Every newcomer to the currency circle is mostly attracted by the stories of wealth, and then there are big pits, small pits, and big losses. How to change?
I want to share my experiences over the years with everyone as much as possible, so that people new to the currency circle can avoid pitfalls.
After all, I have stepped into many pitfalls and taken many detours, but I was finally able to find my way in the cryptocurrency world and obtained excess returns. I can combine classic theories with the actual situation of the cryptocurrency world to give novices a good direction.
However, how to write and what to write is a big question. How can I achieve my goals, such as being theoretically correct, systematic enough, easy to read, rich in content, etc.?
It is not easy to achieve any of these, especially the four words "theoretical correctness". Is there any universal investment truth in this world? Is there any universally applicable investment rule? There are masters and classics everywhere, which ones are just frauds? Which ones can transcend time?
I have taken many detours, read almost all investment and trading books, and even took many detours because of some wrong theories. Coincidentally, because of my love for blockchain, I have also conducted in-depth research on cryptocurrency investment for a long time. Looking back, I will sigh that I have taken too many detours and suffered too many losses.
I don’t want everyone to go through those detours again and lose money repeatedly. That feeling is too painful.
I hope that from the first day you see this article, you will start a new and enjoyable investment career and move in the right direction towards stable happiness.

1. Correct Theory
Throughout hundreds of years of financial history, many heroes have fought in the financial field and achieved impressive achievements: Soros, the financial tycoon who dared to short sovereign currencies; Peter Lynch, who studied hundreds of stocks at the same time, "made decisions" every day, and had an annual return of up to 29.2%; Jesse Livermore, who made $100 million by shorting during the stock market crash in 1929.
Many successful people have their own "unique skills", and their investment systems are often completely different from others.
Soros likes to hold heavy positions, and he has put all his efforts into almost every major battle in his life in order to achieve success.
Peter Lynch is accustomed to observing and holding many stocks, and making various small decisions almost every day. He believes that the losses caused by small decisions are much smaller than the problems caused by several big decisions.
Livermore belonged completely to the speculative school, which was extremely risky, and this was also the root cause of his multiple bankruptcies.

1. The most outstanding investor
But looking at the history of stock market development, there may be only one most outstanding individual investor in human history, that is, Buffett, the helmsman of Berkshire Hathaway.
In Buffett's investment career, he has been considered "outdated" and "outdated" countless times in the short term, especially in bull markets. But every time people think that "Buffett is just like that", the market often hits them head-on.
He is a long-standing figure in the financial field. He believes that "you only need to be rich once in your life", that is, he believes that as long as the method is correct, everyone will become rich and will not fail. In a speech, he listed in detail how many "ordinary people" who adopted an investment system similar to his used the correct theory to beat those fund managers in the long run.
Maybe there is no way for us to become the next Buffett, but in any case, it is necessary to master the correct investment theory.

As long as the direction is right, no matter how long the road is, you will eventually arrive!
I spent a long time thinking about how to accomplish this seemingly impossible task. Until one day, I saw Buffett talking about Graham's masterpiece "The Intelligent Investor", and then I suddenly had an idea.

2. The most scientific investment theory
In 1950, Buffett, who was still a junior in college, read the book "The Intelligent Investor". At that time, the young man had been struggling on the road of investment for several years, but had not gained or made any progress. But this time, he claimed to have an epiphany. He said, "It was like meeting the believer Paul on the road to Basilica."
Buffett believes that "this is the best book on all investment", and he has repeatedly mentioned it at shareholder meetings and other occasions, and most of the years later he still believes that it is "the best book". Perhaps, to a certain extent, according to Buffett's own statement, without this book, he might have to grope in the dark for a longer time, but with this book, he finally got the truth. In the discussion of this book, we will help you better understand Buffett through specific practical understanding.
The Intelligent Investor is well-written and logically rigorous, but for cryptocurrency investors, on the one hand, many of its contents are no longer applicable, such as bonds and investment index funds; on the other hand, many of its contents are completely different, such as the logic of evaluating common stocks, which is very different from evaluating digital currencies. In addition, for novices without investment experience, it is still difficult to understand.
Therefore, I will take you into the world of cryptocurrency investment with rich pictures and easy-to-understand writing style, following the correct underlying framework and combining the actual situation of the cryptocurrency circle.

2. Reality of the Cryptocurrency Circle
The cryptocurrency world is completely different from the stock market, so the underlying framework of traditional finance is also applicable to the cryptocurrency world, but there will be great differences in the specific operational ideas. There are mainly two aspects of the difference.

