To change your fate in the cryptocurrency world, read this
It is undeniable that the wealth-creating effect of Crypto is the key factor in its rapid rise to popularity, but if your capital is limited, can you really earn a sufficiently substantial return from it? If you want to get the opportunity to "make big money" with a small investment, then the principles mentioned in this guide should be helpful to you.
When I started to get involved in cryptocurrencies in 2017, I had only one idea in my mind: I wanted to be rich. At that time, I was just an ordinary employee in a grocery store, so my investment budget was very low, but I was very eager to have a bright future. In the process, I summarized the following key strategies.
If you were starting from scratch, these should be the basic guidelines you follow:
(1) Reduce unnecessary expenses;
(2) Save money;
(3) Increase income, including engaging in side jobs;
(4) Firmly implement decision curve analysis (DCA); (5) Build a long-term plan of at least 5 years.
Of course, I know what the question you want to ask most now is, "If I invest in BTC or ETH, how can I make a lot of money?" The fact is that you can't. Even if Bitcoin rises to 100,000, investing $1,000 now will not make you a lot of money. Yes, you will earn several times decently, but it won't change your life.
Don't get me wrong, blue chips are important because they provide us with a simpler way to reduce portfolio risk beyond fundamental and technical analysis. However, if you want to significantly increase your net worth, you have to invest in riskier altcoins.
The key lies in two points
(1) Diversify investments to control risks;
(2) Use a small amount to gain a big return. This is how you make big money.
Want to make big money?
You need to accept the risk that comes with this choice. If the investment fails, don't blame anyone but yourself.
Of course, it takes time to accumulate wealth. When I first bought cryptocurrencies, the risk I took was actually very high. At that time, I bought all three altcoins and Bitcoin. Fortunately, the coins I carefully selected rose as expected, and I also decisively took part of the profits at the right time and transferred the profits to other targets with relatively lower risks to ensure a more balanced portfolio.
This should also be your primary goal. The process is as follows: (1) Early investments are concentrated on some high-growth but relatively high-risk coins. I chose VET, BNB, and TRX back then, with only a small amount of funds invested in BTC; (2) Later investment portfolios are mainly BTC, ETH, and USDC, with only a small amount of funds invested in high-risk projects. This is like sowing seeds and then harvesting fruits after the plants mature.
Narratives are money, and it’s no secret that the crypto world is highly speculative. Your focus should be on finding the next narrative and riding it, and there are many examples of this in Metaverse, AI, DeFi, Gaming, etc. “But man, how can I find them?” Let’s take a look:
(1) Follow some accounts that focus on specific areas. These accounts often focus on relatively niche small-cap projects. Due to their traffic base, these accounts can sometimes access some non-public information earlier. Following them can provide you with free alpha of potential, undervalued projects.
(2) Be careful about the KOLs you follow. Some of the "wealth codes" they share will make you a scapegoat. Relying on other people's research will not make you a better investor. You can refer to some of their opinions, but you must always do your own research.
Researching the ecosystem is one of the most profitable ways to make money. Although Layer1 and Layer2 have a lot of revenue themselves, the DAppP built on them has the most revenue. This is the case with Arbitrum, and the recent wealth effect of GMX and GNS is very obvious.
Strategy to make money by studying the ecosystem: find an emerging ecosystem through Defillama, use DappRadar to find reliable Dapps in the ecosystem, and study them in depth. For good enough projects, you must start as early as possible, so that you can reap more substantial returns. Of course, you can't win every battle, but if you stick to it, you will find that you will definitely reap the rewards.
“Brother, am I in too early?” Not really. If you find a good project, you should invest in it in the “early” stage. The later you enter, the greater the risk. And if you feel FOMO, please take a step back and look for another opportunity. There are many opportunities in the crypto market.
Track on-chain wallets. Whales are the “big hands” that control this market, and tracking their movements can help you make successful investments.
You need to master a skill. There are many tracks and things that can be done in the crypto industry. Unless you have a group of experts around you, you simply cannot keep up with the pace of industry development. If you want to improve your profitability, please specialize in a skill. You can become a Defi expert and master Ethereum-related knowledge; or deepen your understanding of NFTs and know all the popular NFT series; or you can delve into GameFi and become a gaming expert.
But remember one thing: "If you know a little bit of everything, you will be a master of nothing."
New projects have the biggest gains. People love to chase new tokens because they represent new narratives and the gains are often very attractive. Here is a little tip, pay attention to new projects listed on Binance and add them to your watch list, but don't buy them immediately after listing, because 99% of projects will be sold off immediately after listing. After listing, analyze them from multiple angles such as technical analysis and fundamentals. If you think the project is developing well after research, then they will have a higher probability of skyrocketing in the future, and it is more sensible to buy them at this time. Similar successful cases include MATIC and SOL.
Finally, I would like to remind you that the crypto world is developing very fast. How can you sleep well in such an environment?! In short, don't be lazy. The crypto market has both risks and opportunities, but as the market gradually matures and as the project passes the initial wild growth stage, its potential profit will also decline rapidly. So if you want to get rich quickly, don't sleep! Use all your time to strengthen yourself, become an expert, and do research well, so that you can get the life you want in the future.
Of course, don’t rush. Finding the next treasure is hard, and you will make mistakes along the way. Don’t lose heart, either. Champions train for years before they achieve great things. Develop a winner’s mindset and use your mistakes as valuable lessons for your growth.
Stay humble. One of the worst mistakes that investors, myself included, make is to fall into the Dunning-Kruger effect, thinking too highly of yourself, but the market will always humiliate you in other ways. You can enjoy your big money, but don't get too cocky.
Remember, try every possible way to make more money. Nowadays, the inflation situation around the world is not optimistic. If the ordinary salary cannot provide you with a good enough life, then don't hesitate. If you have too little money, it will be even more difficult to achieve the goal of financial freedom.
In short, start now, right now, do something, don't be lazy:
(1) Find ways to get a pay raise;
(2) Change to a better job;
(3) Find a side job;
(4) Develop a payable skill. Find something you want to do and work hard at it. Your future self will thank you for it.
Finally, if you are a complete novice and you are excited to enter the cryptocurrency circle after seeing BTC hit a record high, then I suggest you follow me first, learn the knowledge of the cryptocurrency circle from me, and improve your basic skills. A tall building is built from the ground, and glory can only be achieved by yourself. Only by laying a solid foundation can you go further.
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