Investing in cryptocurrencies doesn’t necessarily lead to losses, but adopting a 'poor' mindset generally results in losses. For example, if you currently possess ten million yuan, just from the perspective of wealth, it’s clear that you are not 'poor.' However, if you wish to double that sum to twenty million in a very short time or aim to achieve high returns of one hundred to two hundred thousand yuan daily through cryptocurrency investments, then your mindset falls into the 'poor' category. Moreover, such thinking will inevitably lead to losses in investment. Why do many people believe that 'poor' individuals will lose money when investing in the crypto space? Because there is a significant difference between how wealthy and poor individuals invest in cryptocurrencies.
1. Many 'poor' individuals engage in cryptocurrency trading with the dream of becoming rich quickly. In contrast, for wealthy individuals, entering the crypto space and investing in cryptocurrencies is primarily about preserving and increasing their assets. As a result, when the price of a cryptocurrency rises, 'poor' individuals are often reluctant to sell, and when the price starts to fall, they are hesitant to cut their losses. This mindset leads them to miss opportunities for profit and even to reduce their losses. In the crypto space, 'poor' individuals frequently chase rising prices and sell off at falling prices, contributing significantly to exchanges and brokers while missing out on potential earnings. It's important to note that the more trades you make during the cryptocurrency trading process, the easier it is to increase your error rate. Once a mistake is made, it could wipe out all the profits earned from the previous ten successful trades, and more severe situations could arise.
2. Wealthy individuals can leverage their investments in cryptocurrency to continuously expand their position profits. Moreover, if the market in the crypto space experiences a downturn or if a particular position is no longer viable, they can utilize their financial advantages to engage in substantial new positions. However, 'poor' individuals typically lack sufficient funds and do not qualify for leverage; even if they want to take new positions, they have to rely on prints.
3. Wealthy investors not only have financial advantages but also significant advantages in terms of information sources in the crypto space. Wealthy individuals generally have extensive social circles, making it relatively easy to obtain precise information related to investments. In contrast, 'poor' individuals often have difficulty acquiring accurate information when investing in cryptocurrencies, leading them to follow trends blindly. Sometimes, even if they manage to obtain insider information, it may have been passed around so many times that it becomes unreliable; it would be better not to listen. If they follow the trend blindly after hearing such information, they risk getting trapped at high prices, making it very difficult to break free from losses. This is why there is a saying that 'poor' individuals investing in cryptocurrencies often end up losing money.
4. Even if wealthy individuals experience losses in cryptocurrency investments, they can afford it; that amount may not mean much to them, and they still have the opportunity to start over. However, 'poor' individuals cannot necessarily afford to lose; after a loss, the best outcome may simply be losing their previous profits. If additional mistakes occur afterward, they truly face the risk of incurring substantial losses. Furthermore, for 'poor' individuals, the greater the losses they incur, the more pressure they face. This, in turn, raises the likelihood of making errors, ultimately leading to irremediable losses. In fact, whether 'poor' or wealthy, individuals should possess a long-term and unique perspective when investing in the crypto space. They should not reduce their holdings when prices rise or fear when prices fall. Continuous learning from others' valuable insights and enhancing one's investment advantages is crucial. In the crypto space, one should continually accumulate experience to learn useful information and achieve success in wealth accumulation.
It has been proven that without the correct direction, even the greatest skills are useless. Without the correct direction, no amount of effort will yield results. After experiencing a significant drop in the crypto space, all retail investors are eager to buy at the lowest point, but there may be lower points yet. It's important to understand that a bottom is just a point, while a trend is a long line. If you don't attempt to catch the bottom, you may only lose a point of profit; however, if you catch the wrong bottom, you will bear the loss of a whole line. So why compare a point and a line in terms of length? However, the bottom still needs to be caught, but it's not absolute; it should be relatively low.
