Cognition determines everything! 【Extremely critical】
The crypto world is a place where the poor become poorer and the rich become richer. Stories of getting rich quickly are not as widespread, and there are not as many nouveau riche as imagined.
The rich hold a capital of 100 million, only engage in spot trading, and leave the market once they earn 20%, easily pocketing 20 million. They won't budge if expectations are not met. The poor, however, have only 100,000 as capital; even with a 20% return from spot trading, they only make 20,000, which is not enough for daily expenses.
There’s no choice but to use leverage, treating 100,000 as 1 million to gamble. It seems possible to make 200,000, but reality is harsh, and most end up with liquidation. Some poor individuals, after hearing various legendary tales of small investments yielding large returns, invest their money in “low-quality” projects, with 99.9999% losing everything. The tiny fraction that survives cannot distinguish whether it’s real players making profits or the project teams operating behind the scenes.
In conclusion, mainstream spot trading is the path to profit. Before making a profit, one must hold on tightly; eventually, they will earn money. Then, by relying on compound interest to roll the snowball, there’s no need for large investments, as the power of compound interest is enormous. Trading habits and mindset are the core; managing desires and emotions is far more important than how much money one makes.