Besides luck, how can you beat the market?

Original author: Route 2 FI

Original compilation: TechFlow Intern  

If you want to make money in cryptocurrency, You have to be in the industry for a long time. The successful people you look up to in the cryptocurrency space today are all self-made and have contributed to the industry. Most people know that the cryptocurrency market can be brutal, so knowing these things will help you survive in the market better in the long run.

1/Protect capital

The market is in It plummeted 75% after peaking in January 2018. The whales have now learned from this incident and are taking profits in the 20-21 bull market.

They understand that wealth preservation and capital protection is the only way to survive in the long run.

Never give out your mnemonic or keys to anyone, cryptocurrency is like a dark forest, if you Exposed and no one can save you, there is no customer service in cryptocurrency.

If someone knows your seed phrase or key, your journey in cryptocurrency is basically over.

2/Transaction Options

Encryption There are two camps** on Twitter: long-term investors and traders**.

Long-term investors will say that the only thing that works is holding tokens and DCA every month. On the other hand, traders feel that the narrative is changing so quickly that they often switch positions.

Of course, I agree with some parts of these two camps, let me talk about the philosophy of long-term investors first: hold the tokens you hold. Among cryptocurrencies, the only ones I would be willing to hold long-term using the DCA strategy are BTC and ETH.

If you compare the top 100 cryptocurrencies by market cap four years ago with today, how many are still in the top 100? Do you get me? The odds are slim that your favorite crypto token will be around for a long time, slowly dying if not going to zero.

Don't be full, don't be full, don't let investment become your burden. So, learn the technical indicators and trendlines that traders' camps use to decide when to do what.

Learn when and where they buy and sell. While it may look like astrology to some, professional traders are using tools, mental models and frameworks to protect their capital.

If you don't have a little technical knowledge, you will see the maliciousness of this market. I remember the first time I tried crypto trading with leverage. I lost $1,000 in 2 minutes...

If you don't know which direction you should take, a good tip is to use your Trade on a demo account before owning real money.

Well yes it doesn't feel the same as a real offer but it will teach you about leverage and you will see what you lose/make in crypto How fast.

Cryptocurrency volatility is another world compared to the stock market. You can get a huge return on your money by betting all your money on Meme and Ponzcoins, but 9/10 people actually lose money.

You will never hear from underdogs, because of survivor bias, stories of get rich overnight will linger in your world.

3/Keep learning, keep improving

Find like-minded people. Align with people in your industry who are naturally curious and share your goals. Look for someone with a high IQ, a desire to succeed, and a lot of energy. Like making friends with founders, builders, and others like that.

This way, you learn by learning from friends who know better than you, meeting weekly via Zoom to discuss ideas.

This will give you more inspiration and possibly shorten your research process.

But keep DYOR at all times. Never trust a person blindly. Please think twice before choosing to ally with someone for business opportunities in this field.

4/ choppy market

with Cryptocurrency is not a very efficient market compared to other markets, and getting into new projects early can make a lot of money. But the cryptocurrency narrative changes so quickly that what is trending today may be a poor choice tomorrow.

Position control has become the most useful knowledge in this industry.

Before entering, think carefully, do a lot of calculations, I'm sure you don't want to lose your money. If you can't explain in two sentences where the income of your Defi platform comes from, then you are the source of income. This test applies to many DeFi protocols.

5/Increase influence

if If you want to make a difference in the cryptocurrency space, you need to be willing to change your mind quickly. Don’t be the big guy who supports an ecosystem no matter what happens, and if the narrative changes, you should too.

Cryptocurrencies don't work like index funds in the stock market, index funds can't be worth zero, but your altcoins can. Acknowledge your misjudgment and sell at a loss if necessary.

Always remember opportunity cost (more on this later in this topic).

The easiest way to get noticed by others is to grow your followers on Twitter. What's the best way to do this? Content created by:

1. Youtube videos 

2. Twitter threads 

3. Podcast Episode 

4. Blog Writing

Choose the medium you use most or the medium you want to be the best . It is much better to have a good mastery of one medium than to be equal in all of them. But the most important thing is to be consistent, you need to clock in on time every day.

Through a specific point to achieve focus growth, everyone has something that they are naturally good at. Go the extra mile at this point and use it to your advantage. Like, I'm good at writing, which is why I've always prioritized writing over making Youtube videos or starting a podcast.

If your content is specific enough, people will read your tweets and follow you because you wrote it. This becomes your moat and no one can compete with you because you have built a reputation that people trust.

If people ask you if you want to have a meeting, say no 90% of the time. Most meetings are pointless, and almost everything can be resolved with words. Your time is best spent creating. If you need to have a meeting, be sure to set an agenda.

6/Opportunity cost

This makes We thought about opportunity cost. This applies to many fields.

For example, portfolio allocation. I've talked to a lot of people, and one thing that almost all of them have in common is how hard they try to hold on to the anchor bias.

"My portfolio is down 80% but I will sell my token once it's back to cost".

Opportunity cost is selling a coin at a loss and investing it in something with stronger fundamentals/trends.

Another point is full-time cryptocurrency: When you get to a certain level, prioritizing full-time cryptocurrency may be more important than working on normal Work is more beneficial.

But make sure you have a solid capital base to fall back on and don't quit your job if you don't have a plan.

7/Time Cost

As much as possible Multiple outsourcing. I remember being part of the FIRE movement (Financial Independence for Early Retirement) when everything revolved around being as frugal as possible.

While saving money is a good thing, being overly frugal can cost you time.

Value your time, if you have specific knowledge, you must protect your time at all costs, you don't want to end up spending it on something that won't The areas that bring any extra value to your life.

8/ Speciality cost

If you want to join a cryptocurrency startup, make sure to work in your field of expertise. You might think that a startup only needs developers, but no, marketing is just as important. A good deal that no one has heard of won't go far.

I think there is an unfilled opportunity in this area and that is copywriting. The documentation and protocol threads are too high-level for most people.

This could be a business opportunity to start a marketing agency that basically writes an ELI5 thread for a DeFi protocol.

Share your thoughts in public. You'd be surprised how many people want to read your thoughts. 99% of people are consumers and 1% are creators. If you think you're saturated with what you want to write, think again.

9/A small goal

Set yourself a goal of how much money you want to make. With goals in place, it's easier to stay consistent and focused. You don't need to make all your money in one year to play a long-term game.

Also, it helps to have milestones along the way. For example, buy yourself a nice gift when you hit 25% of your overall goal.

There are endless ways to make money in cryptocurrencies. Trading, DeFi, and NFTs. You don't have to stick to just one, but you must focus on the one you are good at and you will get better.

Like me, I mainly focus on DeFi, but for a while I also tried to understand NFT.

I remember I spent too much time on rarity.tools and Discord, and in the end, I didn't get much impression.

10/Summary

When you finally When you have achieved something in the cryptocurrency field, you find that it is not what you originally wanted. You have money, but your life is still the same. So, make sure you have more life goals instead of money goals, and a colorful life will bring you different happiness.

Original link
< /blockquote>

Welcome to join the official BlockBeats community:

Telegram Subscription Group: https://t.me/theblockbeats

Telegram Discussion Group: https://t.me/BlockBeats_App

Official Twitter Account: https://twitter.com/BlockBeatsAsia