If such a group of people cannot make money in the cryptocurrency market, then what is the meaning of this market?
First, infrequent trading. The turnover rate does not exceed 10% per year, and may even be less than 5%. True patient capital, long-term capital. Transaction fees and friction costs are extremely low.
In contrast, there is a market with an annual turnover rate of 150%-860% (some funds can achieve turnover rates of over 3000%). In simple terms, all tradable stocks in this market change hands 1.5-8.6 times per year. At the most frequent times, everything rotates on average once every month.
Second, buy at low levels. Almost all varieties are bought after significant declines, with almost no instances of chasing after rises. In fact, many varieties are only bought when they have dropped by 50%-80%.
Third, sell at high levels. Never influenced by the emotions of the crowd. During periods of extreme market enthusiasm, gradually sell off holdings, recover cash, and wait for the next opportunity.
Once again, if such a group of investors cannot achieve satisfactory returns in the cryptocurrency market, then this market has no possibility of allowing most people to make money, no possibility of preserving or increasing value for most, and therefore holds no investment value for the majority.
As a seasoned cryptocurrency investor, I, Rabbit Fee, share my experiences and insights. Interested in the cryptocurrency market but don't know where to start? Follow me and check my profile to achieve freedom in this bull market.