I'm thinking about a question: if all the coins drop by ten times, it won’t be until 2028 to rise again, right? Or by then, will they be delisted and replaced with new coins? Have the investors all run away? Each type of coin has a bunch of people stuck at the top. Looking at the coins from 2021, there are hardly any that can exceed those from 2021. Did you buy based on intuition? Did you consider stop-loss levels when buying?
Previously, we talked about consensus, and this time we will discuss what consensus actually affects.
When the entire community reaches a consensus on a particular cryptocurrency, it inevitably generates value through blockchain technology.
Aristotle once shared his thoughts on this: "Money is the result of some social contract or legislation." This idea has evolved into the popular notion today that money is merely a "collective illusion," meaning that all members of society believe it serves a common good.
Therefore, consensus is about building momentum; once the momentum builds, it is hard to stop. When a cryptocurrency becomes a common interest for more and more people, more individuals will come to "maintain" its "price management."
A typical example is Bitcoin. As the consensus around Bitcoin grows, its price continues to rise in a winding manner, creating myths of wealth. For many, it becomes a matter of ideals, freedom, and a focus on the spiritual aspect. Those who are strongly affected by FOMO due to Bitcoin's surge will also join in purchasing Bitcoin, which in turn injects more funds into the market, propelling Bitcoin's price upward.
In a decentralized model, does everyone have the opportunity to participate in the establishment of trust and the accumulation of consensus for a particular cryptocurrency, thus becoming the main beneficiaries?
Many newcomers just entering the cryptocurrency world don't know how to operate. The initial capital is usually under 1000U, and they ask me for good strategies. Today, I will share my suggestions. For example, if you have 1000U, divide it into 10 portions, and invest 100U each time, with a recommended leverage of 20X. Newcomers often struggle to control their mindset with higher multiples. The remaining 900U should be kept in a financial account. If you lose 100U, you must not think about averaging down. If you lose everything, the first thing you need to do is reflect and summarize, then take a break for 1-2 days. Don't fear missing market opportunities; Bitcoin's volatility is always present. There are significant fluctuations every month, and opportunities abound; it just depends on your luck. Once you're adjusted, divide the remaining 900U by 10 to make each portion 90U, and then invest again. This time, be careful and aim to earn back that money. Suppose you earn 300U this time; keep 100U and transfer out the remaining 200U. This way, you'll feel more secure, and your mindset will improve significantly. Never invest everything at once; if a black swan event occurs, you could lose everything in one go and have to start over. Objectively speaking, in contract trading, just open at 10X. If your direction is wrong and it drops 10%, you will get liquidated. And even with BTC, a 20% fluctuation in a year is very normal. If you are fully invested every time, then no matter how much you earned before, it becomes meaningless; you will end up at zero. Walking by the river often, no one can guarantee that they will be right every time. A skilled trader with a 60% success rate is already quite impressive. Therefore, position management is extremely important. Even if you have a 90% win rate, one mistake could lead to irretrievable losses.