Source: Talking about Li and other things
Many people enter this field hoping to get rich overnight, but it is recommended that you just think about such things. If every ordinary person who enters this field can easily get rich overnight, then there will probably be no poor people in the world.
It can only be said that compared with the traditional financial field, the encryption field is still in a relatively gray area, so there are many speculative opportunities hidden in it, especially during the bull market, it is common for many projects to increase several times or even dozens of times a day, and some MemeCoins can even increase hundreds or thousands of times in a few hours.
Overall, people in this field (mainly retail investors) currently accumulate wealth mainly through the following ways:
- Holding tokens that have a high probability of increasing over time (such as BTC)
- Speculative trading of tokens that have a short-term rapid growth (such as some altcoins or MemeCoins)
- Use DeFi and other methods to obtain relatively high annual returns
But from past experience and observation, among those who try to participate in speculative trading of tokens that grow rapidly in the short term, perhaps only 1% can actually make a lot of money in the end.
After entering this field, many people are always easily influenced by various news and opinions of others (such as KOLs). Then, when they see something popular, they immediately get involved and end up becoming the bag holder again and again without realizing it.
In previous articles of Hualihuawai, we have always suggested that you should focus on the 1-3 sub-sectors that you are most optimistic about, so as to discover and plan possible opportunities in advance. In other words, we need to pay attention to those strong narratives that we are optimistic about, such as AI, RWA, DePIN, Memecoin, etc., and then look for possible opportunities in them, rather than blindly buying whatever others say is good or ask you to buy.
Or we can change our perspective and think about it in reverse. Instead of taking higher risks and chasing after things that everyone is chasing after right now, it is better to pay more attention to things that people complain about again and again. Maybe you will eventually find a better opportunity.
Many people always focus on the present, but fail to see the future, and are always worried about the gains and losses of some current things. To give a simple example, since this cycle, Bitcoin has risen and fallen from the relative range of $15,000 to the current $91,000. In every previous rise, many people were waiting for a callback, and vowed to get on board as long as there was a callback. In every previous decline, many people continued to wait and see, forgetting the previous vows, so they waited and waited, and watched Bitcoin go to where it is now.
In this kind of thing, we should think more about and understand the concept of time frame. Many people claim to be long-term investors, but in the end, their so-called long-term investments can only last for a few weeks or at most a few months. If your perspective can only see a few weeks or a few months at most, then you may become anxious about gains and losses. In fact, those things that seem to be downward in the short term may have higher potential if placed in a wider space (globally) and a wider time. For example, even if Bitcoin falls from $91,000 to $81,000 next, we cannot deny that it will reach a target of more than $100,000 in the future.
Holding tokens that have a high probability of growing over time is the golden rule for you to get reasonably rich in a bull market.
Since the 2022 article, Huali Huawai has been sharing our own fixed investment plans and strategies, and recommends that at least 50% of your position be invested in Bitcoin. In a bear market, insist on fixed investment, and wait patiently until the bull market to sell in batches. This is a rule of getting rich in a bull market that almost everyone can understand, but after my observations over the years, there are actually not many people who can really stick to it and do this.
Of course, I can understand this. After all, in the first two years after I entered this circle, I had the same speculative mentality as most people and could not resist the various temptations of the market.
But this matter has its pros and cons. Different positions may lead to different perspectives. For example, if you ask someone with only tens of thousands of dollars to patiently invest in the crypto market for four years, it will be difficult, as it is inconsistent with their expectations of crypto market opportunities. And for those who can do this, they may also face limitations in thinking and strategy, resulting in missing out on some new opportunities.
There are some things that I will choose to miss on purpose, so I don’t envy those so-called permanent earners, meme-type rich players, etc. I don’t care much about such things. I think that many things themselves don’t have the so-called right or wrong, and the one that suits you best may be the right one.
The recent crypto market has obviously started to heat up again. Many people now ask me to recommend some MemeCoins that can make them rich, but I cannot recommend them directly. The only thing I can do is to share some things based on the methodology through Hualihuawai.
Your wallet is your own, especially when you are in a very risky field. When you open your wallet, you expect others to fill it with money for you, but in fact, more people just want to cheat you out of your principal.
Except for some highly professional traders, for most ordinary retail investors, if you want to make money in a bull market, you should always focus on your own goals and avoid blindly chasing those short-term hot spots. You must know that things that rise quickly may also fall quickly.
