How to become a permanent earner in the cryptocurrency world?
Core idea
Before the bull market, play all the local dogs + hot spots to accumulate funds, and go all in at the beginning of the bull market to get a return of 5-10 times the total assets.
1. (Easy) Position Control
Position control is the basic requirement for all profits. You need to have a basic judgment on what percentage of the position is suitable for playing with which currency. Many people think that their positions are small, so they go all in on everything. If someone tells them that Blur is the future, they will go all in. If someone tells them that a certain IEO on Binance has oversold, they may go all in if it rises several times. Almost everyone starts trading in cryptocurrencies with a few thousand or tens of thousands of yuan. Don't think that if you have very little money, what's the point of playing without a few million or tens of millions. You must be able to endure loneliness when trading in cryptocurrencies. High-quality projects are mainly divided into two types: high-risk and high-return and low-risk and medium-return. High-risk and high-return usually means that 1-2 out of 5 projects can succeed, with a return of 5-100 times; low-risk and medium-return means that 80% of the cases can have a return of 5-10 times. Others that are not in this range cannot be considered high-quality investments. The suggestion for high-risk and high-return is to control the position to 5-20% no matter how optimistic a single project is. Low-risk and medium-return mainly refers to Bitcoin and Ethereum in the bear market cycle. In fact, there are very few high-quality projects, and there are less than 5 high-quality projects that can be sold every year. You can choose not to participate in other non-high-quality projects, and if you participate in a single project, keep your position within 1%. If the results for five consecutive projects are not ideal, reflect on your own abilities and do not participate in this type of project.
2. (Difficult) to reasonably understand the growth multiples of the projects you are involved in
Let me talk about a few projects first, and you can judge their future growth multiples.
—100 public chains have been issued before, and now one public chain has opened at 10e USD, and another 50e USD will be released in the future.
—The first token protocol in the Bitcoin ecosystem, with only over 3,000 participating addresses and a market value of 1.5 million US dollars.
—The second token protocol in the Bitcoin ecosystem, 150 addresses have been minted, the top 20 addresses account for 70% of the holdings, with a market value of 6 million US dollars.
—The first inscription token protocol in the Ethereum ecosystem, 2,000 addresses have been minted, with a market value of 400,000 US dollars. It claims to be able to realize the functions of Ethereum in the future and can be a decentralized layer2.
—Ethereum’s second layer2 protocol, 16e USD, and another 150e USD to be released in the future.
3. (Traditional) Identify hot spots and follow them
It is impossible for all hotspots to make money. Hotspots can only use a small amount of funds at a time, such as 0.5-1e to fight for 5-10 times or even 10-100 times of returns. If you fail 5-10 times in a row, maybe this is not a good time. Most of the local dogs during the pepe period are still relatively long-lasting, and most of the local dogs 2.0 at this time are relatively rubbish. Generally, native projects are prone to high multiples, and the rising returns of imitation projects are limited, so stop profits in time. Hotspots can only keep trying, or play with strong narratives and huge potential users.
4. (Medium) Identify powerful people
Bloggers on Twitter and Weibo who recommend you to buy coins are just for reference. Ultimately, it is recommended that you make independent judgments. If your ability is limited, try to find powerful people around you, interact with them more, and chat with them more. This is more reliable than following 1,000 big Vs on Twitter.
5. (Easy) Seize the 4-year Bitcoin halving cycle
Bitcoin will probably fall to around 15,000 by the end of this year or the middle of next year. You can rest assured to place an order at 17,000, and then place a sell order at 95,000, which will happen 90% of the time.
The bull market will start around the middle of next year, when you will go all in on Bitcoin and don't touch Ethereum. Make money in the bull market, and when the bear market comes, go out and travel and play, and don't touch the coins.