Wealth before the decimal point relies on wisdom, while illusions after the decimal point rely on greed
My friend Xiao Li recently made an absurd comparison: he used the money he spent on altcoins a year ago to buy half a 'digital Rolex'.
Of course, this is not a real watch, but rather his self-deprecation about his losses. Last year, he jumped into the crypto world with 30,000 dollars, hesitating at the price of bitcoin over 60,000 dollars, and turned to dive into the ocean of altcoins priced under 1 dollar, dreaming of finding the next hundredfold coin.
A year has passed, and his account balance is left with 18,000. Meanwhile, those bitcoins he once looked down upon have doubled in price.
This reminds me of a harsh reality in the crypto space: the poor chase the illusion behind the decimal point, while the rich hold onto the wealth before the decimal point.
One, the hardest obstacle for beginners to overcome: it's not the amount of capital, but the mindset.
'How much can this little money buy in Bitcoin? I can't even make up four decimal places!'
This is what Xiao Li said to me when he first entered the space, and it reveals the psychology of most beginners. Data shows that nearly 80% of new entrants in the crypto space lose money in the first year, not because the market lacks opportunities, but because of flawed mindsets.
Small investors are most likely to fall into the 'high value-for-money trap': thinking Bitcoin is too expensive, they turn to look for cheaper altcoins in hopes of finding the next Bitcoin. However, this is like searching for 'antique watches' in the second-hand market—you might spend 500 yuan on 20 worthless electronic watches, while someone who spent 50,000 yuan on a Rolex 20 years ago now has one worth 250,000 yuan.
The difference is that one is for consumption and the other for investment.
The harsh truth of the crypto market is that 99% of altcoins will eventually go to zero or close to it. You think you're looking for 'the next Bitcoin', but in reality, you're playing a game with less than a 1% win rate.
Two, the secret of the wealthy: don't sweat the small stuff, focus on value storage.
The investment logic of wealthy people in the crypto market is completely different—they do not pursue 'cheap', but rather 'value'.
Why is Bitcoin referred to as 'digital gold'? It's not because of its price, but because of its network effects, security, level of decentralization, and global consensus tested over 15 years. These are the moats that 99% of altcoins will never reach.
Just look at the behavior of project teams: the vast majority of altcoin projects ultimately sell off their tokens to exchange for Bitcoin or Ethereum. What does this mean? Even the creators of these coins want Bitcoin more.
True wealth accumulation is not about how many wildly rising altcoins you have caught, but how many core assets have stood the test of time you hold.
Experienced investors understand one principle: the crypto space never lacks opportunities; what it lacks is capital. Protecting your capital is more important than chasing profits.
Three, my '90/10 rule': use the dreams of altcoins to support the reality of Bitcoin.
If I only had 30,000 yuan to enter the crypto space today, I would allocate it like this:
90% buy Bitcoin—not because it 'only goes up', but because it is the gold standard of the crypto world and the asset most likely to weather bull and bear markets. Dollar-cost average, hold, and forget about short-term fluctuations.
10% buy the altcoins you are optimistic about—this is your 'dream fund' to satisfy your exploratory desire for hundredfold coins. But remember the rule: as soon as you make money, immediately convert the profits into Bitcoin.
I call this method 'using altcoins to support Bitcoin'.
The logic is simple: use the potential high returns of low-probability games (altcoins) to enhance the positions in high-probability assets (Bitcoin). Making a profit is a surprise, while losing does not hurt the fundamentals.
A friend of mine used this method and happened to hit a small coin that multiplied five times with 10% of his funds last year, converting all profits into Bitcoin. Now that small coin has dropped by 80%, but his Bitcoin holdings have increased by 50%.
Four, avoid the trap of the get-rich-quick narrative, focus on long-term accumulation.
What attracts people to the crypto space the most, but also harms them the most, are those stories of 'xx coins rising a thousandfold in half a year'.
Do you know why these stories are widely circulated? Because of survivor bias—only one successful case is repeatedly recounted, while behind it are thousands of accounts that have gone to zero, which no one mentions.
True wealth accumulation is not fundamentally different in the crypto space and the traditional world:
The first 1 million is the hardest; you need to patiently wait for a complete bull market cycle and stick to dollar-cost averaging mainstream assets.
Going from 1 million to 10 million is actually easier because you have a certain amount of capital and experience, which allows you to better grasp trends.
When it comes to amounts above 10 million, you need to think about how to preserve wealth, rather than continuing to go all-in on high-risk assets.
I've seen too many people pursue 'financial freedom in a year', only to find themselves three years later still on the road to breaking even. I've also seen those 'boring investors' who only seek 2-3 times returns in each cycle, slowly rolling from tens of thousands to millions.
Looking back at historical data: those who hold Bitcoin for over 4 years have a 98% profit probability, while frequent traders face a 92% loss rate.
Five, rethink your investment levels: build your positions like constructing a house.
The first principle of crypto investment is to capture the fundamental value of this ecological development.
Bitcoin is the reserve currency and value anchor of the entire crypto world.
Ethereum is the settlement layer and fuel for decentralized applications.
Other public chains are different attempts and supplements in various directions.
Application tokens are the rights certificates of specific products or services.
Your position size should match the importance of these levels.
The most common mistake beginners make is putting 90% of their funds into third and fourth-tier assets while only leaving 10% for first and second-tier positions—this is equivalent to building a castle on the beach but not wanting to buy that piece of land.
True smart money is always accumulating underlying assets, not chasing surface-level trends.
Xiao Li eventually understood this principle, though it came at a cost. He sold off the remaining altcoins and converted them into Bitcoin. He said, 'I used to think I had to get rich quickly, but now I understand that slowly getting rich is actually faster.'
In this highly volatile market, living longer is more important than making quick profits. Remember, all dreams of getting rich have a hidden price tag—possibly all of your savings.
Follow Xiang Ge to learn more about first-hand information and precise points in the crypto space; become your navigation in the crypto world. Learning is your greatest wealth!
