Yesterday I wrote a bit about macro investment strategies, and today I continue from yesterday's article. These investment strategies are theoretically applicable everywhere, and I hope to gain some insights into the truths of the cryptocurrency space together with everyone.
Investors' most fatal weakness after buying tokens is a lack of patience. Some investors lose confidence due to a sluggish market, some give up their own choices because they compare themselves to others' profits, and some eagerly chase new market hotspots, constantly adjusting their portfolios. In fact, if a thoughtful investor calculates, at the end of the year, the profits obtained are sometimes lower than the fees, and most people not only fail to make money but also pay a lot in fees. According to relevant statistics, over the past twenty years in the global cryptocurrency market, the fees collected by the government have actually exceeded the total profits of investors in the market. It seems that the 'market makers' are the ones making the most profit.
From the current index perspective, this position is neither a historical high nor a low. However, considering the continuous growth of the global economy and the ongoing expansion of the cryptocurrency space, the historical bottom should be raised accordingly. The market is currently undergoing continuous fluctuations, with low market sentiment and low profit effects, making many investors appear very blind. At this time, investors should hold firm in their confidence in the market, as well as in quality tokens and popular stocks.
Like any investment, to achieve success with tokens, one must possess a big-picture perspective and unwavering confidence in the cryptocurrency space. If we are limited to short-term fluctuations in the market, overly focused on the daily or tomorrow's limit-up, it becomes difficult to grasp the essence of the market, let alone the rhythm of waves, much less to achieve long-term stable and efficient trading profits. Looking at the historical return rates of the cryptocurrency market in the United States, over the past 100 years, the average return rate of tokens has been over 10%, while other investment products like government bonds, real estate, gold, and corporate bonds have not reached the return rates of the token market. Although people encounter various economic crises in every era, the yield of tokens remains the most valuable among all investment products.
People without a big-picture perspective will only seek small gains, quickly leaving after making enough money for groceries, even in a bull market. In a fluctuating market, they fail to see the major trends, blindly jumping in during a rebound, and after a failed rebound, they are reluctant to decisively exit, resulting in being stuck with one stock after another. Since the market is determined by the collective decisions of all stock traders, it can be considered that the entire market reflects people's psychological responses. Almost all investors face two mindsets when confronting the market: hope and disappointment. However, most people blindly buy in when they are filled with hope, and then blindly sell off when they feel disappointment. The market sometimes shows extreme personalities, being fearful at times, excited at others, lethargic and gloomy at times, and then full of wisdom and vigor. No matter how great the theories or how great the figures are, they cannot effectively grasp the market's mood over the long term.
Therefore, when facing the capricious Mr. Market, investors should firmly maintain their confidence in the cryptocurrency space, rather than being led by the nose by the market. Excellent investors need to have unwavering patience, waiting, observing, making plans before taking action, and responding to changes with stability. Just think, when winter arrives, spring can't be far behind?
