Many people entering the crypto space are fixated on the dream of getting rich overnight, always looking for the next 100x coin. But what is the reality?

Let's look at some data first. Among retail investors participating in altcoin trading, the final outcomes are generally distributed as follows—90% end up losing and exiting, 7% barely break even on their principal, and 3% actually make money. Even more heartbreaking is that those who earn more than 10 times their investment account for less than 0.1%.

Think about it: after years of struggling in the crypto world, how many friends around you have achieved financial freedom through trading altcoins? Are the "experts" who once posted big orders in social circles still active? Most have probably disappeared.

To put it simply, what is the essence of altcoins? They are essentially lottery tickets wrapped in blockchain technology.

Let's compare. Buying a lottery ticket costs only 2 yuan, with a winning probability of one in ten million. Most people play for fun and are relaxed about it. But what about altcoins? Some invest their entire savings, believing their chances of "winning" are higher than the lottery, but in reality, they are still extremely low. The mindset shifts entirely—from rational analysis to fantasizing about getting rich overnight. Essentially, it’s gambling.

The most ironic part is this: you would never dare to buy a lottery ticket with 20,000 yuan, but when it comes to altcoins, you’re willing to go all-in with your entire savings. Why is your psychological mindset so different?

So why do most people fail to grasp the trend of altcoins in the end? Mainly because of these fatal misconceptions:

**Chasing highs and selling lows**. You only realize a coin has increased tenfold after it has already risen, and by then, you’re just a bagholder. Then it drops 50%, panic sets in, and you sell at the bottom. The whole process is buying high and selling low.

**Information is always lagging**. By the time you hear the news, the big players have already completed their layout. The signals in social groups are often just to find someone to take the other side of the trade. You think you’re getting a bargain, but in fact, you’ve already been set up.

**Complete loss of position control**. You’re bullish on a coin and go all-in, only for it to go to zero, losing everything. No risk management at all.

**No clear exit strategy**. You never know when to sell. When it rises, you want to wait for even higher prices; when it falls, you hope for a rebound. The result is holding on and only regretting later.

Here’s an interesting phenomenon—newcomers see a coin that has increased fivefold in a week and rush in without hesitation. But experienced traders who have gone through several cycles? When they see a 5x increase, their first reaction isn’t excitement but suspicion: “Is someone dumping?” and they quickly exit.

After several rounds of speculation, their understanding improves. They begin to realize that in the altcoin market, **more than 99% of people are already not losing money**.

Rather than spending every day researching which altcoin can multiply ten or hundred times, it’s better to focus on the allocation strategies of mainstream assets. Bitcoin and Ethereum, for example, may not make you rich overnight, but in the long run, they are safer choices. True wealth accumulation often doesn’t come from gambling-like trades but from continuous risk management and rational decision-making.