Whether it's the Fcoin or FTX incident, it has surprised many people. The crypto industry is always at risk of black swan events, so I now also allocate to cold wallets to avoid extreme risks. Furthermore, I do not put all my assets in the cryptocurrency market; I also have allocations in U.S. stocks, gold, and fiat currency deposits, because there is no such thing as 100% safety in this world. Only through this method of diversifying risks can we reduce the potential impact of future black swan events.

Having experienced a lot, I have now formed some of my own logic for analyzing market trends or projects.

Firstly, I look at where the liquidity comes from. For instance, the money in this round comes from the high-risk appetite liquidity in the U.S. dollar market, leading to an increasing correlation between Bitcoin and the U.S. stock market. Essentially, Bitcoin is at the forefront of liquidity risk appetite. Secondly, I focus on the long-term trends of projects, primarily looking at the vision of the team and the intrinsic motivation of the founders.

Looking back, I want to tell my past self, who just entered the industry, to be cautious and to advance step by step, but also to believe in the future of the industry. Then, in the right direction, such as accumulating Bitcoin, be a bit braver and bolder.