18 Valuable Lessons from the Crypto Market

Having been deeply involved in the cryptocurrency field for many years, I have summarized the following 18 crucial lessons, hoping to provide some inspiration for both newcomers and veterans alike:

1. Independent thinking is crucial.

The crypto market is a fiercely competitive stage, where everyone is fighting for their own interests. Although the community atmosphere is friendly, in critical moments, one must rely on their own judgment and not trust others blindly.

2. The information gap on social media is huge

Information on social platforms often suffers from severe asymmetry. Influential individuals may hold insider information, while ordinary investors are at a disadvantage. Learning to identify reliable sources of information is crucial for successful investment.

3. Trust Your Analysis

When market sentiment fluctuates, the advice of others is often unreliable. In a bull market, some will say it's too late to buy now, while in a bear market, others will say it's all over. Maintain independent thinking and trust your own judgment.

4. Breaking Out of the Information Cocoon

Don't just listen to voices that agree with your views. Actively seek out different perspectives and challenge your investment logic. Make decisions only after having a comprehensive understanding to avoid falling into confirmation bias.

5. Value your time and focus on what is worthwhile.

Instead of arguing online, it's better to:

• Study the project white paper
• Personal experience with related applications
• Direct interaction with the community
• Record your investment ideas

Writing down ideas helps to clarify thoughts and avoid impulsive decisions.

6. Do not be influenced by the gains of others

Seeing others making short-term profits may shake your belief in long-term holding. Remember, long-term investment is measured in years. If the investment logic still holds, stick to it, but also keep an eye on market changes.

7. Control Trading Emotions

Emotions are the biggest enemy in trading. Consider reducing your position when overly excited, and decisively take profits during a surge. The market cannot rise indefinitely, so it is important to learn to exit at the right time.

8. Understanding the Sources of Income

Especially in DeFi projects, if you cannot easily explain where the profits come from, you are likely the source of the profits. Make sure to clarify the economic model and risk points before investing.

9. The Power of Market Narratives

In the crypto market, narratives often drive prices more than fundamentals. Sometimes, following mainstream narratives can be more profitable than sticking to what is "right."

10. Avoid chasing highs

Discovering good projects but delaying the purchase often leads to missed opportunities when prices soar. Learn to accept missed opportunities and patiently wait for the next one.

11. Emotions are temporary

The excitement of making money can be addictive, but overtrading often stems from chasing that feeling. It's important to stay calm and rational.

12. Understanding Market Cycles

Different sectors take turns performing in a bull market. Focus on emerging trends and position yourself in advance, rather than chasing already started sectors.

13. The cost of making mistakes is lower when you're young

Making mistakes in your 20s is much cheaper than making mistakes in your 40s. Moderate risks and failures are part of growth, but they should be kept within a manageable range.

14. Why is it difficult for retail investors to make money

Understanding the market operation model, such as how project parties, KOLs, and venture capitalists gradually exit when retail investors enter, can help you avoid becoming a "bag holder".

15. Give yourself time

Success requires time to accumulate. 96% of Buffett's wealth was accumulated after the age of 65, which illustrates the importance of patience and long-term persistence.

16. Pursue freedom instead of mere retirement

The true goal should be to have the freedom of choice, not just financial freedom. Think about how to live a more meaningful life.

17. The Cost of Full-Time Investing

Going full-time into the crypto market means long hours of intense work without a guaranteed fixed income. It is important to carefully consider whether you are fully prepared.

18. Reflection After Success

When you achieve success in the market, you may find that money cannot solve all problems. Set more meaningful life goals to make success more valuable.