My cousin, Lao Liu, is recognized as a "smart guy" in our family. He has been doing business for many years and has saved some money by wholesale building materials. Recently, he heard from his friends that the cryptocurrency circle can make money quickly, so he started to invest in digital currencies. Unexpectedly, in just two months, his account went from 300,000 to 80,000.
Here's what happened: Lao Liu had a friend who introduced him to a "high-yield mining pool project" and said that as long as he invested in it, he could earn a stable 1% return every day. The friend also showed Lao Liu a screenshot of his own earnings, and his account balance was rising. Lao Liu was tempted and took out 300,000 yuan to enter the market directly.
In the first few days, the profits did arrive, and Lao Liu became more and more excited, and even persuaded his family to invest. But within two weeks, this "mining pool platform" suddenly stopped withdrawing money, the website disappeared, and the customer service did not respond. Lao Liu was dumbfounded. Not only did he lose all his principal, but he also dragged a few friends to "get on board" with him.
Lao Liu fell into a typical "Ponzi scheme" that attracted investors with high returns, but in essence only used the funds of newcomers to pay early participants. Once the capital chain breaks, the platform will run away.
• The higher the return, the greater the risk: A “stable return” of 1% per day in the cryptocurrency world is almost impossible, and you should be wary of risks if the return exceeds 20% annualized.
• Identify Ponzi schemes:
1. Promises of high returns with unclear risk descriptions.
2. Profits are mainly made by "recruiting people" or "developing downlines" rather than real transactions or mining business.
3. The platform is not transparent and the flow of funds cannot be queried.
Cognition is more important than courage, investment requires understanding
Before investing, Lao Liu knew almost nothing about the cryptocurrency world and relied entirely on recommendations from friends. He didn’t even know how the “mining pool” worked, let alone the analysis of the technology and token economic model behind the project.
• Investment knowledge points:
• DYOR (Do Your Own Research): Doing your own research is the basis of cryptocurrency investment. You cannot enter the market based solely on the “experience” of others.
• How to judge whether a project is reliable:
1. Look at the team: whether there is public background and industry experience.
2. Look at the technology: whether there are practical application scenarios and technical support.
3. Check the community: whether there are active user groups and public discussions.
Lao Liu bet all 300,000 yuan on a project, which concentrated his risk. If the project failed, his investment would be wiped out.
• Diversification:
• 60% of the funds are placed in mainstream currencies (such as BTC, ETH), which have lower risks and are bullish in the long term. $BTC
• 30% of the funds can be used to try emerging tracks with potential (such as DeFi, Layer2, etc.).
• 10% of the funds are kept as a reserve fund in case of emergency during market fluctuations.
• Avoid going All In: The cryptocurrency market is highly volatile, and any single asset may collapse, so don’t go all in.
After this lesson, Lao Liu summed up three iron laws:
1. Stay away from high-yield projects: Do not touch any projects whose returns exceed normal levels, and directly blacklist them.
2. Learn about the cryptocurrency world: Start studying blockchain technology and learn to distinguish the authenticity of projects, especially the economic model of tokens.
3. Allocate funds carefully: Set aside 20% of your spare money every month to invest in Bitcoin, using a fixed investment method to reduce the impact of short-term fluctuations on your mentality.
Half a year later, Lao Liu's account no longer experienced sharp rises and falls. He also learned to "buy the dip" when the market fell by holding stablecoins, and gradually made up for his previous losses.
Cryptocurrency financial management requires "basic skills"
1. Beware of high-yield traps: Projects that promise stable and high returns are mostly not trustworthy. Be sure to verify the authenticity and transparency of the project before investing.
2. Learn and understand the investment targets: Have a basic understanding of the assets you invest in to avoid being "harvested".
3. Diversify investments and avoid risks: Rationally allocate mainstream coins, potential coins and reserve funds, and do not put all funds in one basket.
4. Invest with spare money and control your mentality: Do not use living expenses or borrowed money to invest in the cryptocurrency circle, and maintain a calm investment mentality.
Invest rationally and avoid blindly entering the market
Lao Liu's story tells us that there are many investment opportunities in the cryptocurrency circle, but the risks are equally huge. Blindly pursuing high returns will only put funds into unnecessary risks. If you want to gain a foothold in the cryptocurrency circle, you must not only have patience, but also knowledge and planning.#投资理念
Remember, the secret to wealth in the cryptocurrency world is not the "temptation of high returns", but rational decision-making and long-term accumulation. Next time, when you encounter a project that is "sure to make money", you might as well ask yourself: Will pie really fall from the sky?