1. Huge speculation
A pure value investment system is absolutely not suitable. After all, "one day in the cryptocurrency world is one year in the real world." The life cycle of most currencies is not like the stock market, which is often measured in decades. Look at the K-lines of Bitcoin and Dogecoin, which have great ups and downs. Dogecoin has increased by 100 times or 1,000 times in just one year.


Dogecoin, or DOGE, has attracted the most widespread attention due to Musk's promotion on Twitter. In the immature currency circle, these attentions are the basic soil for the rise - especially when other projects have not yet accumulated a truly strong ecosystem and practical value.
After that, with the amazing increase of SHIB and the rapid rise of many NFTs such as BAYC, we discovered some new things in this speculative field, such as consensus and meme, which are relatively rare in traditional economics but are widely used in the cryptocurrency circle. An early blockchain evangelist, Li Xiaolai, once had a recording leaked, which caused an uproar. His famous saying "The consensus of idiots is also a consensus" hurt the retail investors who believed in it.
But times have changed. Objectively speaking, the cryptocurrency world is still small in size and the ecosystem is still booming. As a result, even for valuable projects, we may have to face up to the speculative forces behind them. Perhaps this is also inevitable for financial investment.
Soros's aphorism: "The history of the world economy is a series based on illusions and lies. If you want to get rich, the way is to recognize the illusions, invest in them, and then quit the game before the illusions are recognized by the public."
The huge speculation in the cryptocurrency world requires that cryptocurrency investment must take into account more complex and cryptocurrency-specific content such as society, emotions, consensus, memes, etc. But fortunately, beneath these speculative bubbles, there is a huge improvement in productivity that is no less than the Internet revolution, as well as infinite and beautiful possibilities.
Delicious beer is bound to have more bubbles. Let us be smart investors, recognize speculation, face it and transcend it.

2. Huge volatility
Value investing does not mean long-term holding, but long-term holding and long-term optimism are common. In such a huge volatility, inexperienced investors are very likely to get lost when the market is rising and increase their investment. When the market is falling, they sell out of fear and end up with nothing.
ETH once broke the issue price and was criticized as a pyramid scheme. BNB broke the issue price immediately after it was launched, but it has achieved an astonishing 1,000-fold increase in a few years. Even Bitcoin has a broad consensus and its fluctuations are relatively small due to its size, but friends who have transitioned from the stock market may still be amazed.

Therefore, smart readers can already feel that in the cryptocurrency world, there will be a greater deviation between intrinsic value and external price than in the stock market. This is a risk but also an opportunity.
In the cryptocurrency world, the life cycle of most currencies is not measured in decades like in the stock market. Instead, the cycle is often just a few months or years. Some of these are because the projects themselves are not good, and some are because the industry is iterating too quickly and are defeated by new projects.
Therefore, investors in the cryptocurrency industry must always be vigilant against high volatility. Not understanding the new trends in the industry and being an ostrich buried in the sand is much more dangerous than the stock market.

3. Huge growth potential
In the value investment theory in the stock market, whether it is looking for moats, valuations, evaluating teams, industries, etc., it may be extremely inapplicable in the rapidly growing cryptocurrency world. There is a saying that "one day in the cryptocurrency world is like one year in the real world", especially because of the open source nature of blockchain, many good projects in your eyes may be replicated or even optimized three days later.
For the growth of the entire industry, this manifests itself as the fastest rate of evolution in human history, but for individual investors, if they do not adapt to the situation, this will be a disaster.
Therefore, I am very eager to write something that can serve as a reference system for all cryptocurrency investors. This thing must be able to stand the test of time, and no matter how many people learn and use it, it will not affect its power.
At the same time, it is dedicated to serving cryptocurrency investors and is different from all books on stock market investment. Classic investment theories will never become outdated, but for most ordinary people, "the more they learn, the more they lose", because every investment theory that seems self-consistent in the stock market may not be applicable at all in the cryptocurrency world.

Finally, I would like to quote a sentence from Buffett and dedicate it to everyone, and to a better tomorrow for all of us!

What is important is your personal abilities. Others trade your abilities. The best investment is to develop yourself!

I am Si Qing. If you want to delve deeper into the cryptocurrency world but can’t find a clue, welcome to join us for exchanges and learning.#SHIB #Meme #WIF $BTC $ETH