1. Trading cryptocurrency is never as profitable as holding coins.
The cryptocurrency market has been developing for less than 15 years and is far from mature. Cryptocurrency trading is not regulated, leading to frequent issues such as overselling and network disconnection on exchanges. At the same time, the power of funds in the cryptocurrency market is magnified, and whether individuals can profit from trading largely depends on their capital strength.
Many people mistakenly believe that losing money in the stock market is due to a lack of skills, and thus think that trading in the cryptocurrency market is easier. In fact, the cryptocurrency market is more brutal than the stock market, and many who lose money in the stock market end up losing everything in cryptocurrency trading. Especially in contract trading, frequent spikes and face slapping are the norm, while the absence of spikes seems unusual. In contrast, holding coins carries less risk; today, those who are famous in the cryptocurrency market all started by holding coins.
2. The number of good projects is far less than you might think.
Especially in the field of cryptocurrency, there are many projects, but serious homogenization is evident. The Bitcoin code has been copied by countless projects; some have been optimized, while others merely changed the logo and nodes, and some even directly hard-forked without altering the wallet. Smart contracts have also become tools for fraud. Since the surge of Dogecoin and SHIB in 2021, various knockoffs have emerged, such as Jin Dog, Yin Dog, and Tian Dog.
A close observation reveals that anyone can issue a new token on a contract platform, creating the illusion of an impending surge to attract investors, while the project team has long absconded with the funds. A simple truth: who would inform retail investors before the surge to help them make money? Truly good projects are those with actual applications.
Blockchain
projects, because the development trend of the industry inevitably points to larger directions. As long as one finds the next stage of blockchain development direction, they can find their own track.
3. The cognitive level in the cryptocurrency market is generally low.
Participants are a mixed bag, some of whom do not even know how to use a mobile phone or computer, yet dare to venture into the cryptocurrency market. Absurd lies are believed by some, such as 'super-sovereign currency,' 'direct exchange with banks,' and 'government recognition.' Some people participate in check-in point activities, mistakenly believing that checking in is mining, and thus engage in many similar projects, calling themselves 'experts in mobile mining.' Many know nothing about blockchain, yet blindly rush in without learning or thinking. Even slightly more complicated knowledge and operations deter them. Society is very realistic; simplicity and lack of thinking will only lead to elimination.
