The 18 lessons I learned in the crypto market

Whether or not you are in the cryptocurrency market, if you pay even a little attention, it seems that you will always be tempted by those stories of making hundreds or thousands of times your investment, making it hard to resist putting yourself in their shoes and then stepping onto the poker table.

However, only after truly participating will one realize that behind the few lucky individuals who become wealthy, the vast majority are just silent cannon fodder who have even lost everything.

After years of deepening my understanding in the crypto market, I have learned these 18 lessons:

01

Don't assume anyone will think of you

Even if you feel like a part of the cryptocurrency Twitter community and belong to some big family, in reality, you are fighting alone in this market. The cryptocurrency market is a "player versus player" arena where everyone is pursuing their own interests.

No one will truly consider your interests; all decisions and actions revolve around self-interest. Therefore, you need to stay vigilant and rely on your own judgment rather than expect goodwill from others.

02

The information asymmetry on Twitter is extremely high

On social media platforms like Twitter, the phenomenon of information asymmetry is very serious. Some influential people may have more insider information or market dynamics, while ordinary investors often find themselves at a disadvantage. To make informed investment decisions in the cryptocurrency market, you need to be clear about who the truly valuable sources of information are.

Pay attention to the right people**, you may gain huge "alpha"; blindly following the wrong people could lead to losing everything**. Learning to discern the reliability and motives of information sources is key to successful investing.

03

Trust your judgment

When market sentiment fluctuates, the advice of others is often unreliable.

• When the market is rising, and you ask others what to buy now, they might say: "Buy at market highs? Are you stupid?"
• When the market is down, and you ask others what to buy now, they will say: "It's all over, buying now is foolish behavior."

These feedbacks often reflect the extremity of market sentiment rather than objective advice. Therefore, learn to trust your own analysis and judgment, and do not be swayed by the emotional rhetoric of others.

04

Stay away from the echo chamber

On Twitter, it is easy to fall into an "echo chamber," where you only hear voices that align with your own views. Do not use social media to seek confirmation bias, but rather use it to test and challenge your investment perspectives.

For example, if you consider investing in a popular Token (such as "HYPE"), in addition to focusing on the supportive voices, you should also actively seek out opposing opinions. Perhaps you have overlooked some key risks or issues. Maintaining an open mind is essential to making a more comprehensive decision.

05

Spend time on valuable things

Instead of arguing online with anonymous people, it's better to spend your time on more productive things, such as:

• Read the project white paper to gain a deeper understanding of the project's technology and business logic;
• Experiment with related applications on the blockchain and experience their functions and potential firsthand;
• Interact with the community on Telegram or Discord, ask questions, and get firsthand information;
• Record your investment ideas and write down your investment logic.

Thinking on paper can help you clarify your thoughts more clearly. Writing down your investment arguments before investing can allow you to evaluate decisions more rationally and avoid emotional trading.

06

Do not waver in your beliefs because of others' gains

Seeing others make a lot of money in a short period of time may make you fear, doubt, or feel like you're missing out on your own long-term holdings. But you must remember that the investment logic of long-term holdings is calculated in years, not in weeks or days.

If your investment argument is still strong, stick to it; But if the fundamentals of the market or project have changed, sell decisively**. Never "fall in love with your position", it's important to be flexible and rational.

07

Emotional Management in Trading

In trading, emotions are often the biggest enemy. Here are some suggestions:

• If you feel too excited about a position, consider selling it;
• If the price of an asset suddenly surges, sell decisively.

The market cannot rise forever; the key to long-term survival is learning to secure profits. Greed may cause you to miss the best exit opportunity.

08

Understanding the Sources of Yield in Decentralized Finance (DeFi)

In DeFi platforms, if you cannot clearly explain the source of returns in two sentences, you are likely the "source" of those returns. In other words, you may be providing liquidity or taking on risks for others, while being completely unaware of it. Before investing in DeFi projects, it is essential to understand their economic models and risk points.

