Investing in cryptocurrency requires constantly updating your knowledge system and cognitive structure.
1. Continuous learning and cognitive updating
This industry is changing so fast that it requires not only financial knowledge, but also a comprehensive understanding of technology, policies, and market hot spots. For example, this year's US election has a very significant impact on the market, so we have spent a lot of time studying Trump's victory rate and possible policy directions, and have even become "experts" on the US election to a certain extent. In addition, as new tracks continue to emerge (such as DeSci and DePINi), we continue to invest in learning and understanding these areas.
2. Use leverage with caution
The risks of leverage need to be emphasized repeatedly in every market cycle. In the past week, we have seen a 20%-30% correction in non-mainstream currencies, and positions with more than three times leverage may have been blown out. Even in a bull market, excessive leverage can lead to huge losses. Therefore, I recommend that investors always control the leverage ratio, especially when the market is volatile, and maintain a good sense of risk control.
3. Deeply cultivate specific tracks or ecology
A big investment "Alpha" comes from in-depth research on a specific track or ecology. Choose a track that interests you, learn more about its technology, community and ecological development, and even get to know its key figures. For example, although our professional organization has more resources, in the case of Sui, we missed its opportunity to rise because we did not follow its ecological development well. Community members who really understand Sui may have already discovered that its value is underestimated and quickly deployed it when the market launched.
4. Advantages of retail investors
Compared with institutions, retail investors have the advantages of flexibility and quick decision-making. For example, Hyperliquid’s token went live on Friday and tripled over the weekend. Institutional investors often cannot respond quickly due to their long decision-making process, but retail investors can use their own judgment and action to seize such opportunities. This flexibility allows retail investors to outperform professional investment institutions in some situations.
In summary, successful investment strategies include continuous learning, careful use of leverage, in-depth research on specific tracks, and taking advantage of the flexibility of retail investors to seize market opportunities.