Author: Flossy
Compiled by: TechFlow
We’ve all been there – watching some random altcoin go up 10,000% in a day, blindly investing in it out of fear of missing out, dreaming of quitting our jobs. How many times has that actually worked out? If you’re like 99.99% of people, probably not many. This article isn’t about how to catch those skyrocketing coins, but rather about exploring some slightly different strategies – ones that may not be as sexy, but can actually allow you to stick around in the market long enough to see real gains.
Short-sighted strategy
How many times have you experienced a quick 2x gain on an altcoin, still holding out hope for higher returns, only to end up with losses? If this scenario sounds familiar, you are not alone. Many crypto traders have been caught in this situation due to the fear of missing out and life-changing gains.
This common experience highlights a potential in the crypto market: consider strategies for quick profits. While this is not a universal rule, here are reasons why this approach may make sense:
1. Abundant opportunities:
The crypto market offers a plethora of opportunities every day. New projects, market changes, and emerging trends are constantly creating profit potential.
2. Transience of benefits:
Due to the volatility of the market, many opportunities are short-lived. A coin that is rising today may be dead tomorrow.
3. Risk avoidance:
By locking in profits quickly, you protect yourself from the various risks inherent in the crypto markets: sudden FUD (fear, uncertainty, doubt), unreliable or inexperienced (or even stupid) project leaders, and scams/runaways.
Reality Check
Let’s get straight to the point and dive into some real-life examples. For the past three years, I have been monitoring the wallets of some of the “big altcoin investors” and KOLs. Now, here’s a question that will make you think: after three years in this space, why are these people still promoting tokens with a market cap of less than 100k if they have become so rich through their existing strategies?
They didn't.
If these influencers were really making a killing, they would have long since left the crypto market’s psychosis behind and weren’t desperately hyping up the next “100x treasure” in their Telegram groups. The fact that they’re still promoting questionable low-cap tokens in this depressed market speaks to the extent of their alleged strategy’s success.
Some observations:
Many of the wallets were worth the same or less than when I first looked at them. That was disappointing.
What’s the typical pattern? It’s a long self-perpetuating cycle of losses, occasional big gains, runaways (hello, scams), and small wins. Repeat.
This emotional roller coaster is exhausting, and many traders end up right back where they started, only with a few more grey hairs.
Now, here’s the kicker: Occasionally, one of these traders hits the jackpot. They invest in some random token and get 100x. Twitter goes wild, and for a brief moment, they become the next GCR.
But here’s the thing – dumb money can’t keep its money. These lucky winners often become the biggest losers. Why? Because they think they’ve cracked the rules. They invest their newfound wealth into the next “sure win opportunity” and hand their winnings right back to the market.
Hyped Tokens
Charts of some of the mega hyped CT coins/tokens
While the crypto market is often driven by hype, reality often presents a different picture. Let’s look at some examples of the larger tokens that have been hyped and their price changes:
THIS：
Peak price: about $1.5
Current price: approximately $0.3762
Decline: More than 75%
JUP：
Peak price: about $1.8
Current price: approximately $0.9405
Decline: Nearly 50%
MEME：
Peak price: about $0.06
Current price: about $0.0134
Decline: More than 75%
WANT:
Peak price: about $21
Current price: about $6.165
Decline: More than 70%
These examples are just part of the tip of the iceberg. I could show you charts that look like ski slopes for days, but you get the idea. And it’s not just the big projects that are suffering. These charts are all over the crypto market, from the top of Coingecko to the obscure gems you find in the depths of CT (or pump.fun these days).
The entire market is playing musical chairs, and when the music stops, you (the average investor) are left to take the hit. The common thread here? The “diamond hands” hanging on to their junk. They bought into the hype, trusted the “fundamentals,” and are now suffering from unlimited downside risk. The lesson of this story? In crypto, what goes up must come down — often faster and harder than it went up.
Another person behind the screen
One of many public ultra-liquid vaults operated by CT characters
Human Motivation:
Like everyone else, KOLs often prioritize their own interests. They may have undisclosed investments in the projects they promote.
Selective sharing:
It is human nature to broadcast successes and downplay failures. This creates a bias against a KOL’s past record.
Herd mentality:
CT can become an echo chamber that amplifies hype and fear of missing out. KOLs are just as susceptible to this as their followers.
Personal bias:
Everyone has their own biases and blind spots. KOLs are not immune to cognitive biases, such as confirmation bias or the sunk cost fallacy.
