This article was written on February 7th.

I did some leg exercises yesterday and felt a little tired. I went to bed at 12 o'clock. When I woke up in the morning, I saw that Ethereum was at 1610, which was a pullback. That was good. Looking down, Agix fell to 0.42, which was really a happy event. If it were to pull back again, it would definitely pick me up. But it rose to 0.49 after a while.

In fact, I have a good understanding of the fact that the strong will always be strong. Some of these truths are simple and plain. After reading them, I thought I understood them, but sometimes when I think about it again, I will have a new understanding.

The first law of Defi is "When you don't know whose money you are making, you are often the source of income." As a trader who mainly participates in the secondary market, I think my income comes from other participants in this market. This understanding is correct, but not accurate enough.

Let me share my recent losing money. I lost money on High. At the beginning, I was quite optimistic about High.

1. The name is exciting

2. It used to be Binance’s Launchpool project

3. Recently, the VR track has also been affected by the sector rotation. High itself is a metaverse project and can also get VR

4. CZ previously said that Binance likes to invest in VR projects. High happens to meet all the conditions in CZ’s tweet.

5. Binance and Animoca Investments, both of which are the overlords of the VC world

6. Market capitalization is very low

So I bought High before that, and it did make money, but then the news broke out that High announced a collaboration with Jay Chou. After that AMA, High rose to 4.5, and I continued to add to my position at a price of more than 4 yuan. At that time, all I could think of was the huge noise that the name Jay Chou could bring and the story of Jay Chou Bear. Later, because I bought it at a staged high point, I sold it when the price fell.

Looking back at High's operation, I found that I had a mindset that Jay Chou had a lot of traffic, so there would be a lot of people to take over. I could even say that I was assuming that there would be a group of leeks who would take over my order, and I didn't think highly of other market participants.

However, after experiencing a year-long decline in the past 22 years, the proportion of market newcomers who are still active in this market is relatively small.

The market often follows the 80/20 rule, where 20% of people earn 80% of the money, or perhaps even worse.

Then these 20% of people must have completely crushed the other 80% in terms of cognition, funding, technology, information, etc. The gap between the two must be huge.

So how to make money, keep up with these 20%, or become a part of this 20%.

The funds that make the most profit in this market at a certain stage must be the most advanced funds at this stage. They have their own preferences and cognitions. The most advanced funds must also have the most advanced preferences and cognitions.

Let’s see what the market is hyping recently?

  1. The most powerful public chain of the new generation——Apt

  2. Microsoft and Google are joining the AI ​​market——Agix

  3. Layer 2 that is expected to be implemented——Op, Magic

They are all new things. I think the quality of the target is determined by comparison, and it is often the choice of the market. High's fundamentals, the ability of the project party and the financial strength do not support competing with the three selected by the market, or they are not at the same level at all.

Of course, the specific situation still needs to be analyzed specifically. After 22 years of brutal decline, those who can survive in the stock market are all capable, so it is understandable to make such a decision and the current market situation.

If a new king of cryptocurrencies can emerge in the future and attract a large number of newcomers to enter the market, then, first of all, the new king will be able to ascend the throne and will be the most popular player in the market. When a large number of newcomers are already in the market and are fomoed, it is still unknown whether a meme with a hundred or a thousand times the value will be born. If the hot money that is good at advanced funds cannot switch its style and cognition in time, it is normal for it not to make money in such a market.

There is no limit to rise and there is no limit to fall, profits and losses must have the same source.

That's all, Dyor.

Author: Beyond, Twitter @Beyond0x009; Editor: Gemini, Twitter @Gemini0x17