The cryptocurrency market has experienced 4 halvings so far and completed 3 complete bull-bear cycles
Before this bull market started, I often heard such voices: It is easy to make money in a bull market, just buy at a low price, and everything will rise when the bull market comes
But now such voices are becoming less and less
I believe that the facts have told us that it is becoming more and more difficult to make money in the cryptocurrency bull market
Even friends who have experienced the bull market before, who habitually want to "copy and paste" to buy and wait to make money, have found that this round of bull market does not seem to work, and the market trend is simply incomprehensible
Since last year, I have often mentioned in my sharing that it will be more difficult for retail investors in the cryptocurrency market to make money in the future, and the invisible threshold for investment professionalism is getting higher. The era of wanting to buy and try your luck is over. We should improve our abilities as soon as possible, and we will be better
Understand why it is said that it is getting harder and harder to make money in the cryptocurrency market?
There are three reasons for the collection
First: The industry has a higher threshold for investors
The previous simple ICO model, issuing white papers, does not require too much technology, does not understand the fundamentals, and dares to rush to meet one, and you can also taste the sweetness of a fly leg
Now the industry's technology, fundamentals, and infrastructure are constantly breaking through. For retail investors, they have to spend a lot of effort to understand the terms, and they can't understand more professional things. If they don't take the initiative to seek breakthroughs, their previous experience alone is not enough to support the rapidly growing market
Second: Industry diversification, investment selection is more difficult
In the early days of the industry, there were few sectors and projects of currencies, and the narrative was relatively simple. For example, there were only 3-5 sectors before, and there were only a few currency options in each sector. The market's heat, funds, and people were easily piled up to form a profit-making effect. Now there are many sectors, and there are thousands of projects in each sector.
But there may only be 1000/1 of the coins with real investment potential, and retail investors have limited funds and resources, so choosing coins is like looking for a needle in a haystack.
Third: The era of institutions is coming.
The entry of Grayscale in the 2020 bull market was a sign, and then in 2023, BlackRock applied for BTC spot ETF, leading a group of big players in the traditional financial market to enter the market.
The market has become more complicated. The previous market trends were relatively simple. With fewer people, it was easy to divide the cake. With more people, things became complicated. Therefore, many people said they couldn’t understand this round of bull market.
The above three points are the summary of objective external factors
But because of these reasons, no one in the market makes money?
No, there are still people making money, but I don’t know if that person is you
If you are interested in this, you can study the mysterious market cycle theory, which is very magical. Cycle theory is an amazing tool. No matter which field, it cannot escape the law of cycles, and the cryptocurrency field is no exception.
