The vortex of the cryptocurrency world devours not only money but also humanity. Here, every decision amplifies your original self.
Last year, I met a boss who started in traditional industries. This brother, at his peak, made a net profit of 300,000 a day, with a net worth in the nine figures. People in the industry described him as 'having the spirit of the grasslands on the outside and the scholar's spirit on the inside.' Yet, such a person, who navigated the traditional business world with ease, stumbled badly in the cryptocurrency space.
He was initially tricked by CX (pyramid scheme) into buying NFTs, not understanding what a wallet or blockchain was, only hearing from others that it could make money, so he directly threw in 1,000,000. A few months later, this investment rose to 5,000,000, and he didn't sell, but later it dropped, and he only made 1,000,000 when he exited.
Thus, he stepped into the crypto world, being tightly drawn in by this 'too amazing' circle.
01 The Illusion of the Crypto World: The places rich people play in must be profitable
Insiders know his financial strength and all introduced various 'money-making tricks' to him in the crypto world. The resources he encountered were indeed mostly from people who made money in the crypto world; some recommended Bitcoin to him, and he was tempted after hearing just a few words.
He spent 30 million, buying Bitcoin at an average price of 85,000 USD. I asked him why he was investing so heavily, and his logic was simple and direct: 'This thing is played by rich people; to make money, you have to follow the rich.'
He knows nothing about decentralization, digital gold, or the foundational concepts of blockchain; he only believes one thing: where rich people gather, there is surely money to be made. He once had a painful experience in stock trading, where he followed someone's recommendation to buy a stock, held it for five years, and instead lost 7 million, after which he only dared to 'make a quick trade and leave' in the stock market.
In the crypto world, his mindset was also so shortsighted.
02 The Trap of Swing Trading: Selling off a 30 million position
The price of Bitcoin fluctuates, pulling at his nerves. He observed for a long time, feeling that every fluctuation was a profit, planning to sell first and buy back when it drops.
As a result, this 'smart' swing trading led him to encounter a surge right after he sold, making only 500,000 from a 30 million principal before exiting early. He regretted it deeply, always waiting for Bitcoin to drop back to 70,000-80,000 USD to re-enter, but that opportunity never came again.
One type of person is smart, but their downside is that they are too smart. If he only invests 5-10 million, he might be able to hold on. But pushing too hard ultimately brings destruction.
03 Quantitative Scam: 10 million assets on the train went bankrupt
One of his younger brothers is a long-time friend of mine, and this year he specifically asked me if quantitative trading is reliable. I told him directly: 'It's not reliable.'
Someone in his circle displayed a trading account, claiming annualized returns were doubled, with pictures as proof, and he believed it. I still insisted: 'This is just a phase of good market conditions; it should run continuously for 4 years to see stability.'
Tempted by high returns, he first invested 500,000 and saw initial returns, so he increased it to 10 million. In the first month, he was able to earn 4%, looking like a sure win.
However, on October 11, while on a train to Hong Kong, he received a notice of liquidation. 10 million evaporated instantly; this was about one-seventh of his fortune.
That quantitative company later avoided contact, claiming they were 'afraid of life-threatening dangers.' To put it bluntly, they just didn't want to take responsibility.
04 The Real Face of the Crypto World: Everyone is a 'real person' in front of massive money
In the face of money, everyone is a real person, and everyone is not a good person. I am not a good person, and neither are you. No matter how good you were before or how detached and righteous you appeared, it is all useless.
Money is the most real thing. As long as there is enough money, everything will reveal its true nature; you are who you are. When a person makes a big mistake, due to the instinct of seeking profit and avoiding harm, they usually try to push the responsibility onto others.
A day in the crypto world is like ten years in the human world. Coinglass data shows that in the last 24 hours, more than 160,000 people have been liquidated, with a total liquidation amount reaching 568 million USD. As a veteran in the crypto world said: 'History is always remarkably similar; many people are about to go bankrupt.'
There is a type of person who appears to have a natural indifference; they have grown up through the collapse of trust. They have walked alone through moments of despair, and now they have become very clear-headed.
The industrial boss later disappeared. It is said that he returned to the traditional industry to continue his business. The quantitative company that made him lose millions had already changed its name and continued to lure the next batch of investors dreaming of getting rich overnight.
The crypto world does not create wealth; it only transfers wealth and amplifies human nature. Here, the most important thing is not technical analysis, not market judgment, but a clear understanding of oneself. No one can survive long-term in this market by following trends and self-deceiving; this is the bloody truth that the 30 million tuition fee tells us.
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