18 Valuable Experiences in the crypto market

After years of navigating the crypto market, I have accumulated many profound insights and lessons. Whether you are a novice or an expert, these experiences are worth reflecting on.

1. Independent thinking is crucial

The crypto market is an arena of "everyone for themselves." Even if you feel like you belong to a certain community, remember: everyone is pursuing their own interests. Stay vigilant and rely on your own judgment, not on the goodwill of others.

2. Asymmetric Information in Social Media

The information disparity on social media platforms is enormous. Influential individuals may hold 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 Own Judgment

When market sentiment fluctuates, the advice of others is often unreliable. In a bull market, some say "it's too late to buy now," while in a bear market, others say "it's all over." These statements often reflect extreme market emotions rather than objective advice. Learn to trust your own analysis and judgment.

4. Avoiding the "Echo Chamber"

Social media can easily lead people to hear only viewpoints that align with their own. Instead of using it to seek confirmation bias, it should be used to challenge your investment perspectives. When considering investing in a popular token, actively seek out opposing views to comprehensively assess the risks.

5. Focus on Valuable Activities

Instead of arguing online, it's better to spend time on more productive things:

• In-depth study of the project white paper
• Personal experience of on-chain applications
• Interact directly with the community
• Record investment ideas

Writing down investment logic helps to evaluate decisions more rationally and avoid emotional operations.

6. Adhere to Long-term Investment Logic

Short-term gains from others may make you doubt your long-term holdings. But remember, long-term investments are measured in years. If the investment thesis still holds, stick to your position; if the fundamentals change, sell decisively. Don't "fall in love" with your position, stay flexible and rational.

7. Control Trading Emotions

Emotions are the biggest enemy in trading. If you are too excited about a position, consider selling; if the asset price suddenly skyrockets, take profits decisively. The market cannot rise forever, and learning to lock in profits at the right time is key to long-term survival.

8. Understanding the Sources of DeFi Yield

In DeFi platforms, if you cannot clearly explain the source of returns, you are likely the "source of returns". Be sure to understand the project's economic model and risk points before investing.

9. Understanding the Power of Narrative

In the crypto market, narrative is the driving force behind price. The stories constructed by market participants can greatly influence asset value. Sometimes, following the narrative can yield greater returns than holding onto what is "correct."

10. Beware of the Risks of Chasing High Prices

Discovering promising projects but delaying investment can lead to missed opportunities. When prices soar, avoid impulsively chasing high prices. The best opportunities may have already been missed, making entry at this point risky. Learn to accept missed opportunities and patiently wait for the next one.

11. Control Emotional Fluctuations

The excitement of making money can be addictive, but overtrading often stems from chasing that feeling rather than making rational decisions. Learn to control your emotions, stay calm, and avoid unnecessary losses.

12. Grasping Market Cycles

In a bull market, different sectors will take turns performing. Pay close attention to emerging trends and position yourself in advance, rather than chasing already established hotspots. A well-planned investment strategy is essential to gain an advantage during market rotations.

13. Cherish the opportunity to make mistakes while young

The cost of making mistakes when you are young is relatively low. The lessons learned from losing small amounts of money are easier to bear than losing large amounts of wealth. Failure is a part of growth, but make sure that the cost of failure is within an acceptable range.

14. Understanding the Reasons Why Retail Investors Find It Difficult to Make Money

Ordinary investors are often at a disadvantage:

• The project was promoted by a big influencer, and the price started to rise.
• Tokens enter the hot rankings, attracting more attention
• Early investors take advantage of the situation to sell.
• Retail investors start buying, pushing up prices
• Large holders completely exited, prices plummeted

Understand this model to avoid becoming a "muscle buyer".

15. Be Patient

Success in the crypto market takes time. Most of Warren Buffett's wealth was accumulated after the age of 65, reminding us of the importance of patience and long-term commitment.

16. Pursuing True Freedom

Many people think that retirement is the goal, but the real goal should be freedom - doing what you want to do every day, creating value with interesting people, while having enough time to spend with family and friends. Financial freedom is just a means; don't forget to pursue more meaningful life goals.

17. The Cost of Full-Time Commitment

Fully committing to the crypto market requires a high level of self-discipline, patience, and mental resilience. Make sure you are ready to work extremely long hours every day for several years, and even then, there is no guarantee of success.

18. Reflection After Success

When you achieve "success" in the crypto market, you may find that it's not what you initially wanted. Money can't solve all problems. Setting goals that are more important than money, such as personal growth, family happiness, or social contribution, can make your success more meaningful.