18 encryption market investment experiences

Having navigated the cryptocurrency field for many years, I have summarized the following 18 valuable experiences, hoping to provide some inspiration for both new and seasoned investors:

1. Independent thinking is crucial.

The crypto market is a highly competitive environment where everyone is pursuing their own interests. Don't naively think that others will consider your needs; learn to make independent judgments and decisions.

2. Beware of information gaps on social media

Information on social platforms often suffers from serious asymmetry. Influential people may have access to more insider information, while ordinary investors are at a disadvantage. It is crucial to learn how to assess the reliability and motives of information sources.

3. Trust your own judgment

When market sentiment fluctuates, others' advice is often unreliable. Learn to trust your own analysis and do not let emotional statements sway you.

4. Break out of the mindset

Do not limit yourself to voices that share the same opinions as yours. Actively seek out differing opinions and challenge your own investment views to make more comprehensive decisions.

5. Treasure time and focus on valuable things.

Invest time and energy into truly valuable activities, such as in-depth research on projects, practical experience with applications, and interacting with the community. Recording investment ideas helps to evaluate decisions more rationally.

6. Maintain a long-term investment belief

Do not be shaken in your long-term holding strategy by the short-term gains of others. But you should also pay attention to market changes and adjust your investment portfolio in a timely manner.

7. Emphasis on Emotional Management

In trading, emotions are often the biggest enemy. Learning to control excitement and greed, and locking in profits at the right time is the key to long-term survival.

8. Deep dive into DeFi mechanisms

Before participating in decentralized finance projects, it is essential to understand their economic models and risk points. If you cannot clearly explain the source of returns, it is very likely that you are the "source of returns."

9. Understanding the Power of Narrative

In the crypto market, narratives often serve as the core driving force behind prices. Learning to identify and grasp the mainstream narratives in the market can sometimes yield greater returns than sticking to what is "correct."

10. Avoid chasing high prices

After missing early investment opportunities, do not blindly chase high prices when they surge. It is wiser to patiently wait for the next opportunity than to risk buying at a high point.

11. Maintain emotional stability

The excitement brought by investment returns can be addictive, but excessive trading often stems from chasing that feeling. Learn to control your emotions and stay calm and rational.

12. Grasp the market cycle and sector rotation

Keep a close eye on emerging trends and lay out plans in advance, rather than chasing already launched hot sectors. A well-planned investment strategy is essential to gain an advantage in the market rotation.

13. Cherish the opportunities to make mistakes when you are young.

The cost of making mistakes when young is relatively low, and these lessons are crucial for future investments. However, it is important to ensure that the cost of failure is within an acceptable range.

14. Understand the market operation mechanism

Ordinary investors often find themselves at an information disadvantage and are easily turned into "bag holders". Understanding market operating patterns can help you avoid unnecessary losses.

15. Be patient and invest for the long term.

Wealth accumulation takes time. Do not expect to get rich overnight, but cultivate a mindset of long-term investment and patience.

16. Pursuit of true freedom

Financial freedom should not be the ultimate goal. True freedom is being able to do what you love every day, create value, and have ample time to spend with family and friends.

17. Weighing the Costs of Full-Time Investment

Fully committing to the crypto market requires a high level of self-discipline, patience, and mental resilience. Before making a decision, one must fully consider the costs and risks of this choice.

18. Reflecting on the Meaning of Success

Money cannot solve all problems. Setting goals that are more important than money, such as personal growth, family happiness, or social contribution, can make success more meaningful.

These lessons have been hard-earned, and I hope they can help investors navigate the complex and ever-changing crypto market more efficiently, achieving long-term and stable investment returns.