Of course, different people have different positions. If you are positioned as a long-term investor, then try to avoid market noise. If you are positioned to make short-term profits, then try to improve your ability to obtain and organize information, actively explore the market's hype points, and be careful not to confuse hype with actual value.
Hype may cause prices to rise rapidly, but lasting growth can only come from underlying real value. Many people always like to pursue low-market-cap projects, but you need to ask yourself first, taking DEX as an example, what are the advantages of those low-market-cap DEX projects compared with similar projects that have become unicorns? This will determine whether you are speculating or investing in value.
The key to success in speculation is that you need to participate and enter earlier to get a greater chance, because people who come in later will take over for you. Entering earlier often requires your own knowledge accumulation, understanding ability, and research energy to discover the potential opportunities. You can't get the answer by just asking others.
And there is another point. Compared with the traditional financial field, the crypto market is changing very fast. Many so-called historical experiences may not be completely accurate when applied to the present. Each cycle has its own different manifestations. The success of previous bull markets may not be a reliable model for the current bull market strategy. While maintaining the basic strategy unchanged, we also need to learn to adapt to circumstances and constantly supplement and improve our knowledge and theoretical systems.
I use Notion to record at least 10,000 words of thoughts or notes every week. This is to get closer to the market, understand the market better, improve my knowledge and theoretical system, and make myself more patient and focused. At the same time, choosing to output part of the content through the official account platform can also be regarded as a closed loop of knowledge. I believe that only input + output knowledge can form effective positive feedback and accumulation.
In short, as a market that changes rapidly 24/7, we need to constantly understand and analyze the market and pay close attention to the flow of funds. Investment is not achieved overnight. We should not only make good use of the current bull market, but also make good use of every cycle, be friends with time, stay focused, keep thinking, and stay patient.
At the end of the article, let’s talk about security issues.
Today I found that many friends are discussing the theft of DEXX. It is said that the stolen assets are at the level of hundreds of millions of dollars. Many users have suffered heavy losses. One theory is that the project owner stole the funds (it is said that the DEXX project owner is in Hangzhou, China). Another theory is that the server where DEXX stores user private keys was hacked. Some people even found that the DEXX private key was transmitted in plain text, as shown in the figure below.
I have used this tool several times before, and I have authorized a small wallet to query data. To be honest, the data listed in it is quite comprehensive. If you don’t consider the transaction function, it is also a good on-chain data query tool. Many KOLs have frequently promoted this tool before, and it is a pity that it has been stolen now. If you are still using this tool APP, it is recommended to uninstall it in time. If you have saved mnemonics or private keys in your mobile phone (or you have copied and pasted mnemonics), it is recommended to check your wallet in time. For safety reasons, transfer the assets that can be transferred to the new wallet in time.
For such on-chain tools, my personal daily habit is to view them through the web version. I basically don’t download the APP of such tools, and I will only authorize small wallets or test wallets. Small wallets mainly store a little assets (usually tens to thousands of dollars) for daily interactive experience, such as gas fees, while test wallets are basically empty, mainly for accessing and authorizing some on-chain tool websites for data query purposes. In addition, I currently mainly use 3 iPhones, two of which are used as "cold wallets" and one is dedicated to the currency circle, but only a few essential applications such as Binance, OKX, and Trust are installed.
The above are my personal usage habits, for your reference. In this field, there are two main ways to lose money. One is that you buy a certain coin and lose it, and the other is that your money is lost (stolen or defrauded). If you lose money by buying coins, you can still curse the project party, but if it is because your wallet is stolen or defrauded, you can only reflect on it silently.
In fact, the topic of safety has been sorted out many times in Hualihuawai’s previous articles, and we have also made a lot of reminders on safety precautions in the “Hualihuawai Toolbox”, as shown in the figure below.
In short, we must always manage our risks and emotions and find the most suitable way to accumulate wealth. We are fortunate to be able to enter this field now, which is lucky for many people. This industry still has a long way to go in the future, and there are still many new opportunities waiting for us to explore. Don't let yourself get lost in the darkness before dawn.
Today is Saturday, so let’s just chat about this and wish you all a happy weekend.
Note: The above content is only a personal point of view and analysis, which is only used for learning records and communication, and does not constitute any investment advice. If any project or website is mentioned in the article, it has no direct interest relationship with Hualihuawai (Hualihuawai does not accept any advertisements from any project party). Please evaluate the security of the corresponding project or website by yourself. Investment is always risky. Don't enter a game that you don't understand, and don't play a game that you can't afford to lose.
