Many people's understanding of making money in the cryptocurrency space is actually skewed.
They think making money means buying low and selling high, earning the difference through price fluctuations. However, this way of thinking is essentially looking to the future from the present, judging whether a certain asset will be recognized by more people; in simple terms, whether consensus will expand. If the judgment is correct, you can make money; if wrong, you naturally lose money.
For example, if a project is indeed very valuable and everyone recognizes and buys it, making big money in this case is almost impossible. Because when consensus has already reached a high point, people's levels of understanding are basically consistent, with no gaps, so the profit margin is naturally minimal. If you don’t incur losses, that is already considered a good outcome.
The real logic of making money lies in the cognitive gap.
The source of income in the cryptocurrency space comes from those who have understanding early on earning money from those who realize it later or have no comprehension. The key is to plan for assets whose consensus may expand in the future or to persist in making judgments and taking actions contrary to the majority when the market is sluggish and generally pessimistic. If your understanding and actions differ from the majority and the direction is correct, this cognitive gap will become a source of profit in the future.
One day, when Bitcoin has become a well-known asset to the public, for example when bank employees recommend Bitcoin investment products to depositors, the potential for consensus expansion around Bitcoin may have already reached saturation, and returns will become unremarkable. This might be the best time to sell Bitcoin.
The core of making money in the cryptocurrency space is to maintain a different understanding from the majority and make the right choices, rather than blindly following short-term price fluctuations.