If Xiaobai doesn't lose money, who will?
Newcomers to the cryptocurrency world usually make a loss first as a sign of respect.
If you want to enter the cryptocurrency world, you must read this article completely and read it repeatedly. It can improve your understanding of the cryptocurrency world.
Half a month ago, Lao Liu's brother-in-law said that he also wanted to enter the cryptocurrency circle and buy some coins, and asked Du Ge how to invest. The brother-in-law knew that Lao Liu made his first pot of gold by speculating in coins, and he was one of the few people around him who had in-depth research on cryptocurrencies. The brother-in-law was born in 1995, young and promising, and he owned two large hotels, both of which were doing well. He planned to take out 1 million yuan to play with coins first. At the dinner table, Lao Liu learned that he wanted to get several times the income from playing with coins, the kind that would make 3 million yuan by investing 1 million yuan, otherwise he would feel that it was meaningless if the profit was low, and making hundreds of thousands of yuan would not quench his thirst. In response, I poured a basin of cold water on him and warned him that the first thing to do when speculating in coins is to "not lose money" and not to want to double it right away.
The ones that can multiply several times are altcoins. Altcoins are not suitable for large capital investments; using 50,000 to play around is fine. If you make a profit, it's great, and if you lose it all, it's no big deal. For 'big investments,' the first choice is a stable strategy, and the most stable cryptocurrency in the market is undoubtedly Bitcoin. He asked if it’s a good time to enter Bitcoin. Tianji asked: 'Are you a long-term investor? Someone who can hold for several years.' He said no. Lao Liu said: 'Then you can only wait, wait until Bitcoin drops to 30,000 USD before entering. The price of Bitcoin will definitely reach 1 million RMB and will also reach 30,000 USDT; nobody can buy at the lowest price and sell at the highest price. Bitcoin is eternal. Each of us is destined to accompany it for a period of time, and during the time we have it, Lao Liu hopes it can bring you profits.
Lao Liu often encounters some newbies wanting to enter the cryptocurrency space without much understanding of it or practical experience, only seeing many myths of getting rich in crypto and hearing that it can be quite profitable. They consider putting a few thousand dollars to test the waters. If you really want to enter the crypto space, testing the waters with a few thousand isn’t out of the question, provided you are prepared for losses!
Why?
First, today is different from the past. The current cryptocurrency ecosystem is becoming increasingly mature, having moved past the stage of barbaric growth, and there are no longer low-priced Bitcoins. If you invest a few thousand dollars to buy coins, the chances of a hundred or thousand-fold increase are almost nonexistent. Look, when has Bitcoin's price increase exceeded ten times in the past few years? Two years ago during the bull market, it only increased a few times. Now the price of a Bitcoin is already at an unusual level.
Second, there are more traps than opportunities. Since there’s no chance of getting rich by buying Bitcoin, you might think of buying some cheap new coins, as the previous Dogecoin and Shitcoin also increased by a hundred or thousand times. However, the cryptocurrency world is always more about traps than opportunities. The new concept coins you are optimistic about, the model coins, 99.9% are traps designed to rip off a wave of investors. Some coins peak immediately upon release; if you see it skyrocketing a thousand times today, if you buy it, it might drop 50%. You can't bear to sell and hope it will rebound, then it drops another 50%. If you still hold on to your beliefs and it drops another 50%... after several rounds of decline, you will be honest. At this point, your account balance is nearly gone, and you think that you can only hold on. But after a while, TMD, the coin actually goes offline... Buying expensive items generally won't get you scammed. Conversely, buying cheap items greatly increases the chance of being deceived. Giving up your intelligence, the market has already helped you filter. In fact, that kind of coin with explosive potential that you can buy and hold once in a lifetime is akin to a miracle.
Third, low self-awareness.
In the cryptocurrency world, there are various concepts and coins, and you don't know the attributes and value of each coin. You rely solely on the K-lines drawn by the market manipulators. If a coin rises today, you rush to follow it; if a coin falls, you rush to sell it. If you win, you think you are a gambling god; if you lose, you curse the market manipulators. Without your own objective judgment, this leads to frequent trading, making it difficult to make money in the end. Additionally, the various bearish and bullish news in the cryptocurrency world can be dizzying. What you see is only what the big players want you to see.
Fourth, immature trading.
When trading, one goes all in; when all in, one gets trapped; when trapped, one cuts losses, resulting in actual losses. Alternatively, profits are not held, but losses are stubbornly held; there is no financial planning or averaging down strategy. If you want to get rich overnight, you’d better not come to the crypto space; because the mindset of 'getting rich overnight' is destined not to yield results in crypto. Nowadays, making money in the crypto space is not about taking 100,000 to bet on 1,000,000, but rather taking 1,000,000 to bet on 1,000,000 or 500,000.
Newbies entering the crypto space with a few thousand are likely to lose money, while those entering with a million have a chance to profit. In fact, the amount of money has little to do with profitability in trading, but it reveals some logical facts. These two statements may seem contradictory, but they are not.
Lao Liu comes to analyze deeply:
Newbies entering the crypto space with tens of thousands are mostly just testing the waters. The characteristics of novice coin traders are blind obedience; they buy a coin because Zhang San says it’s good, and buy another because Li Si says that coin has potential, following the crowd. Due to insufficient awareness and lack of market experience, their trading is immature, lacking in value investment and personal subjective judgment. Even if a newbie knows that buying Bitcoin is safe, they don’t understand why it is safe. Even if a newbie makes money from Bitcoin, they cannot resist the temptation to buy other coins, leading to losses. Another characteristic of newbies is the desire for quick money; clearly, the returns from investing in Bitcoin are not as high as those from other coins.
These are the problems faced by newbies! However, newbies who invest millions have a greater chance of making money. Just think, a newbie investing a million must have done some research on the cryptocurrency space before entering. Most importantly, they must have previously made a lot of money and likely have more. People who have made a lot of money have a better understanding of the logic of making money, know how to allocate funds better, and are better at self-control. They won’t make incorrect judgments due to short-term losses. Lao Liu has said before, trading coins is all about controlling oneself, and controlling oneself is the hardest thing in the world. Moreover, and most importantly, a newbie investing millions, even if they incur losses, still has more money to average down and ultimately achieve profits. For seasoned investors, the amount of money doesn’t necessarily correlate with profitability in trading. Therefore, seasoned investors find it easier to make money than newcomers, and wealthy individuals find it easier to make money than those with limited funds.
After reading this, if you still want to enter the crypto space, Lao Liu suggests you find an experienced trader to guide you. Learn how to deposit and withdraw coins, how to use hot and cold wallets, cryptocurrency knowledge, how to choose coins, coin value, when to enter and sell, trading strategies, etc. Entering the market blindly will make you pay a lot of 'intelligence tax' for your ignorance. Getting into cryptocurrency is very simple, but making money is very difficult, relying entirely on awareness and strength.
