I believe that almost everyone in the cryptocurrency world, as long as they have experienced at least one cycle, has made money—no matter whether you are trading altcoins, holding coins, or doing contracts, almost everyone has made money; basically, there are hardly any who haven't made money, at least I haven't seen any.
But in the cryptocurrency world, those who ultimately make big money are few and far between. Why? Many people think they just didn’t choose the right time to 'sell', but I will tell you, you will never choose well, even if you have made some good choices a few times, seemingly successful flips, and pocketed some profits, it doesn’t help.
The reason is simple, because the cryptocurrency world is your only playground.
There is a saying that 'once you enter the cryptocurrency circle, it is as deep as the sea,' and another saying that 'once you have made money in the cryptocurrency circle, you can no longer look at other industries.' Why? Because during the bull market in cryptocurrency, money comes in too quickly, and thus there is no patience left to slowly earn money elsewhere.
Many people's assets initially had many allocations, but slowly, everything shifted to the cryptocurrency circle — these assets were almost all transferred during the bull market of cryptocurrency because they were skyrocketing every day. Each night, you would find that you missed out on a lot of money, so gradually everything was moved over. Once moved over, it becomes impossible to transfer out again because you no longer pay attention to the fluctuations in other areas.
But there is an unhealthy aspect to this: the cryptocurrency circle has many hotspots and temptations. If your 'venue' is only left with the cryptocurrency circle, then your capital allocation will be very singular — it is almost impossible for someone in the cryptocurrency circle to maintain a long-term cash position; there will always be some wealth effect that draws you in, and then slowly, you will end up fully invested again.
So even if you sell some investments in certain tokens in time and take profits, what does it matter? You will soon be tempted to jump into other targets and fill your positions again, and that is the problem, i.e., 'it's not that you didn't choose the right time to sell,' but rather 'you fundamentally cannot truly sell.'
This is human nature, and I cannot avoid it. I have previously said that I also got stuck in $trump with over 40 million rmb, so I am just like you, and my cost is not necessarily lower than yours. But perhaps my advantage is that I know myself and human nature better than many others, so I will put shackles on myself, but they will not — many of my asset allocations cannot be withdrawn in the short term, so even when I encounter the best opportunities, I cannot go all in by moving assets from other places — and regardless of whether the money I play with is a loss or a gain, that is all game currency; if I earn game currency, I will allocate a little to assets, and if I lose, I will summarize my experience and continue to play — I just need to ensure that the quantity of those things that can truly be defined as 'assets' is constantly increasing.
This point is especially noteworthy for players who have a large proportion of game currency; always swap a little to 'assets' instead of trying to achieve financial freedom solely through game currency — if you have this mindset, even if you strike it lucky once, you will eventually fall due to other game currencies.
Many people have also asked me what to do when all assets are locked up and you need money. You earn it by using the interest from other assets, which is enough to cope without needing to turn a large amount of assets into 'liquid status' — having a large amount of assets in a 'high liquidity' state may seem to increase flexibility, but it is actually a very bad habit.
You must keep yourself in a state of 'thirst,' meaning always lacking money, as this will drive you to earn continuously while ensuring that you invest limited amounts in anything, no matter how promising it seems — just having this thought in your mind is useless. Just like over time, you will definitely encounter a crush you really want to pursue; as long as the conditions are met, you will go for it, but you know that this matter actually has little significance and is not worth spending too much cost on, because your thoughts may change after a while, and you will soon meet the next one. So you should avoid putting yourself in a 'condition satisfied' state, rather than just telling yourself 'this is meaningless' — people do not always act rationally.
But remember, always being in a state of lacking money does not mean you are really short on cash. You do not have to exhaust your money to feel desperate; simply locking up liquidity is enough — you have plenty of assets, but the proportion you can use at any given moment is very small, and that is sufficient. For example, some people lock up BTC, some buy insurance that requires them to put in money regularly, some need to pay mortgages regularly, and others invest in funds that cannot be redeemed for several years, etc.
What should be locked up for the long term? What is worth locking up for the long term? What has the highest long-term compound return rate? You need to keep learning and make your own judgments; perhaps everyone's answers are a bit different. But the strategy of 'locking up most of the liquidity' is something you can refer to. It can not only prevent you from playing away your money due to overconfidence but also keep your asset ratio in a healthy state — it's not that you want to be healthy, but you can only be 'forced to be healthy'; it's not that you don't want to eat junk food, but your stomach is only this big.
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I am Awen, thank you for reading.
