Many people think that investing in the crypto world is simple:
You invest ten thousand, don't pay attention, and finally sell for a million after ten years.
However, the reality of the crypto world is this— you enter with ten thousand, and by the next day, it's down to five thousand. That night, you toss and turn, unable to sleep. Every subsequent late night, when you wake up to use the bathroom, you check the app to see the market.
After a grueling year, the price fluctuates between 1000 and 6000, leaving you exhausted. You are determined: if it reaches 9000, you'll cut your losses and exit. However, when the bull market arrives, your coins rise to 8500. You recall previous ups and downs, convinced that it must pull back to 6000, so you sell at 8500, planning to buy back when it dips.
You definitely made a profit, but this time, the market never returns to 6000. Instead, you hesitate and think that if you don't jump back in, you might miss the opportunity, so you chase it up to 9000, bringing your position back, but with fewer coins. Then, it pulls back from 9000 to 7000, and you waver again. Watching it rise all the way to 12000, you finally make a profit, calculating an annualized return of 20%, and console yourself: this is also a good investment!
This is the true portrayal of a beginner: going all in, full position, cutting losses, chasing gains and selling on dips, repeatedly struggling.