How to Win in the Crypto Assets Market in the Long Term

The Crypto Assets market is constantly changing. To achieve long-term success in this field, one must have a long-term mindset. Most of those who have succeeded in the Crypto Assets field started from scratch and continued to contribute to the industry. The following tips can help you better survive and thrive in this harsh market.

1. Protect Capital

After the market plummeted by 75% in January 2018, many large investors learned their lesson and took profits in a timely manner during the bull market in 2020-2021. They understand that preserving value and capital protection are key to long-term survival.

Remember not to disclose your mnemonic phrase or private key. The world of Crypto Assets is like a dark forest; once exposed, no one can save you. There is no customer service to turn to; once the private key is leaked, your encryption journey is basically over.

2. Trading Strategies

There are two views in the crypto community: long-term investors and traders. The long-term camp believes that holding coins and dollar-cost averaging are the only effective methods, while the trading camp believes that one needs to frequently adjust positions based on rapidly changing narratives.

Both viewpoints have their merits. In terms of long-term investment, BTC and ETH are worth holding and dollar-cost averaging over the long haul. However, if you compare the top 100 crypto assets by market capitalization from four years ago to now, very few have survived. The likelihood of your favorite coin existing in the long term is very small; even if it doesn't go to zero, it may slowly be phased out.

Therefore, do not go all in, and do not let investment become a burden. Learn some technical indicators and trend line analysis to understand the timing and positioning of trades. While this may seem like astrology to some, professional traders use these tools and models to protect their capital.

If you have no understanding of technical analysis, the market can seem very malicious. It is recommended to practice trading on a demo account before using real money, especially with leveraged trading. Although the feeling of simulated trading is different from real trading, it can help you understand the principles of leverage and experience the speed of making and losing money.

The volatility of Crypto Assets far exceeds that of the stock market. Although going all in on some meme coins may bring high returns, in reality, 90% of people will lose money. You will never hear the voices of the losers, only be surrounded by stories of overnight wealth.

3. Continuous Learning and Progress

Find like-minded individuals and ally with those in the industry who are curious and share the same goals. Especially those who are highly intelligent, eager for success, and energetic, such as founders and developers.

By communicating and learning with these friends, discussing ideas every week can provide more inspiration and accelerate your research progress.

But remember the principle of DYOR, do not blindly trust anyone. Think twice before collaborating with others.

4. Coping with Turbulent Markets

The efficiency of the Crypto Assets market is low, and entering new projects early can often lead to big profits. However, narratives change rapidly; today's hotspot may become a poor choice tomorrow.

Position control has become the most important skill in this industry. Think carefully before entering, and make thorough calculations. If you cannot explain the source of a certain DeFi platform's yield in two sentences, then you are likely the source of the yield. This rule applies to many DeFi protocols.

5. Enhance Influence

If you want to make a mark in the Crypto Assets field, you need to be ready to change your mind at any time. Don't be the kind of die-hard fan who supports a certain ecosystem no matter what happens. If the narrative changes, you should also change with it.

Crypto Assets are not like stock index funds; index funds cannot go to zero, but your altcoins might. Acknowledge wrong judgments and exit at a loss if necessary. Always remember opportunity cost.

The simplest way to increase influence is to gain Twitter followers. The best approach is to create content: videos, Twitter threads, podcasts, or blogs. Choose a medium you excel in and focus on it. Sticking to one is better than being a jack of all trades but master of none. The key is to maintain consistency and update on time every day.

Identify your strengths and double down on them. For example, I excel at writing, so I focus on writing rather than making videos or podcasts. If your content is professional enough, people will pay attention to you because you are an expert in the field. This is your moat; others cannot easily replicate your reputation.

90% of meeting requests can be declined. Most meetings are meaningless, and almost everything can be communicated through text. It's best to use your time for creation. If a meeting is necessary, be sure to set a clear agenda.

6. Opportunity Cost

Opportunity cost applies to many areas, especially portfolio allocation. Many people have anchoring bias, adhering to the idea of "waiting to break even before selling."

But opportunity cost means that sometimes cutting losses and reallocating funds to projects with stronger fundamentals may be a better choice.

The same goes for being fully engaged in crypto. At a certain stage, full-time involvement may be more valuable than a regular job. However, the premise is that you have a sufficient capital base; quitting without a plan is unwise.

7. Time Cost

Outsource as much work as possible. Being overly frugal can waste your time. If you have specific expertise, you should cherish your time even more and not waste it on areas that do not bring additional value to your life.

8. Expertise Costs

If you want to join a crypto startup, make sure to work in an area you excel in. Not only developers are needed, but marketing is equally important. A good protocol that no one knows about won't go far.

There is an untapped opportunity in this field - copywriting. For most people, project documentation and protocol descriptions are too obscure. Writing easy-to-understand introductions for DeFi protocols could be a good business opportunity.

Dare to share your thoughts. You will be surprised at how many people want to see your perspective. 99% of people are consumers, while only 1% are creators. Even if you think a certain topic is saturated, don't give up easily.

9. Set Goals

Set a clear financial goal for yourself. With a goal, it becomes easier to stay focused and consistent. You don't need to earn all the money within a year; it's important to have a long-term plan.

Setting some milestone stages can also be helpful. For example, when reaching 25% of the total goal, treat yourself to a gift to celebrate.

There are many ways to make money in the Crypto Assets field, including trading, DeFi, and NFTs. You don't have to limit yourself to a single area, but you should focus on the one you are best at, so that you can continuously improve.

10. Summary

When you achieve success in the Crypto Assets field, you may find that it is not what you initially wanted. You have money, but life hasn't changed much. So, in addition to financial goals, you should also set some life goals. A colorful life can bring true happiness.