In 2017, I was forced to sell 3 bitcoins for 20,000 USD in an emergency, which would be worth 600,000 USD today. If there had been collateral borrowing back then, I definitely wouldn't have made this foolish move. But regret is useless; after 10 years in the crypto world, rolling from 5,000 USD to millions in assets, I've realized one thing: making money doesn't rely on luck but on accurately grasping the certainty trend of 'consensus + compliance.' Here are three practical tips that beginners can follow to avoid wasting 5 years.
1. Core assets are the ballast, and JPMorgan has already certified this.
In my early years, I played with hundreds of altcoins, and I ultimately found that only Bitcoin and Ethereum could withstand the bull and bear markets. Why?
Bitcoin is “digital gold”: The Fed Chairman Powell personally defined it, and institutions like JPMorgan now treat it as a traditional asset, with collateral status equivalent to stocks and gold.
Ethereum is the ecological foundation: DeFi, NFTs, and chain games all run on its chain, firmly holding the second-largest market cap. Institutions accepting it as collateral essentially recognize its underlying technological value.
Advice: Newbies should focus 80% of their funds on these two assets, and explore with the remaining 20%. Don't chase “10,000x MEME coins”; statistics show that this type of coin has only a 12% survival rate over two years, which can be deadly.
Second, utilizing assets is the key; collateral lending opens up new ways.
In the past, holding coins meant waiting for price fluctuations, but the situation has changed:
Collateral for cash flow: JPMorgan allows institutions to borrow against Bitcoin/Ethereum, and ordinary people can do similar operations through compliant platforms (like Coinbase custody). When in urgent need of cash, there's no need to sell assets at a loss; just use your coins as collateral to borrow USD.
Beware of leverage traps: But remember! The loan amount should not exceed 50% of the collateral value. The crypto market is highly volatile, and borrowing too much can lead to liquidation. Data shows that users with 10x leverage have an average survival period of only 17 days.
Last year, I used 30% of my Bitcoin as collateral to get some money for replenishment, and I made an additional 40% by catching the bull market. Assets must be able to move; that is true wealth.
Third, follow compliance, don't run after KOLs.
The crypto world is no longer a lawless land:
The regulatory trend is set: The U.S. passed the (GENIUS Act), Hong Kong issued stablecoin licenses, and the People's Bank of China is promoting the digital RMB. The Trump administration even wanted to make the U.S. the “cryptocurrency capital.”
Institutions are entering in bulk: BlackRock and Fidelity have launched Bitcoin collateral services, and Morgan Stanley plans to allow E*Trade users to trade cryptocurrencies next year.
Beginners, remember:
Only choose licensed platforms (like Coinbase, compliant ETFs), stay away from “rebate” scams;
Stay away from “sure-win projects” promoted by Twitter KOLs; MIT research shows that 68% of popular coins halve in value within a month;
Regularly study regulatory policies (like stablecoin regulations); institutional trends are more reliable than rumors.
Lastly, a piece of mindset advice.
I have seen too many people chase highs and sell lows, losing everything; those who survive are the “anti-fragile players”:
Do not operate within 24 hours after losing money to avoid emotional trading;
Trade no more than 3 times a week (high-frequency trading has a loss rate of 92%);
Invest spare money, with single projects not exceeding 5% of total funds.
The crypto world in the next decade will definitely be a game of compliance and institutionalization. JPMorgan's recent moves are not the end but the beginning—when more banks follow suit, the demand for Bitcoin and Ethereum as collateral will explode. Ordinary people can steadily acquire core assets and make good use of compliant tools, even small funds can roll into a snowball.
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