18 Valuable Lessons from the Crypto Market

After many years of deep cultivation in the cryptocurrency field, I have accumulated some valuable experiences and lessons. These insights may help you avoid some common pitfalls in this complex and ever-changing crypto market and make more informed decisions.

1. Maintain Independent Thinking

In the crypto market, everyone is pursuing their own interests. Even if you feel like a member of a certain community, remember that this is essentially a highly competitive environment. Stay vigilant and rely on your own judgment rather than blindly trusting others.

2. Beware of Information Asymmetry

Information on social media often suffers from serious asymmetry. Some influencers may have access to more insider information, while ordinary investors often find themselves at a disadvantage. Learning to assess the reliability and motives of information sources is crucial for successful investing.

3. Trust Your Judgment

When market sentiment fluctuates, the advice of others is often unreliable. Regardless of market trends, learn to trust your own analysis and judgment, and do not be influenced by the emotional remarks of others.

4. Avoid falling into an echo chamber

Don't just seek voices that share your opinions; actively challenge your investment views. When considering investing in a project, also actively look for opposing opinions to comprehensively assess potential risks.

5. Reasonable Time Allocation

Invest your time in truly valuable activities, such as in-depth research on projects, firsthand experience of applications, and interaction with the community. Recording investment ideas is also a good habit that helps in rationally assessing decisions.

6. Maintain a Long-Term Perspective

Do not be shaken in your long-term investment strategy by the short-term gains of others. If your investment thesis still holds, continue to hold; but if the fundamentals change, be decisive in making adjustments.

7. Managing Trading Emotions

Emotions are often the biggest enemy in trading. When you are overly excited about a position or see prices skyrocketing, consider taking profits moderately. Learn to control greed and seize the right exit timing.

8. Deep Dive into DeFi Projects

Before participating in decentralized finance (DeFi) projects, it is essential to clearly understand the sources of returns and potential risks. If you cannot easily explain the return mechanism, it is likely that you are taking on risks for others.

9. Value Market Narratives

In the crypto market, narratives often serve as the core force driving prices. Understanding and grasping mainstream narratives can sometimes yield better returns than sticking to the so-called "correct" ones.

10. Avoid chasing highs

After missing early investment opportunities, do not impulsively chase prices when they soar. Learn to accept missed opportunities and patiently wait for the next good chance.

11. Control Emotional Fluctuations

The emotional ups and downs brought by trading can be addictive. However, overtrading often stems from chasing this feeling rather than making rational decisions. Learn to control your emotions and stay calm.

12. Grasping Market Cycles

Understand the different stages of the market and the rotation patterns of sectors. Pay close attention to emerging trends and position yourself in advance, rather than chasing already initiated hotspots.

13. Cherish the "freedom to make mistakes" in youth

The cost of making mistakes when young is often smaller. Moderate experiences of failure can provide valuable learning opportunities, but it is important to ensure that the risks are within a controllable range.

14. Understanding Market Operation Mechanisms

Understanding the typical operating models of the crypto market, such as project promotion, price increases, large holders taking profits, and retail investors taking over, helps to avoid becoming a "bag holder".

15. Be Patient

Success requires time accumulation. Do not expect to get rich overnight, but rather focus on long-term, stable wealth accumulation strategies.

16. Pursuing True Freedom

Financial freedom should not be the ultimate goal, but a means to achieve a more meaningful life. Think about how to use resources to create value and enjoy a balance between work and life.

17. Weighing the Costs of Full-Time Commitment

If considering full-time involvement in the crypto market, it is essential to fully assess the challenges and risks involved. This requires a high level of self-discipline, patience, and mental resilience.

18. Reflecting on the Meaning of Success

After achieving certain success in the crypto market, reflect on your true goals and values. Money is not everything; setting more meaningful life goals is the key to obtaining true satisfaction.