Reflections After Years in the Crypto Market: 18 Valuable Lessons

Having struggled in the crypto market for many years has allowed me to accumulate a wealth of valuable experience. Whether you are a newcomer just entering the arena or an experienced veteran, these lessons may provide you with some inspiration.

1. Independent thinking is crucial

The crypto market is a highly competitive stage, where everyone is fighting for their own interests. Do not expect others to selflessly think of you; stay vigilant and trust your own judgment.

2. The Information Divide on Social Media

On social media platforms, the asymmetry of information is very apparent. Influential individuals may have access to more insider information, while ordinary investors often find themselves at a disadvantage. Learning to discern 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. Whether in a bull market or a bear market, you must learn to trust your own analysis and judgment, and not be influenced by the emotional comments of others.

4. Avoiding Echo Chambers

Social media can easily trap people in an "echo chamber" effect, only hearing voices that align with their own views. It is essential to actively seek out different perspectives and challenge one's own investment beliefs to make more comprehensive decisions.

5. Cherish time and focus on valuable things

Instead of arguing with strangers online, it is better to invest time in more valuable things. Delve into project whitepapers, experience applications firsthand, interact with the community, and document your investment thoughts; these are all more meaningful actions.

6. Do not waver in your beliefs due to others' profits

Seeing others make substantial profits in the short term may cause you to doubt your long-term holdings. But remember, the logic of long-term investment is based on years. If your investment thesis still holds, continue to hold; if the fundamentals change, sell decisively.

7. Emotional management is crucial in trading

In trading, emotions are often the biggest enemy. If you are too excited about a position or if the price of an asset suddenly surges, consider selling at the right time. Learn to lock in profits and avoid letting greed cause you to miss the best exit opportunity.

8. Understanding the Sources of Revenue in Decentralized Finance (DeFi)

Before investing in DeFi projects, be sure to understand their economic models and risk points. If you cannot clearly explain the source of returns, it is very likely that you are providing liquidity for others or bearing the risks.

9. The Power of Market Narratives

In the crypto market, narratives are often the driving force behind price movements. The stories constructed collectively by market participants can significantly impact asset values. Sometimes, following the narrative can yield better returns than being fixated on what is "correct."

10. Avoid chasing highs

After discovering a promising project but delaying investment, do not chase the price when it suddenly surges. The best investment opportunity may have already been missed, and rushing in at this time is likely to result in buying at a local high. Learn to accept missed opportunities and patiently wait for the next one.

11. Control Emotional Fluctuations

The excitement of making money can be addictive, easily leading to overtrading or frequent position rotation. Learning to control emotions and staying calm is essential to avoid unnecessary losses.

12. Grasping Market Cycles and Sector Rotation

In a bull market, different sectors will take turns performing. Keep a close eye on emerging narratives and trends, positioning yourself in advance rather than chasing already started sectors. A well-planned investment strategy is essential to gain an advantage in market rotations.

13. The cost of making mistakes is lower when young

The cost of making mistakes when you're young is often lower. Moderate failures and losses can provide valuable lessons, but it's important to ensure they are within an affordable range.

14. Why Ordinary Investors Find It Difficult to Profit

In the crypto market, ordinary investors often find themselves at an information disadvantage. Understanding the market operating model and the behaviors of various parties can help you avoid becoming a "bag holder".

15. Give Yourself Time

Success requires time and patience. Buffett's wealth accumulation journey reminds us that long-term persistence and the effect of compound interest are key to wealth accumulation.

16. Pursue freedom instead of mere retirement

Many people think that retirement is the goal, but the true goal should be freedom – the ability to do what you want, create value, and have time to spend with family and friends.

17. The Cost of Fully Engaging in the Crypto Market

If you consider fully committing to the crypto market, you must be prepared for a long-term, high-intensity workload. This requires a high degree of self-discipline, patience, and mental resilience, with no guarantee of success.

18. Reflection After Success

When achieving success in the crypto market, one may find that money does not 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.