Brothers, hello everyone, I am trader Zhu Yici. Behind the silently beating numbers today are so much sadness, helplessness and tears.
Most people come to this market with the desire to get rich quickly. They keep an eye on the market diligently every day and try their best to learn all kinds of information about the cryptocurrency circle. Jokingly speaking, they were not so serious when they were in school. However, the final outcome of most people is to leave this market with scars all over their bodies and swear never to touch it again.
Why is this so? Because this circle itself does not generate money. Every penny you earn is lost by another person, and vice versa. The zero-sum game is doomed to be cruel, and the 80/20 rule is always in effect.
How does this circle work? It is a cycle of harvesting, and the exchange of funds and chips completes the transfer of wealth.
The first step is to create chips, issuing a certain token by packaging and promoting a certain concept, in short, do it as awesome as possible, and then get a bunch of so-called authoritative people and institutions to endorse it and build a preliminary consensus.
The second step is to increase the market value, which can be further subdivided. One type is the market transactions that retail investors can participate in in the early stage, which increase the market value through the joint efforts of major funds and the market. A typical representative is the meme coin; the other type is the now notorious institutional coin, which increases the market value through one, two, and three rounds of financing, and then directly distributes it after entering the secondary market. Retail investors can only take over the shares, and the copycat market is brought down by this type of VC coin.
The third step is to distribute chips at high levels. At this time, the market is often the most bustling, with all kinds of good news flying around, retail investors' sentiment is extremely fomo, and market liquidity is very good, which provides space for the main force to sell. A big negative line falls straight down, announcing the peak of this bull market.
In the fourth step, the market oscillates and falls, and the trapped investors keep cutting their losses, which eventually leads to a stampede under the instigation of the main force. After hitting a low point, the main force begins to collect chips during the low-level oscillation, forming a perfect closed loop.
This is roughly the process. During this period, there are various good and bad news interspersed, and declines, rebounds and sideways movements take turns. In the end, the end result for most people is that they lose their money and chips.
After reading this, what do you think is the current stage and how to deal with it? The cycle cannot be broken. The first step is to follow the cycle, and the second step is to cross the cycle.
