always be some wealth effect that draws you in, and slowly you'll end up fully invested again.
So even if you sell out in a timely manner during some token investments and pocket the profits, what difference does it make? You'll soon get carried away and rush into other targets, filling your position again—that's the problem. It's not that you didn't choose a good selling time, but rather that you 'fundamentally cannot truly sell out'.
This is human nature, and I can't avoid it. I mentioned before that I was stuck with over 40 million RMB in $trump, so my cost isn't necessarily lower than yours. But perhaps my advantage is that I can recognize myself and human nature better than many others. That's why I put shackles on myself, but they don't—many of my asset allocations cannot be accessed in the short term, so no matter how good an opportunity arises, I can't get carried away or shift assets from other places to go all in. Regardless of whether the money I play with is losing or gaining, it's all game currency. If I make money, I'll put a little into assets; if I lose, I'll summarize my experience and continue playing—what I need to ensure is that the quantity of things that can truly be defined as 'assets' is continuously increasing.
This point is especially important for players who have a large proportion of game currency; you should exchange a little bit for 'assets' each time, rather than trying to achieve financial freedom solely with game currency—if you have this mindset, even if you succeed once, you will eventually die in other game currencies.
Many people have also asked me what to do if all assets are locked up and they need money. Earn it! Use the interest from other assets to cope without needing to turn a large amount of assets into 'liquid status'—having a large amount of assets in a 'high liquidity' state seems to increase flexibility, but it is actually a very bad habit.
You must keep yourself in a state of 'thirst', always lacking money, which will drive you to continuously earn money while ensuring that you invest limited amounts in anything, no matter how promising it may seem. This saying won't be effective just by engraving it in your mind—over time, you will definitely encounter someone you want to pursue, and as long as the conditions are right, you'll go for it. But you know that this act is actually not very meaningful; in the long run, it's not worth spending too much effort on because your thoughts may change after a while, and you will soon meet the next one. So you should avoid letting yourself be in a 'conditions met' state, rather than just telling yourself 'it's meaningless to do this'—people do not always act rationally.
But note that always being in a state of lacking money does not mean you truly lack money. It's not that you really have to play through all your money to be in a state of thirst; it's simply about locking up liquidity—your assets may be plentiful, but the proportion you can use at any given moment is very small. For example, some people have locked up BTC, some have bought insurance that requires cash in a fixed period, some have regular mortgage payments, and some have invested in funds that cannot be redeemed for several years, etc.
What should be locked up long-term? What is worth locking up long-term? Which things have the highest long-term compound returns? You need to keep learning and judge for yourself; everyone's answers may differ. But the strategy of 'locking up most liquidity' is something you can reference. It can prevent you from recklessly playing through your money due to excessive confidence and can keep your asset allocation in a healthy state—not because you want to be healthy, but because you can only be 'forced to be healthy'; it's not that you don't want to eat junk food, but your stomach can only hold so much.
(End)
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I am Wenhua, thank you for reading.
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