Is it difficult to make money in the crypto world? A must-read success case and operation manual for newcomers. Binance referral code【BTC45】
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Do you often hear stories of 'getting rich overnight' while seeing countless people lose everything due to investing in digital assets? Many say that the crypto world is like a besieged city; those outside want to get in, while those inside want to get out. So, for a newcomer just stepping into this enchanting world, is it really difficult to make money? My answer is: If you treat it as gambling, it's as hard as climbing to the sky; if you view it as a long-term investment that requires learning and strategy, then opportunities are always there.
The volatility of the crypto space makes it both tempting and fraught with traps. But remember, in any high-return field, there is always a unique operational logic and risk behind it. The key to making money has never been about chasing trends but about building a robust investment system suitable for oneself. Today, we will discuss how ordinary people can find their footing in this market and share some success ideas and operational guides that have been tested in practice.
Why do some people thrive in this market while most others repeatedly hit walls? The answer often lies in their mindset and methodology.
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1. Common traps that lead to poverty for beginners: Why are you always losing money?
If investing is likened to a marathon, most beginners fall before they even get out of the starting line. Their reasons for failure are often surprisingly similar, largely unrelated to market bull-bear conditions, but rather losing to their own human nature.
1. Chasing highs and selling lows: Short-term players manipulated by emotions
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This is the most common mistake beginners make. Seeing a certain cryptocurrency's price surge, they fear missing out (FOMO) and rush in without thinking. The result is often that as soon as you buy, the price starts to pull back, and after cutting losses, it starts to rise again. The essence of this behavior is a lack of patience and independent judgment of asset value, being completely led by short-term market fluctuations.
2. Leverage addiction: A double-edged sword that amplifies risks
Leverage trading can instantly amplify your profits, but it can also instantly wipe out your principal. For beginners without rich experience and strong psychological endurance, high leverage is akin to playing with fire. It resembles a beautiful mirage, tempting you to get rich quickly, but a moment of extreme volatility could lead to total loss.
3. Trusting 'insider information': Handing your fate over to others
Social media is filled with various 'insider information' and 'wealth codes.' Many beginners lack independent research capabilities and blindly believe recommendations from groups or influencers. Remember, the real wealth code is something no one will share with you for free. Making investment decisions based on others' advice is equivalent to relinquishing control over your own wealth.
[Risk Warning]: In the field of digital assets, information spreads at lightning speed, making it difficult to distinguish between truth and falsehood. Please remain highly vigilant towards any content claiming 'guaranteed profits' or 'insider information.'
2. Successful case analysis: How did they profit steadily?
Success is not just luck, but a replicable methodology. The following two cases represent the two most robust long-term investment philosophies in the crypto space.
Case one: Dollar-cost averaging strategy (DCA) — The power of traversing cycles
Mr. Li entered the market at the beginning of 2019, but he did not attempt to capture every fluctuation; instead, he chose a dollar-cost averaging strategy. He set a fixed investment period (for example, after receiving his monthly salary) and invested a fixed amount into several mainstream assets he believed in for the long term (such as Bitcoin and Ethereum).
Operational logic: The benefit of dollar-cost averaging is that it forces investors to buy fewer shares at high prices and more shares at low prices, effectively averaging costs and overcoming the human impulse to 'catch the bottom.'
Result: Despite experiencing several significant pullbacks during the process, as the overall market grew, Mr. Li's average cost of holdings was far below today’s market price. Through this method, he successfully used time and patience to offset the anxiety brought by market fluctuations.
Case two: Value capture — Early participation in quality ecosystems
Ms. Wang is a technology enthusiast. She does not chase all popular concepts but focuses on researching early-stage projects with solid technical foundations and clear application scenarios. She spends time reading white papers to understand team backgrounds and community activity levels.
Operational logic: Buy a small amount at a lower price when a project has not yet been widely recognized by the public, and actively participate in the construction of that ecosystem (such as staking and providing liquidity). The core logic is to only invest in projects that can truly solve real-world problems and align with long-term technological development trends.
