Why do some people lose everything trading cryptocurrencies while others achieve financial freedom?
The results of trading cryptocurrencies can generally be classified into three categories: one leads to total ruin, another to financial freedom, and the third involves a wild trading experience that yields modest returns. Let's discuss these three situations.
The first type is trading cryptocurrencies that leads to total ruin.
In this situation, many people are eager to get rich quickly, using leverage, trading low-quality coins, and even borrowing money to trade cryptocurrencies. The volatility in the crypto market is greater than in traditional financial markets, and a correction of over 50% is not uncommon, which can lead to direct liquidation for those using leverage. Alternatively, a low-quality coin might go to zero or a project might run away, leaving only the holders bankrupt.
There are also frequent incidents of lost private keys, exchanges being hacked, phishing scams, and other events. Such security risks and operational errors should be avoided as much as possible.
The second type is those who achieve financial freedom through trading cryptocurrencies.
The way to wealth is simple, but very few are willing to gradually become rich. The majority who achieve financial freedom through trading cryptocurrencies are simply those who hoard coins. They only buy Bitcoin and mainstream coins, purchasing when they have money, holding without selling, passively fully invested, regardless of volatility. They should not be called traders but hoarders, just as some buy houses and others buy gold as quality assets. In short, it’s about heavy investment + long holding.
The third type is those who operate as fiercely as a tiger, but when they look at the returns, they find it’s just two hundred and fifty.
In this situation, a large part often consists of smart and diligent people. They will work hard to research various dog coin projects and airdrops, but they often do not dare to heavily invest in these targets themselves, so despite their hard work, they don’t earn much.
There are also various swing traders who are always watching the market, thinking they have avoided small pullbacks, yet they can easily be thrown off and miss out on a big trend.
Finally, there are those whose personalities are not suitable for investing. Investing goes against human nature, but most people chase highs and sell lows, FOMO into high positions, cut losses at low positions, or sell at the first sign of a rise, unable to handle big trends.
In investing, the cultivation of character is more important than IQ. Let’s cultivate together.#比特币波动性 $BTC
