1. Introduction: A rollercoaster journey
When it comes to the Crypto market, many people associate it with the myth of overnight wealth. But those who have truly experienced it know that this market resembles a rollercoaster ride, with some cheering, some screaming, and many losing their way along the way.
When I first entered this field, I was full of expectations but also experienced countless moments of confusion and uncertainty. Today, I want to share with you the hardest lesson I've learned on this journey.
2. The global economy under the shadow of inflation
(1) An era fraught with crises
In 2022, the global economy entered an era of high inflation. The Federal Reserve's interest rate hike policy has put risk assets at the forefront, and investors in the Crypto market have felt unprecedented pressure.
(2) Risk assets stand alone
While we hoped Crypto could become a safe haven against inflation, reality has dealt us a harsh blow. The prices of mainstream crypto assets like Bitcoin and Ethereum have plummeted, leading to a collapse of investor confidence.
3. The fate of cycles: Super Cycle and the technology maturity curve
(1) The controversy surrounding the Super Cycle
The cyclicality of the Crypto market is a pattern that cannot be ignored. From Bitcoin's halving cycle to the bull and bear cycles of the market, each rise and fall seems to be precisely calculated.
(2) Insights from the technology maturity curve
If we place the development of Crypto on the technology maturity curve, we will find that it is still in the exploration stage. Every innovation is accompanied by a bubble, and after each bubble bursts, a more solid foundation is left behind.
4. The most expensive lesson: Don't treat a moment as permanent
(1) The illusion of DeFi
In the DeFi Summer of 2020, many made a fortune, but more lost their way in the pursuit of high returns. Behind the annualized yields of up to 1000% lies an unsustainable economic model.
(2) The frenzy of NFTs
In 2021, the booming NFT market revealed the infinite possibilities of digital art. But as the market cooled, the once sky-high JPEGs are now ignored.
5. The domino effect: Lessons from the Luna collapse
The collapse of Luna is one of the most painful events in the history of the Crypto market. From the decoupling of the stablecoin UST to Luna's price hitting zero, this disaster triggered a chain reaction throughout the market.
6. In conclusion: How to face the bear market?
The bear market is a test for every investor, but it is also the soil that nurtures opportunities. Stay patient and continue learning to seize your chance in the next bull market.
This article is not only a summary of the past but also a prospect for the future. I hope these experiences and lessons can provide some inspiration for your journey in Crypto. 🌟