A friend of mine got involved in the cryptocurrency market in 2016 and witnessed the extraordinary bull market in 2017.
He started with $120,000 as the investment capital, and his portfolio soared to more than $9 million at its peak. Two particularly notable investments were GXS and Ant Financial (later renamed NEO). GXS bought 3 BTC at $7,000 each during the private placement, with an opening valuation of $2.5 million; and for Ant Financial, he bought 12,000 tokens, each worth more than $900 at the peak, with a cumulative value of far more than $9 million.
During this smooth period, he became overconfident and even set an ambitious goal of $90 million. However, the market suddenly changed in 2018 and turned into a bear market. His portfolio was filled with many little-known tokens, so he suffered heavy losses. This period of adversity made him reflect deeply and realize that the market is ruthless and personal emotions and pain seem insignificant in it.
After this challenging period, he learned two important lessons. First, he realized that his success in 2017 was not due to his extraordinary ability, but to favorable market conditions. He was just lucky to catch the booming market. Second, he deeply realized the importance of fund management: the strategy of small funds is not suitable for large-scale funds, and blindly applying it may lead to heavy losses.
After re-examining his investment strategy, he decided to shift his focus to Bitcoin (BTC), Ethereum (ETH) and Tether (USDT), while divesting most of the lesser-known tokens. After the baptism of bull and bear markets, his investment strategy has become more stable and balanced. As the market shows an upward trend again, his priority is to take profits and reconfigure the portfolio, rather than blindly pursue high returns. He is still confident in the future of cryptocurrencies and firmly believes that they will exceed historical highs.
If you like my article, remember to like and follow!
