After entering the cryptocurrency circle, many people start to wonder as they continue to lose money: How long do they need to trade in this market, 1 year? 2 years? Or one or two bull markets before they can start to make a profit? Many people believe that as long as they have enough time or a bull or bear market, they will accumulate experience and make money.
However, the reality is often not as expected. Even after one or two years, or even one or two bull markets, many people are still confused about this industry. Many investors who entered the cryptocurrency circle in 2016-2017 are still wandering around in the group of leeks. Although they talk a lot, the numbers in their accounts cannot hide the fact that they are losing money.
I think whether you are profitable or not has no direct relationship with how long you stay in the cryptocurrency circle. No matter how long you stay, if you keep walking on the wrong path and fail to master the right method, you will only fall deeper. At first, you may lose your spare money, then your assets, and finally you may even go bankrupt due to borrowing and investment, and fall into despair.
Therefore, what really allows people to make profits early is not time, but whether they can master a set of correct methods. Some people enter the cryptocurrency circle and speculate on cryptocurrencies based on news. After losing money, they think that the news is inaccurate, so they change circles and continue to listen to news. However, after several years, they still do not understand the core logic of transactions, nor do they really understand the value of blockchain. They just regard it as a speculative industry.
As Buffett once said, "Successful investors must not only have good company analysis skills, but also be able to isolate themselves from the emotional interference in the market in order to succeed."
This sentence can be broken down into two points:
First: You must have the ability to analyze the value of a company.
Blockchain is similar to the stock market. Behind every token we buy, there is an entity. For example, ETH is a public chain, equivalent to the Android system; BNB represents an exchange, similar to Nasdaq; AAVE is like a traditional bank, which can obtain loans by pledging cryptocurrencies.
Therefore, investors need to think carefully about whether they really understand the value of the currency they hold. What is the financial status of the company? Is the debt too high? What is the potential for future revenue growth? Is it in line with the overall trend of blockchain development? If these questions are not clear, it is impossible to evaluate whether the current price is overvalued or undervalued, let alone judge the future increase and sustainability.
Second: Avoid being influenced by market sentiment and short-term market conditions and making wrong decisions.
Many people are easily affected by market sentiment. When the market goes up, they blindly chase the market. When the market goes down, they think the market is rubbish and dare not enter the market. In fact, this behavior is caused by not understanding the market.
When the market is falling, some people dare to buy at the bottom at first, but after each failure, they finally dare not enter the market again. When the market rises, they continue to buy more, and finally buy at the high point and lose money. After that, when the market rises slightly, they are eager to leave the market for fear of being trapped again.
If you cannot understand the market, you will not be able to determine when to enter and when to exit the market, nor will you be able to identify the top signal, and therefore will not be able to obtain the maximum benefits brought by the market.
So, why do some people still lose money after entering the cryptocurrency circle for several years? The reason is simple: they have no ability to screen high-quality coins, and the coins they buy are all based on news. They cannot identify the bottom of the market and always chase high prices after the rise.
However, if there are professional institutions to help screen currencies, provide detailed research reports, and learn about the market to determine when the bottom and the top are, will such investors still worry about not making money?
Ultimately, whether you make money or not does not depend on how long you have been in the cryptocurrency circle, but on whether you are willing to improve yourself. If you never improve yourself, you are destined to become a leek in this market.
