Everyone wants to be profitable, to multiply their earnings enormously and to be part of the small percentage that can boast of their enormous gains in the crypto space.
Being objective, it is possible, although infrequent, these situations can occur. However, there are some realities that few talk about.
In this article we will address those uncomfortable truths that no one mentions.
Good morning Crypto Nation, what do you think if we start with a story? Many years ago, I still did not know about the existence of the world of cryptocurrencies, I entered like most, after a big rise when everyone starts talking and the word #Bitcoin! is everywhere. Like everyone else, I suffered the correction and eventually lived almost all trends, narratives, and new forms.
I participated in any number of IDOs and ICOs, I made money with the NFT gaming craze, I was part of the first meme Boom, the era of layer 1, layer 2, etc... And after so much time and experiences, I managed to learn a lot of things that I would like to share and expose some realities.
Trading does not generate wealth.
Speaking in real terms, wealth generation comes from production and work. While trading assets can be considered a job, what is produced is a distribution of wealth, but not its creation.
Why is it important to understand this?
Basically because you have to accept that for some to win, others must lose. Those who are liquidated serve the function of being the liquidity out for those who are winning.
It happens here and in any stock market, we depend on demand and the arrival of new capital for prices to rise. As the players change, the money arrives, those who are in profit sell to those newcomers and some exit.
With this in mind, let's move on to the next point.
Winners are the minority.
You’ve heard it and, if not, I tell you: In the market, the percentage of people who manage to make a difference is practically 5%, the other 95% usually loses their money, due to poor management or by liquidating accounts in futures.
It is a reality and you have to accept it, statistically, it is very likely that you will lose money.
This does not mean that you should leave, on the contrary, stay in this world but learn how it works. Become the small percentage that makes money.
Additionally, with this in mind, you will have to learn to distrust 100% secure methods, "Red pill" influencers, and pseudo-trader courses. While there are a few cases that are genuinely useful, most just want you to pay and use their referral code, drain your wallet, and when everything goes wrong, blame the market.
Many paths lead to Rome.
I hope the metaphor is understood.
In so many years I have tested and experimented with many strategies. From the use of Ema's, indicators like MacD and RSI, some experimental, combined strategies, etc.
Did I do well? It depends on the moment. Ema's strategies are useful in a Bull market, combined indicators can help in sideways moments and experimental methods are very convoluted, they have to meet many conditions.
But making a general balance, most are useful, as long as you use proper risk management.
In summary, if your strategy (whatever it is) works, maintaining it is fine, but manage the risk.
How to become rich?
Being rich or having luck.
Too cruel? Well, that's reality.
Becoming rich is statistically unlikely, especially if your capital is small or moderate. The few people who achieve it starting from the bottom must have some of these qualities:
Having luck.
Developing a sustainable system
Not getting carried away by the moment and emotions
Being a very good analyst
Luck is key, who wouldn't want to be able to choose the meme that made a 200X?
Having a system and good emotional management allows you to use compound interest. It doesn't matter if you start with little, if you manage to have sustained profits for a long time, eventually the capital grows.
Otherwise, it is easier to grow your money when you have a lot. A 30% profit is little, unless your operation is 100K.
Hold with brains.
Forget about holding for a year or two, that's pure nonsense. The meme you chose, the trendy crypto, and the newly released one, will have a very short life.
If you are going to hold, let it be solid projects that can withstand a bear market or adapt to new trends. The top 20 coins usually withstand everything, even 90% drops and grow back, below that, very few do not get left behind.
Holding only works when it is a solid project, like BTC, ETH or TRX and for one of these reasons:
The price fell and you got "trapped"
Your strategy is to buy a little each month and wait
You invested a surplus
These are savings that you can leave waiting
Otherwise, it is the worst decision to hold a meme or low cap waiting for a miracle.
Emotions are the worst enemy
The market always plays with the mind and that leads to failures.
The most common mistakes are getting carried away by feelings, whether FOMO or FUD. Being greedy and not taking profits either.
Getting excited about what is trendy doesn't end well, when the enthusiasm fades, the price deflates and thousands get trapped.
Trading while angry and making revenge trades after losing money only makes you lose what was left.
The ignorant lose everything.
People who do not educate themselves, who refuse to learn end up losing all their money without understanding why.
The first thing I did when I started making money was to try to understand why. This is real, my first meme made a 20X with that I was able to start, with more luck than the first time my second meme made a fantastic 180X and I would never say it was because I was talented, I literally got lucky and took advantage of it.
Once I made money, I started educating myself because I wanted to understand how to repeat that again. Eventually, in the Bull market, I had to study to be able to operate during the drops... In all cycles, I learned new things, sometimes I liquidated accounts, other times I had spectacular profits but always kept learning new things.
The most important thing is to learn the difference between tokens and blockchain, to use decentralized wallets, to know how to use different Blockchains and swaps, in addition to on-chain tools.
Then, it is necessary to learn a little about everything: Fundamental analysis, some strategy, understand what indicators measure and how they work or theories of analysis.
Over the years, I met a lot of people, and as I said, each one progressed with their method. The only ones I know who have never made anything are those who never wanted to learn and only bought and sold based on emotions.
I recognize that I was one of those who got lucky, but I managed to capitalize on it by learning. Many of those who got lucky as beginners later lost all their money, so don't stop educating yourselves.
Conclusions:
This is a guideline, where I included the most important realities. Of course, it is not a definitive list, there are surely more things that I did not include and that can be shared by others in the comments.
My intention is to help the community and that's why I created this profile. Citizen Crypto is a personal project, born with the purpose of helping the community, providing information, preventing them from losing money and helping them to earn.
During this time I have been providing technical analysis, with a high percentage of accuracy. In the occasions I failed, I explained how to act and seek subsequent entries. Regarding guides and news, I have been guiding to give you clarity and peace of mind.
For all this reason, I want to give a preview that soon I will be incorporating new tools to help the community. If everything goes as I hope, there will soon be great news.
Have a great day, Citizen Crypto says goodbye!