As an old OG, I want to say that in the cryptocurrency circle, don’t talk about what ifs, because every day is a new day.
I entered the circle in 2017 and missed two waves of bull market. This is the third wave. I would be lying if I didn’t regret it. I missed ICO and DEFI, which made me lose my mentality and failed to keep up with the pace of industry development. I even stayed away from the cryptocurrency circle for a while. The worst thing is that I almost lost all the investors’ money.
Now I particularly agree with this statement: You can never make money beyond your knowledge.
When you reflect, think about why you got into the circle in the first place. Yes, it was the desire to learn, which stems from the interest in all new things. In fact, when new things fail to arouse your interest, or when you intentionally or unintentionally despise them and don't understand them, or don't bother to look at them, you should reflect on yourself, which also means that you are old.
I remember my first contact with Bitcoin came from attending a conference related to Bitcoin, where Li Xiaolai gave a speech; he is a big figure in the crypto world. There was also an introduction to a certain mining machine, and I almost invested money to buy it. I can't remember now why I didn't buy it; it might have been for economic reasons, and later I just gave up.
Re-entering the market was in 2017, during the ICO frenzy, money came too easily, and as the saying goes, in the end, it was lost through strength. After experiencing the ups and downs of the crypto market, I share some hard-earned experiences. The crypto market is full of opportunities but also hides risks; I hope these insights can help you avoid some detours.
1. Emotions are the biggest enemy
In this market, the biggest enemy is not the market itself, but your own emotions. The crazy FOMO (Fear of Missing Out) in a bull market and panic selling in a bear market can lead to significant losses. Remember: when everyone is frantically chasing prices, stay calm; when everyone is in a panic sell-off, learn to think independently.
2. Always do a good job in risk management
Never invest more than you can afford to lose. Funds should be relatively diversified; don’t put all your eggs in one basket. Those who easily go All-In should think twice.
Set stop-loss levels and strictly adhere to them; this is key to survival. Always keep sufficient cash reserves for yourself.
3. Safety comes first
Use hardware wallets to store large assets. Backup your private keys and mnemonic phrases, but never store them online.
Be vigilant against various scams and remain skeptical of all 'amazing returns.' Use reliable exchanges but do not store too many assets on exchanges.
4. Continuous learning is essential for survival
The crypto market changes rapidly; only continuous learning can keep you up with the times. Pay attention to industry dynamics, study technological developments, and understand policy changes; all these are essential courses. But remember, information must be obtained from multiple channels to establish your own judgment system.
The crypto market is a high-risk, high-reward market, capable of making someone rich overnight or leading them to bankruptcy. But as long as you remain rational, manage risks, and keep learning, you can find your place in this market.
Finally, in this market, surviving is a skill. You can incur losses, but you must stay at the table.