The Adult World Rules of Crypto: 18 Counterintuitive Survival Insights
Written by: Route 2 FI
Compiled by: Luffy, Foresight News
In the ups and downs of the cryptocurrency market, how can individual investors avoid becoming “market prey”? Crypto KOLRoute 2 FI combines personal experience to distill 18 practical lessons, revealing the harsh realities and survival logic of the crypto market.
- Don’t think that others will consider your feelings.
Even if you feel like you are part of a large community on crypto Twitter, you are essentially always fighting alone; this is a PvP game. In the market, everyone is self-serving.
- The information asymmetry on Twitter is extremely high.
Understanding the position of KOLs in the interest chain is essential for making informed investment decisions. By following the right people, you can gain a wealth of valuable information (alpha); blindly following the wrong people could lead to total loss.
- Believe in yourself
When the market is rising, you ask others what they are buying, and the answer you get is: “Idiot, don’t buy when the market is rising.” When the market is falling, you ask others what they are buying, and the answer you get is: “It’s all over, those who buy now are all fools.”
- Stay away from the echo wall effect
Use Twitter to get feedback on your own views instead of seeking validation. For example, if you are considering buying HYPE, also look into the opinions of those who do not recommend it. Maybe you have overlooked something.
- Less arguing, more research
Instead of arguing with anonymous people online, it’s better to spend time reading whitepapers, experiencing on-chain applications, asking questions on Telegram/Discord, or recording your own thoughts. Thinking on paper is the most effective; write down your investment logic before buying.
- Do not waver in your belief in holding positions just because others are making money faster than you.
Your long-term holdings should be measured in years, not weeks or days. However, if your investment logic changes, you should be brave enough to sell. Never “cling” to your positions.
- About Trading
If you feel unusually excited about a position, sell it. If the price is rising parabolically, sell it. Nothing will go up forever; to survive in the long term, you must take profits.
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If you cannot explain the source of earnings of the DeFi platform you are on in two sentences, then you are the source of earnings.
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In the crypto space, narrative is everything.
The story we tell together has great power. Dogecoin and SHIB once had a total market value close to $100 billion. This reminds me of a saying: “Do you want to make money, or do you want to prove you are right?”
- Missed opportunities are not opportunities.
If you see a new crypto project and think, ‘Wow, this idea is amazing,’ but delay investing for a few weeks, then when its price suddenly skyrockets, don’t just follow the crowd and throw money at it. Your investment opportunity was a few weeks ago, and now it’s too late; you might end up buying at a local peak.
- Emotions are temporary.
When you start making money, you feel an extreme excitement, but the side effect is that you will want to replicate that feeling over and over again. Overtrading and frequent position changes may just be to relive that euphoric emotion.
- Every asset will have its own highlight moment in a bull market.
I know you want to believe that all assets will rise together, but more often it’s about different sectors rotating in performance. Pay attention to emerging narratives and position yourself in advance.
The mistakes made in your 20s are better than those made in your 40s, and a $1,000 mistake is better than a $100,000 mistake.
The first time I tried leveraged trading, I lost several thousand dollars within minutes. But I learned my lesson and kept moving forward.
- Why do most people fail to make money in the cryptocurrency market?
YouTuber / Crypto Twitter big V starts discussing a certain project / making videos (price increase)
The token entered the top 100 on Coingecko.
KOLs/ VCs/ early investors, etc. start to sell during the upward trend.
After the token “Fame” is launched, ordinary retail investors want to buy in.
Retail investors buy in = the price goes up a little more
KOL/VC/ Early Investors Liquidation
Token plummets (usually while you’re sleeping, right?) - you cut losses.
- Give yourself time
We all want to get rich quickly, but steady and solid progress is what wins the game. Remember, 81.5 billion of Warren Buffett’s net worth of 84.5 billion was earned after the age of 65.
- What you want is not retirement, but freedom.
Retirement is like a vacation on the beaches of the Caribbean; you get tired of it after a week. Freedom is waking up and doing what you want to do, creating with interesting people, and having plenty of time to spend with family and friends.
- Do not easily go all in on the crypto industry.
If you really want to quit your stable 9-to-5 job and fully engage in the crypto industry, ask yourself if you are willing to be online for 10-16 hours a day for several years, 7 days a week. Even so, success is not guaranteed.
- When you finally succeed in the crypto market, you will find that this is not what you originally wanted.
You have money, but you are still the same you. Make sure that your life goals go beyond just making money, otherwise it’s easy to fall into depression. But that’s a story for another time.