18 Valuable Lessons from the Crypto Market

After many years of deep cultivation in the crypto market, I have summarized the following 18 valuable experiences, hoping to provide some inspiration for other 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 you; learn to think and make decisions independently.

2. Beware of Information Asymmetry

Information on social media often suffers from severe asymmetry. Influential people may have insider information, while ordinary investors are often at a disadvantage. It is important to carefully choose information sources and focus on truly valuable opinions.

3. Trust Your Judgment

When market sentiment fluctuates, the advice of others is often unreliable. Whether in a bull market or a bear market, learn to trust your own analysis and do not be swayed by emotional comments.

4. Break Out of Fixed Thinking

Do not limit yourself to a single perspective; actively seek out different voices. This will help you comprehensively assess investment opportunities and risks, allowing you to make more informed decisions.

5. Cherish time and focus on valuable things

Instead of arguing online, it's better to spend time on more meaningful activities such as in-depth research on projects, practical application experiences, and interacting with the community. Keeping a record of investment ideas is also a good habit.

6. Maintain the Discipline of Long-term Investment

Do not waver in your investment beliefs because of short-term market fluctuations or the profits of others. If your investment logic still holds, you should stick to holding. But also keep an eye on market changes and adjust your strategy in a timely manner.

7. Controlling emotions is the key to success

Excessive excitement or panic can lead to poor decision-making. Learn to take profits at the right time and do not let greed cloud your judgment.

8. Deeply Understanding the Sources of Income for DeFi Projects

Before participating in DeFi projects, you must clarify the specific sources of income and potential risks. If you cannot explain the source of income, it is very likely that you are taking on risks for others.

9. The Importance of Market Narratives

In the crypto market, narratives often have a greater impact on price movements than fundamentals. Understanding and grasping mainstream narratives may yield better returns than being fixated on "correctness."

10. Avoid chasing highs

After missing early investment opportunities, do not chase high when prices skyrocket. Stay rational and patiently wait for the next opportunity.

11. Do not be influenced by short-term emotions

The excitement of making money can be addictive, but excessive trading often leads to losses. Learn to control your emotions and remain calm and rational.

12. Pay attention to market cycles and sector rotation

Different sectors will perform prominently at different times. Pay close attention to emerging trends and lay out plans in advance, rather than chasing already started hotspots.

13. The cost of making mistakes is lower when you are young.

It is important to accumulate experience while young, but make sure that the cost of failure is within an acceptable range. Small lessons can help avoid making larger mistakes in the future.

14. Understand the Reasons Most People Lose Money

Ordinary investors often get involved only after a project has been widely promoted, at which point early investors may have already started to take profits. Understanding this pattern can help you avoid becoming a "greater fool."

15. Give yourself time to grow

Success requires time and patience. Do not expect to get rich overnight, but focus on steady growth in the long term.

16. Pursuing True Freedom

Financial freedom should not be the ultimate goal, but a means to enable you to pursue a more meaningful life. Think about what kind of lifestyle you truly want.

17. Full-time investing needs careful consideration

Full-time involvement in the crypto market requires a high level of investment and self-discipline, with no guarantee of success. Before making this decision, one must thoroughly assess their abilities and preparedness.

18. Reflections After Success

When you succeed in the market, you may find that money doesn't solve all problems. Set life goals that are more meaningful than money to achieve true satisfaction.