Self-summary of a cryptocurrency player
I saw this article on Twitter and thought it was well written, so I shared it with you:
Recently, I really feel that one day in the cryptocurrency world is like one year in the real world. There are many opportunities and information. I am buried in various information piles every day to see what this big V says and what that big V recommends. From time to time, I check the list of gains to see how much a certain coin has risen!
Today, I saw that in our group, more than a dozen people mentioned CFX. I always fantasize about how good it would be if I bought it myself. Is this the case for you? [Can you hold on to it if you buy it?]
For some people who have the ability and methods, the clarity of blockchain lies in the fact that good projects can be seen without much effort. You can see the bottom layer, the source code, and make your own plan based on the current popularity, direction, and sector.
For most retail investors, they do not have these abilities. All they can do is learn from others to download Twitter, Telegram, and Weibo to see everywhere. What the cow said, what the horse said, and then buy it if it feels okay.
People who are losing money always ask those who are making profits if they have any secrets. This is a very normal psychology. People always hope that there is a so-called secret that can make them harvest easily. However, the more basic rule in life is: there is no secret in life. Only if you work hard and use the right methods can you receive some joy from life. Success is so difficult, no matter what industry.
Therefore, the currency circle really responds to the saying: "The strong will always be strong, and the weak will be weaker." [The richer you are, the easier it is to make money]
So, if you want to make money, please put away your restless heart! Otherwise, you will definitely have the situation of "making money by luck and losing money by strength".
Wealth is what I like, but I have to get it from the Tao to feel at ease. It will be much simpler to find your own Tao!
Regarding finding value targets, let's use a person as an example. I am stupid and used to using some stupid methods to find value targets. Whether it is long-term or short-term, I have followed the following points.
When judging the quality and investment value of a currency, it involves:
1. The ecology in which it is located. [The development space occupied in the market]
2. Fundamental trends and chip situation. [Determine the timing of entry]
3. Project team, investment lineup, market evaluation. [Own strength]
4. Whether the role played by blockchain can become a rigid demand. [Determine whether it is worth investing]
5. Investor psychological analysis and institutional nature. [Knowing that the market is cruel and being able to face it calmly]
1. Determine the ecosystem. I am used to opening a non-small account and directly viewing the currency profile. Then check its website, Twitter, white paper, and make simple notes. At the same time, make certain benchmarks with the leading currencies in the same ecosystem.
2. Fundamental trends, you can find a relatively low entry through the chip platform and fundamental trends of the previous market. [A good entry point will determine your profit space and carry space. The profit and loss ratio will be more cost-effective. ] The target selection is also based on this method. [After making a reasonable target position and making a decision to reduce holdings and clear positions, you don’t have to suffer from the market. This is the best way to prevent more losses than profits. 】
Third, through the official website of the project party, some articles by big Vs who specialize in this project, and information resources in the circle, you can understand the project party team and the lineup of investors to a certain extent. So as to roughly understand the strength of the project party itself. Only with strength can you have a more stable development space.
Fourth, the positioning of the project itself will divide the project itself into: serving the blockchain/served by the blockchain. This is very critical! The project itself that serves the blockchain has a rigid market demand, and it is easier to create its own hematopoietic function, and will not rely on the market to assist in development. [Similar to cross-chain, oracle, and basic protocol. ] And the projects served by blockchain technology often rely on market heat and hype to develop. [Similar to Lianyou Metaverse, this type is served by blockchain technology. Because its own hematopoietic function is very poor, it is impossible to make sustainable profits, and it is often difficult to have long-term development. ]
Five, the mind of market investors and the nature of institutions. While the project itself is based on development, it is also the main tool for profit. The rise in the market is a game between investors and institutions in many processes. Eliminate the same mentality as most investors. From the perspective of institutions, you will see many danger signal warnings.
These are the most basic points to understand the project itself. It requires accumulated experience over time and must not be impetuous. It doesn’t matter if it’s a little slower. Only by making progress every day can you slowly become a player who understands the blockchain.
A reasonable blockchain player operation:
(1) 10% rule. You should aim to earn 10% from your investment portfolio each time. You'll never have to worry about running out of money. For example: If you hope that each time you invest, you can have 600,000 yuan to maintain living expenses, then you should first accumulate an investment principal of 6 million yuan. Some people say it should be 30%, others say it is 20%, but the current mainstream calculation is 10%.
(2) Rule of 10. If you invest 1 million yuan now, how long will it take to double it? "10 times principal doubled".
(3) 5-year rule. If you want to be conservative, don't use money you expect to need in the next 5 years. If you want to be more aggressive, don't invest money that you will need within the next 2 years.
(4) Maintain the average return rate of the stock market. On average, the currency market has a solid annual return rate of about 150%-220% during its life cycle. If you prefer an aggressive investment profile, set your goal to 300%. If you want to be more conservative, you can book at 80%. Also don’t forget to account for the effects of inflation.
(5) 5% rule. Please do not let any one coin account for more than 20% of your investment portfolio. It's risky to tie your net worth too much to a single currency. Please limit your investment portfolio to less than 15% to hedge your risk.
(6) 50/30/20 rule. The long-term average return rate of long-term, band ambush and current hot spots can be allocated according to the following positions as a target. – Long: 50% – Band: 30% – Hot: 20%.
Although, the above-mentioned rate of return is very easy to achieve in the currency circle. But we must also correctly examine market risks and maintain a reverent heart, so as not to make mistakes.
#anti-fraud tips: correctly examine market risks and make profits with minimal risk.