Behind every tweet is a person with their own goals, fears, and limitations. While some may offer valuable insights, it’s important to think critically, do your own research, and make decisions based on your personal circumstances rather than blindly following any single voice in the crypto space.
The power of stable income
Now, you might be thinking: “But what if I miss out on even more upside? Or that 1,000x gain!” This is a valid concern, but let’s consider the benefits of a steady income strategy:
Realized Profit:
By taking profits at predetermined levels (such as 100% to 200%), you convert potential gains into actual, realized profits that cannot be taken away by a falling market.
Emotional stability:
You avoid the emotional roller coaster of watching gains soar and then plummet. This psychological benefit cannot be underestimated in trading.
Capital Protection:
Your initial investment is protected early on, reducing the risk of losing money.
Reinvestment opportunities:
By taking profits, you have capital available to reinvest in new opportunities, rather than having all your money locked up in a declining asset.
Continued Growth:
While you may miss out on the absolute highs of certain trades, consistent application of this strategy can lead to steady portfolio growth.
Think about it: if you applied this strategy to the aforementioned tokens and took profits when gains reached 100%, you would have locked in nice profits and avoided significant losses later on. Yes, you might have missed out on some additional upside in the short term, but you would have preserved capital to reinvest in the next opportunity.
Remember, the key is not to catch every high, but to consistently grow your portfolio over time. This strategy allows you to do that without the constant pressure of trying to catch every rising high.
Psychological factors
One of the biggest challenges in implementing this strategy is psychological. Crypto markets are often driven by hype and the hope of getting rich quick. It’s easy to feel like you’re missing out when you see others showing off huge gains. Keep the following in mind:
Many of these large gains are unrealized and may disappear as quickly as they appeared.
For every trader boasting of huge profits, there are probably many more who have suffered significant losses.
Ongoing, realized gains are far more valuable than potential, unrealized gains.
Implementation strategy
What can we do to achieve more consistent returns while mitigating downside risk?
Set more realistic goals:
Instead of chasing 10x or 100x gains, set more realistic goals, such as 100% to 200% profit per trade. In the volatile world of crypto, these goals are usually achievable in a shorter time frame.
Stay alert:
Set price alerts and take quick action when your targets are reached.
Stay Informed:
Pay attention to trends, new protocol launches, and potential airdrop opportunities. However, don’t let every piece of news or social media hype influence your core strategy.
Learn more about the token:
Before making a decision, understand its token economics, staking schedule, and any potential lock-up periods. This knowledge can help you predict potential price fluctuations.
By moving away from the gambling mentality that many people have in the crypto space and instead embracing these strategic principles, you will set yourself up to outperform the masses in the long run. Remember, while the crypto markets offer the potential for quick profits, the principles of wealth creation remain applicable in this new and volatile market.
Real World
While the crypto markets offer the lure of getting rich overnight, it’s important to remember that even in this volatile space, sustained wealth accumulation generally follows a more solid path. Let’s consider some key principles:
Consistency is better than luck:
In the long run, strategies that consistently generate gains will often outperform occasional big wins. This is as true in crypto markets as it is in traditional markets.
The Reality of Wealth Accumulation:
While the crypto dream is to get rich quick, most of the substantial wealth, even in this space, has been built through:
Make continuous trades or investments over time
Reinvest profits to compound growth
Patience and strategic long-term thinking
Smart risk management and portfolio diversification
Market cycles and patience:
The crypto market moves in cycles. Those who are able to remain patient and stick to their strategies through different market phases tend to achieve better results.
The power of compound interest:
This is not just a concept in traditional finance. In the crypto market, consistently taking profits and reinvesting them can lead to significant wealth accumulation over time.
Embarking on the "boring" road to success
In a market that often praises volatility and risk-taking, a strategy that advocates for consistent small gains may seem boring. However, experience shows that this "boring" path is often the most reliable path to long-term success in crypto trading.
Yes, we all need some dopamine and the occasional gamble for fun. There is no shame in allocating a small portion of your capital to high-risk, high-reward investments. But for the majority of your trading activity, embracing the power of consistency and compounding is more likely to yield better results over time.
Remember, in the world of crypto trading, consistent profitability is far more impressive — and more profitable — than occasional good luck. By focusing on steady growth and risk management, you set yourself up for long-term success in this exciting and evolving market.