09

Narrative determines everything

In the cryptocurrency market, narrative is the core driving force behind prices. The stories collaboratively constructed by market participants can significantly influence asset values. For example: (Dogecoin) once had a total market capitalization close to $100 billion, which was entirely the result of narrative-driven factors.

This reminds me of a saying: "Do you want to make money, or do you want to prove you are right?**" In the market, following the narrative often yields better returns than being obsessed with being "correct." **

10

Do not chase the highs

When you discover a new project and think, "Wow, this idea is amazing," but you procrastinate for weeks without investing, then when its price suddenly skyrockets, don't chase the high. Your best investment opportunity was missed weeks ago. Jumping in now will likely have you buying at a local peak. Learn to accept missed opportunities and patiently wait for the next one.

11

Emotions are temporary

When you start making money, you may feel extremely excited, and this feeling can become addictive, leading you to want to constantly recreate this sensation. However, overtrading or frequently changing positions often stems from chasing this feeling rather than making rational investment decisions. Learn to control your emotions and stay calm to avoid unnecessary losses.

12

Understanding Market Cycles and Sector Rotation

In a bull market, not all assets will rise simultaneously. Typically, the market goes through different phases, with certain sectors (such as DeFi, NFT, Layer 2, etc.) performing sequentially. Pay close attention to emerging narratives and trends, positioning yourself in advance instead of chasing already launched sectors. Plan your investment strategy well to gain an advantage in market rotations.

13

The cost of making mistakes is lower when you are young

Making mistakes in your 20s is far less costly than making mistakes in your 40s; a lesson learned from losing $1,000 is much easier to bear than one learned from losing $100,000. The first time I tried leveraged trading, I lost several thousand dollars in just a few minutes, but that failure taught me valuable lessons. Failure is part of growth, but make sure that the cost of failure is within your acceptable limits.

14

Why Most People Can't Make Money in the Crypto Market

Ordinary investors are often at a disadvantage in the cryptocurrency market for the following reasons:

• A YouTuber or influencer promotes a project on Twitter, and the price starts to rise;
• The Token entered the top 100 on CoinGecko, attracting more attention;
• KOLs, venture capitalists, or early investors start selling during the uptrend;
• The project becomes "well-known", and ordinary investors begin to buy in;
• Retail investors buying push prices higher, but the increase is limited;
• KOLs, VCs, and others sell all their holdings;
• Token prices plummet (usually while you're sleeping), and you're forced to cut losses.

Understanding this pattern can help you avoid becoming a "greater fool."

15

Give yourself time

We all wish to get rich quickly, but success in the cryptocurrency market takes time. Slow and steady wins the race. Of Warren Buffett's $84.5 billion fortune, $81.5 billion (over 96%) was accumulated after he turned 65. This reminds us that patience and long-term persistence are key to wealth accumulation.

16

What you want is not retirement, but freedom

Many people think retirement is the goal, imagining themselves lounging on a beach in the Caribbean. But retirement life can become boring after just a week. The real goal is freedom—to wake up every day and do what you want, create value with interesting people, and have enough time to spend with family and friends. The cryptocurrency market may offer you financial freedom, but don't forget to pursue more meaningful life goals.

17

The Cost of Being a Full-Time Cryptocurrency Professional

If you want to quit your stable nine-to-five job and fully immerse yourself in the cryptocurrency market, ask yourself if you are ready to be online 10 to 16 hours a day, seven days a week, for several years. Even then, there is no guarantee of success. Fully committing to the crypto market requires a high level of self-discipline, patience, and mental resilience.

18

Reflections After Success

When you are "successful" in the cryptocurrency market, you may find that it is not what you initially wanted. You have money, but you are still the same you. Money cannot solve all problems. If your only goal is money, you may feel empty or even depressed after achieving success. Therefore, setting goals that are more important than money, such as personal growth, family happiness, or social contribution, can make your success more meaningful.

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