The 80/20 rule + the true portrayal in the cryptocurrency circle: How to counterattack from being a leek?
In this world, nothing can escape the Pareto Principle - "80% loss, 1 draw, 1 win". In the financial market, especially in the cryptocurrency market, only 20% of people control 80% of the wealth. Only a few people can make a profit through cryptocurrency speculation, while the vast majority of participants become leeks. If you are currently facing losses and are confused and unwilling, you might as well reflect on it first: find the root cause of the loss and clarify a few key issues. This is the first step to cracking the law of the cryptocurrency market. Before starting the article, I would like to ask you a few questions for you to think about.
First ask yourself:
1. Am I one of the 20% or one of the 80%?
2. What qualifications do I have to make money in this industry?
3. Who is making money in this industry?
4. Have I studied seriously? Can my knowledge reserve surpass that of most investors?
5. Do I have the ability to think independently?
6. Is my investment strategy merely following the calls of group friends, bloggers, and KOLs?
7. In the face of the dealer's manipulation, can I remain calm in the midst of a storm?
The market is just a trading channel; the market itself does not generate profit. For example, in Bitcoin, during the process of buying and selling, Bitcoin itself does not generate profit.
The so-called profit from trading coins is the price difference generated during the trading process; in simple terms, if you can make money, it’s because someone else bought your position at a high price.
If you earn, someone must lose.
Assuming there are ten participants in the circle, each with 10 dollars. If a minority are making money, one person earns 2 dollars from the other nine, then this person has 28 dollars, and the other nine have 8 dollars: the game can continue. If a majority are making money, nine people earn 2 dollars from one person, then the nine people have 11 dollars, and the one person not only loses everything but also owes 8 dollars, and the game cannot continue. When a minority makes money, the market is sustainable; when a majority makes money, the market will collapse. It’s like a lottery, if most people win, the lottery company cannot continue operating. Only when the majority loses and the minority wins can the lottery company sustain its business. Therefore, the circle market will use all means to make the majority lose money.
How to become a winner in the crypto circle: 4 major rules for making money.
So, how can one join the ranks of the few who are making money? There are many reasons for losses in trading; the following six points summarize the key strategies. As long as you avoid contradicting them, you can stand out:
1. Accumulation Method: Suitable for both bull and bear markets. This is a seemingly simple yet highly challenging strategy, meaning you buy one or several coins and hold them for at least six months or a year. Although long-term returns can reach ten times, many newbies frequently trade due to volatility and find it hard to stick to it. Therefore, this is also the most difficult.
2. Bull Market Dip Buying Method: Suitable only for a bull market. In this strategy, use no more than one-fifth of spare funds to purchase coins with a market value of 2-10 billion dollars. If the first altcoin rises more than 50%, then switch to the next depressed coin. If you're stuck, patiently wait for the bull market to release, but be cautious in your choices.
3. Aggressive Accumulation Method: Suitable for long-term quality coins. Use liquid funds to set a buy price that is 10% lower than the current price, while also setting a sell price that is 10% higher than the current price to gain profit. Continuously adjust dynamically, seizing more opportunities based on market changes. Diversified investment: Avoid putting all funds into a single type. By diversifying investments across different coins and asset classes, reduce risks and increase profit opportunities, ensuring not to lose everything.
These days, I am preparing for the launch of a divine order!!!
Comment 168 to get on board!!!
Impermanence brings impermanence brings impermanence!!!
Important things are said three times!!!
If you are also a tech enthusiast and are delving into technical operations in the crypto circle, feel free to follow me.
