How to view the cryptocurrency market and how to control your investment direction as an investor?

The core driving force of the digital currency market is profit-seeking, but the revolutionary vision of blockchain technology provides long-term value support for this market. Profit and loss imbalance is the norm in the current market, stemming from high volatility, information asymmetry, and emotional behavior of investors.

#Many investors enter the digital currency market not out of a profound understanding of blockchain technology, but are attracted by cases of skyrocketing prices. For example, Bitcoin rose from a few cents in 2010 to nearly $70,000 in 2021, attracting a large number of speculators. Similar stories have played out repeatedly with other currencies like Ethereum and Dogecoin. This “get-rich-quick effect” makes the market more like a gambling ground rather than a testing ground for technological innovation.

There are also many investors who enter the market with unrealistic expectations, such as “doubling in the short term” or “financial freedom.” Such high expectations often lead to disappointment during market corrections, and even trigger doubts about the entire industry. In fact, successful investors usually possess a long-term vision and strict risk management strategies.

Overall, pragmatic investors can cope with this norm by setting clear objectives, strictly managing risks, conducting in-depth research, and maintaining a long-term perspective. In the future, as the market matures, regulations improve, and technology advances, the digital currency market is expected to become more stable and rational, but the speculative atmosphere in the short term still needs to be approached with caution.