A decade of ups and downs in the cryptocurrency world has made me see a truth: the flow of funds will always gather towards value.
I remember in 2017, I fervently chased an altcoin following the 'cross-chain myth', entering the market without even finishing the white paper. Doubling my investment in just a few weeks made me feel euphoric, but six months later, the project team stopped updating the code, the coin price went to zero, and I lost more than half of my principal.
At that moment, I realized that in the chaotic era of cryptocurrency, relying solely on concepts and slogans is no longer feasible.
Now when I see people complaining about the silence of altcoins being due to a 'lack of money in the market', I can only smile. Money has always been present; what is lacking is the real value that makes people willing to pay in the long term.
The two major flaws of small altcoins.
After ten years of struggles, I have come to understand the core reasons why altcoins cannot rise.
Severe homogenization. Many new projects boast 'high performance' and 'large ecosystems,' but they are just old wine in new bottles, lacking substantial technical breakthroughs and real application scenarios. When a project can only rely on marketing to pump its price, it is essentially just rebranding to harvest profits.
The primary market is experiencing a valuation bubble. Now, projects are speculated to sky-high prices before they even launch, peaking upon listing, with retail investors merely taking over. I have seen too many projects in the top 100 on CoinGecko where early investors and KOLs begin to sell off, leaving ordinary users as the 'greater fool.'
Once a fervent believer, I have become a rationalist. Now, when I hear the slogan 'disrupting the industry,' my first reaction is to check GitHub commit records and analyze on-chain data. Those who only paint grand visions without taking action can no longer deceive seasoned investors.
The market structure has been established, and funds are flowing toward value.
The current market structure has long been set—capital is all concentrated in leading assets like Bitcoin and Ethereum.
Why? Because the market has transformed from a cognitive gap into a cognitive battleground. After several rounds of bull and bear market cleansing, investors have become more rational, placing more emphasis on the actual value and technical support of projects.
Small altcoins struggle to survive; occasional spikes are merely early-entry positions taking the opportunity to sell, with no sustained market trend. Those coins with low market caps and small trading volumes are likely to face a situation with no buyers when market sentiment reverses.
Real funds will only flow toward projects with actual technical breakthroughs and application scenarios. For example, Layer 2 solutions, the integration of AI and blockchain, cross-chain technologies, etc., are fields with clear technological pathways that may generate long-term value.
My strategy has shifted: from belief to rationality.
In the past decade, my investment strategy has undergone a fundamental transformation:
I have given up on the long-term belief in altcoins and will only engage in high-certainty trading. I am no longer fooled by grand narratives of projects but focus on macro liquidity cycles. The policy changes of the Federal Reserve are more reliable than any concept of altcoins.
Strictly adhere to discipline; immediately cut losses if momentum is not favorable. I set a strict rule for myself: if a single coin's loss reaches 15%, regardless of whether I expect it to rise afterward, I must forcibly stop loss. This is also why I only lost 5% during the LUNA crash.
For Meme coins, I only use a small position for enjoyment. I recognize their gambling nature and will never be greedy. Meme coins are a game of attention, and one must think about 'who will see it, who will pay for it.'
Position management is the foundation of survival. I always keep 30% of my total capital in cash to respond to extreme market conditions, and no single coin's position will exceed 20% of my total capital.
Survival relies on cognition and discipline.
There is no 'sure profit' strategy in the crypto world, nor are there 'eternally profitable' individuals. Those who can sustain profits in this market are investors who can overcome human weaknesses.
Cognitive advancement beyond the market: one must continuously learn and understand the latest technological developments in the industry. I spend one hour every day reading industry news to deepen my understanding.
Ironclad discipline: establish rules and enforce them strictly, without changing strategies arbitrarily due to market fluctuations. Each stop-loss must be less than or equal to 5% of total capital, and each profit must exceed 5% of total capital.
A clear self-awareness: knowing one's limits and not engaging with projects one does not understand. If I cannot clearly explain the source of benefits from a DeFi project in two sentences, I am likely the 'source' of those benefits.
The market will always have new opportunities; the altcoin season may come again. But only those who have cleared away superficiality and respect market rules can truly seize opportunities.
Surviving is a thousand times more important than making quick profits.
In this 24/7 trading digital jungle, the real wealth code has long been written into the genes of blockchain: technological innovation never ceases, market volatility is always present, and human greed remains unchanged throughout the ages.
When we let go of the delusion of 'a villa by the sea from one coin' and instead cultivate the blockchain value network with an entrepreneur's mindset, time will eventually reward those who are patient.
Money has never been the issue; the issue is whether you are worthy of being pursued by money. Follow Ake to learn more about first-hand information and accurate insights in the crypto space, becoming your guide in the crypto world. Learning is your greatest wealth!
