4. The True Awakening of Wealth: How to Avoid "Cryptocurrency Paper Wealth" Turning into a Dream?

After numerous lessons from bubbles, if we can still stay sober, we need to think about how to distinguish between "floating profits" and "realized gains" amidst the rise and fall of the cryptocurrency market.

- In-depth research on project fundamentals

In today's increasingly mature cryptocurrency market, whether it's tokens or any investment target, thorough research should be conducted on aspects such as business models, profitability, competitive advantages, and industry prospects.

- Beware of extreme optimism in market sentiment

When everyone is shouting that "this market will never fall" and "this is a once-in-a-lifetime opportunity," it often indicates a dangerous sign.

- Moderate profit-taking and risk management

If the tokens you hold rise too excessively in a short period, it may be time to gradually sell off some shares to lock in part of the profits. This way, even if there is a continued rise afterward, you won't walk away empty-handed. You can leave a certain position to "bet on possible continued growth," while ensuring that your principal or existing profits are not completely wiped out.

- Maintain diversification in asset allocation

Do not gamble all your funds into the cryptocurrency market just because the potential profits can be huge. Once a black swan event or bubble bursts, your wealth could be destroyed in one fell swoop. A reasonable asset allocation, supplemented by periodic rebalancing, can allow you to survive longer amidst market fluctuations.

- Learn to listen to "unpleasant but loyal advice"

During market euphoria, the voices of following the trend and flattery can drown everything out, while those who warn of risks are often mocked or excluded by the group. However, it is precisely these "alarmist" unpleasant but loyal pieces of advice that can save you at critical moments.