Investment Market: Rationality and Challenges Coexist

The investment world is a challenging field, and survival is not easy. Although we often hear success stories from others, the reality is that only a few participants can make a profit. It is a brutal competition.

Economic and market fluctuations are cyclical; there are no permanent bull or bear markets. Every investor needs to find a survival strategy that suits them, and the key lies in recognizing their own nature rather than blindly imitating others. Some people excel at short-term trading, some focus on fundamental project investments, and others engage in cross-cycle layouts, with each person having their own distinct strategy.

However, one point worth noting is that, in the long run, excessive focus on price fluctuations may lead to poor investment outcomes. When people easily make profits through trading, it is easy to develop an illusion of invincibility. Ultimately, the market will redistribute gains, and whether one can truly profit and retain those results largely depends on the investor's psychological quality.

Investment or trading behavior essentially reflects a person's inner qualities, such as the balance between desire and self-control. These factors determine people's specific actions: buying, selling, or holding. Each decision has its own underlying logic, based on the individual's judgment of various factors like money, fundamentals, speculation, and market trends.

The real question worth pondering is not "When will it start to rise" or "How much can it rise to," but rather whether you have enough confidence in your investment decisions. If you lack confidence in a certain trend, it is better not to hold the related assets, as it may affect your subsequent decisions and lead to unfavorable outcomes.

In this ever-changing market, hotspots constantly emerge, capturing the attention of investors. For those who position themselves early, this means opportunities for rewards; whereas for those who are late to the game, they may face significant risks.

For true industry builders and long-term investors, they pay more attention to the construction and development of fundamentals rather than short-term price fluctuations or market cycles. Even in a bear market, projects with solid fundamentals (such as the metaverse and crypto games) may perform more robustly because they have a real user base. Nevertheless, these projects still find it difficult to completely escape the influence of macro trends.

The cryptocurrency market is primarily supported by two types of groups: one group aims to outpace inflation, while the other is dedicated to outperforming Bitcoin or Ethereum. These two groups have a significant impact on market development. Traditional institutional investors will increase their allocation and drive up prices if they believe that crypto assets can outpace inflation. Conversely, if they think fiat currencies perform better, it may trigger a sell-off, leading to a price decline. On the other hand, supporters within the industry are more concerned about whether they can outperform mainstream cryptocurrencies, and they often become an important support force in the market during bear markets.

In any market, survival is always the top priority, rather than blindly pursuing high returns. While leveraging the entire position may bring substantial profits, from a probabilistic perspective, the risks of this strategy often outweigh the rewards.

Finally, it is important to emphasize that the investment world is diversified, and there is no absolutely correct strategy. Everyone should examine their own heart and find the investment path that suits them. This is where true wisdom lies.