Why should you focus on fewer cryptocurrencies and avoid being a 'Netcaster'?
In the cryptocurrency world, many newcomers believe that casting a wide net and holding many coins is a good strategy for 'diversifying risk.' Little do they know, this approach can easily turn you into a 'crypto brick mover,' staying busy yet not making any money.
1. Concentrated efforts outperform scattered forces
There are over 23,000 types of tokens in the crypto market, with 50 new tokens added just in the past day. Can you keep up with the research? The vast majority of altcoins have an average lifespan of less than six months.
Data shows that 90% of tokens lose over 70% of their market value within a year. So instead of 'blind boxing' with unknown coins, it's better to focus on potentially promising coins that have consensus and delve deeply into them.
2. Are you really able to keep up?
Suppose you monitor 10 coins, spending 10 minutes each day reviewing their market trends, that would require 100 minutes; then back-and-forth operations, averaging 5 minutes per coin, would take at least 2 hours a day. In the end, you realize you've spent the whole day without even finishing the whitepapers of the coins.
For example:
Last year, a friend of mine in Yudong cast a wide net and bought 50 tokens, but only 2 were profitable, while the other 48 lost money. By the time he realized, those 2 profitable coins couldn't recover the losses of the other 48. The result of 'casting a wide net' is 'widespread losses.'
3. Data doesn't lie
Research from Glassnode indicates that long-term profitable investors often hold no more than 5 types of tokens because:
• They can conduct in-depth research on projects and understand the fundamentals.
• They won't miss market trends, reducing operational errors.
• With concentrated effort, it's easier to capture bull market benefits.
4. To put it humorously, what happens when you cast a wide net?
Crypto netcasters have a common trait: they never buy enough of the coins that rise and always hold a full bag of coins that fall. The result is holding a bunch of worthless coins while cursing their wallets. Remember that joke? 'I hold 100 types of coins, and when others ask what I invested in, I say, 'I have everything, just no money.'
Final suggestion
Focus on a few promising sectors or coins and learn to subtract.
'Investing in crypto is like farming; it's not about how many seeds you cast but about how much grain you can harvest.' So, put down your netcasting mentality and focus on becoming a 'harvest expert.'
There are many opportunities in the crypto world, but only by concentrating can you unlock your wealth code!
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