I just had tea and chatted with a big shot in the industry, every word is classic! I've summarized the following points for my brothers, you must read it all! It will definitely be of some help to you!
The secret to making money in the cryptocurrency world: uncovering the differences between top experts and ordinary people. In the cryptocurrency market, whether one can make money is actually easy to judge. Just observe the people around you and the discussions they have, and you can discover some interesting phenomena that can help you determine who can profit in the cryptocurrency world.
Traders can generally be divided into three levels: ordinary traders, skilled traders, and top experts.
Ordinary traders usually spend a long time discussing price fluctuations of 1% or 2% in communities, even thinking that the market has surged or plummeted, with extreme emotional highs and lows. They often argue endlessly about these minor fluctuations, staring at the market all day long, afraid of missing any slight changes.
Skilled traders are slightly better, but when the market fluctuates by 10% or 20%, they also begin to feel anxious or excited. You can tell from their expressions or conversations whether the market is rising or falling; they are constantly conflicted about whether to increase their positions or sell.
As for top experts, after buying at the bottom, they hardly look at the market frequently anymore; they only occasionally check to confirm whether the trend has reversed. Their emotions only fluctuate slightly when the price is halved or doubled; otherwise, they behave as if nothing has happened, going about their normal activities like eating, drinking tea, and having fun. As long as the overall trend doesn’t change, they won’t have any worries.
Top experts often have a profound understanding of human nature. They know the weaknesses of human nature and understand that these weaknesses are hard to overcome. Therefore, they reduce the frequency of checking the market because the more they look, the harder it is to resist the weaknesses of human nature. Human emotions are dynamic; there is one mood when prices are rising and another when prices are falling. If one cannot control their emotions, they will be swayed by them, leading to actions that deviate from their original plans. Top experts understand when to be greedy and when to be fearful.
When the market is surging wildly, one should feel fear, but most people choose to increase their positions at this time; in reality, they are not increasing their positions but feeding their inner greed. When the market is crashing, it should be the best time to layout positions, but many choose to cut losses; what they are cutting is not their positions but the fear within their hearts.
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