The wealth-creating effect of the cryptocurrency world is very attractive, but the wealth brought by getting rich overnight can also become a double-edged sword. Without proper asset management and financial management skills, wealth can easily slip away like sand in an hourglass.
After years of trading in cryptocurrencies, my cousin has seen many people who became rich overnight. These people made millions or even more in a short period of time, but because of blind investment and lack of planning, they eventually fell from the peak to the bottom and everything went back to zero. Such stories are not uncommon, so I think this is an issue worth pondering and discussing.
As the saying goes, it is easy to go from frugality to extravagance. The sudden increase in wealth often changes people's consumption habits and lifestyles, and even triggers more blind investment and extravagant consumption.
There is a very true saying that "wealth that does not match one's position will suffer from it." In the long run, this kind of lifestyle may cause people to lose control of their wealth and even fall into a financial crisis.
If your ability and wealth do not match, wealth will only bring short-term happiness. After squandering it, it will be difficult to live a frugal life, and it will bring psychological burden to people.
Then you enter a vicious circle, constantly investing heavily to look for the next token that will make you rich, but the result is that your money keeps going back to zero. Extreme people may even end up with loan debts.
Therefore, no matter how wealth pours in, it is of utmost importance to cultivate correct asset management. Only by learning investment planning, diversifying risks, and formulating reasonable consumption and savings plans can we truly control wealth, rather than being enslaved by it!