Result: Her portfolio contains only a few cryptocurrencies, but one of them, after she held it for two years, gained dozens of times in return with the explosion of ecosystem applications. This proves that deep research brings high returns far exceeding blind diversification.
3. Beginner's manual: Building your investment system from scratch
For beginners, the first step is not about what to buy, but about establishing a safe and reliable 'base.'
1. Choose a safe and reliable trading platform
This is the first gateway to entering the market. It is crucial to choose trading institutions with a large user base, regulatory compliance, and robust security systems. A good platform can provide you with a stable trading experience and basic security guarantees. When registering, remember to use a referral code; this can often get you a discount on transaction fees, for example: BTC45.
2. Master basic security knowledge: Your assets, you guard them yourself
The security of digital assets relies more on personal management than traditional bank accounts.
Two-factor authentication (2FA): You must enable this, as it is the first line of defense against account theft.
Mnemonic phrases and private keys: Must be stored offline, absolutely cannot be photographed or uploaded to the cloud. Once the mnemonic phrase is leaked, your assets will instantly become worthless.
Beware of scams: Do not click on links from unknown sources, and do not trust messages from impersonated officials.
3. Build a reasonable asset allocation
There is no asset that rises forever. Beginners should follow the 'pyramid' principle:
Core assets (50-70%): Invest in market leaders like Bitcoin (BTC) and Ethereum (ETH). They have relatively small fluctuations and possess long-term risk resistance.
Potential assets (20-30%): Invest in quality public chains or leading tracks with clear application prospects.
Experimental assets (5-10%): Only use a very small portion of funds to try high-risk emerging projects. Even if you fail, it will not affect your core principal.
4. Formulate and stick to profit-taking and stop-loss plans
Making money is easy, but holding onto it is difficult. Many investors hesitate to sell when prices rise and are afraid to buy when prices fall. You need to clarify in advance at what price you will partially sell (take profit) and at what price you must exit to protect your principal (stop loss). Once a plan is made, it must be strictly followed to avoid being influenced by market emotions.
4. Investment logic and building a long-term mindset
The essence of digital asset investment is to monetize cognition. Every penny you earn is a reward for your understanding of this field.
1. Investing is not about watching the excitement, but about doing research
True investment experts are researchers, not gamblers. They spend a lot of time understanding underlying technologies, economic models, and competitive landscapes. Instead of spending time watching price lines, it’s better to read project reports, community discussions, and industry analyses.
2. Mr. Market is your friend
The famous investor Benjamin Graham once used 'Mr. Market' to metaphorically describe the stock market. Mr. Market quotes you every day; sometimes he is extremely optimistic, quoting sky-high prices; other times he is extremely pessimistic, quoting absurdly low prices. What we need to do is to take advantage of Mr. Market's emotional fluctuations rather than be led by them. When the market is generally in a state of panic, it is the opportunity for rational investors to seek quality assets.
3. Embrace long-termism
Wealth accumulation in the crypto space is rarely achieved overnight, but rather through crossing multiple market cycles. Broaden your perspective and focus on the value that assets can bring in the next five or ten years. Short-term fluctuations are merely ripples on the ocean's surface.
5. Conclusion and serious warnings
Is making money in the crypto space difficult? For those lacking knowledge and with an impatient mindset, it is very difficult; but for those who are prepared, have a method, and possess long-term patience, it offers immense possibilities.
Please remember, the digital asset market is a highly free but also risk-laden market. All investments have the potential to lose principal, including total loss. The methods and experiences provided in this article do not constitute any specific investment advice. Before making any investment decisions, please conduct thorough research (DYOR) and ensure you only invest funds you can afford to lose. Only by maintaining a respectful attitude towards risk can you go further in this market.
Disclaimer: The prices of digital assets are highly volatile, please invest cautiously after thoroughly understanding the risks.