Thị trường tiền điện tử là một thị trường tài chính rất mới và tôi tin rằng nó có tiềm năng hơn nhiều so với các thị trường khác như Cổ phiếu và bất động sản. Nhưng trong lợi nhuận khổng lồ đó, cũng có nhiều rủi ro tiềm ẩn.
Có nhiều nhà giao dịch thực sự làm giàu nhanh chóng từ thị trường tiền điện tử nhưng cũng có nhiều người phá sản.
That is also the nature of a financial market, when 95% of the crowd of players will lose money. Only a small portion actually makes money and gets rich sustainably from the market.
Therefore, a completely new person without the right mindset or knowledge will easily be brutally "beaten" by this market. The market is always fair, only those with knowledge and strong enough internal strength have the right to hold assets.
I am not an expert in this field, I just share my personal experiences and countless lessons learned during 2-3 years of investing in the market.
The market is not a place to make money easily and quickly
“The speculative trading game is the most attractive game in the world. But it is not a game for those who are stupid, lazy to think, have poor emotional control and those who want to get rich quickly. They will die in poverty.” - Jessie Livermore
Once you have joined the financial market, especially crypto, you should immediately stop thinking that this is a place where we can get rich quickly in an instant without needing any knowledge. The market will definitely kill you for those thoughts. The nature of the financial market is that money flows from people without knowledge to people with knowledge. Only the strong can hold assets from others, no exceptions.
Those people will take advantage of the greed and weak psychology of the crowd to gain huge profits for themselves. Once money is involved, who is not greedy by nature?
Although the goal is to make money in the market, not everyone "Makes Money Action". Have you ever wondered what you have prepared to make money in this market? How much money do I plan to put into this, when do I plan to collect and buy this coin, when will I cut my losses, who will lead me, has that person really made money from this market? What if I lose that amount of money? Will it affect my life too much?
I think No, nothing at all? Besides money and greed, we have nothing. That's why more than 95% of investors fail in the market. However, because of greed, some can withdraw but most still try to stay, adding more money to stuff more in the hope of getting out of trouble. But in the end, I received a painful ending.
1 Understand Your Position
Clear definition will help you determine risks, and profit potential. Basically, the financial market will usually be divided into 5 main levels (I will go from high to low position).
Banker: the highest layer (government), controls transaction activities, charges taxes to profit from traders and investors in the financial market.
Creators: include projects, exchanges, investment funds with large amounts of money, they create games with many different games, manipulating the market. So have you seen that in the past uptrend season, there were many big trends like DeFi, GameFi, with the purpose of attracting and attracting new participants.
KOLs: famous, influential people with their own communities participating in the market. This is also an important class as they are responsible for educating the market, knowledge, and trends to easily pull the crowd into the game of creators. There will be truly qualified people who want to help you get ahead or just attract the crowd to make money.
Trader: class of players participating in the market who actually make money from reasonable, logical investment strategies. They have full knowledge, experience in the market and a stable mentality. They learn and guess what the game maker wants to aim for and plan their investment strategy as soon as possible
Player: This is the last class (95%), also the class that loses money to the 4 classes above when they only "play" in the market, not trade. They enter the market with the mindset of wanting quick wealth, not learning more knowledge. Only when they have experienced enough, have passion, and accumulated enough knowledge, will they gradually advance to the 4th layer - Trader and make a profit.
There is a constant rule that there is no way to have a high position from the beginning. All newbies start as Player, before becoming Trader -> Kols -> Maker -> Banker. To become influential and community-based Kols, they must first be a veteran, experienced trader and make money, right? The higher the position, the lower the risk and the greater the profit will be.
Who do you see yourself in these ranks? Who do you wish to become? Rising to a higher position will require the process of accumulating knowledge, experience, and relationships in this market. There is no shortcut at all!
2 Three pillars of knowledge for victory
To be able to survive in the crypto market, or any financial market, you need to clearly understand the following 3 pillars of knowledge:
Technical analysis: “price lines reflect everything”. Before news of the project came out, its price line was already running in one direction, due to manipulation to make profits from big players. Technical analysis was born to recognize those signs, from which small traders can make profits following the waves of larger organizations participating in the market. Look at the chart, understand whether the price is high or low, evaluate supply and demand, determine potential entry areas, TP, stop loss, to make a profit as well as protect your capital.
Fundamental analysis: Focuses on analyzing the business model of investment projects, reading financial reports, especially the future supply and demand of a token through analysis of tokenomics, token unlock schedule, application Token usage, user needs versus products. Perspectives on investment trends developing in the upcoming market, what trends will rise, and what are the most potential tokens in that field
Macroeconomics: analyze the world economy, growth rate, correlation between inflation and financial market cycles, grasp important economic and financial news such as CPI index, interest rate unemployment, exchange rates... Macro analysis will determine the psychology and cash flow trends of consumers, whether they will keep more money or focus on investing in assets with higher risk.
These three pillars of knowledge are an important foundation and complement each other so you can survive and earn stable profits. Maybe you are good at fundamental analysis, understand that this project has potential and can grow in the future, but do not know how to do technical analysis to find good price ranges. In the end, you go all in, holding on to your capital and feeling discouraged when you have to endure losses.
Understanding the potential is one thing, but more importantly understanding whether your position at that price range is profitable or not is another story.
90% of old altcoins will not return to their original ATH level
During the past uptrend season, we were able to see many crypto projects xx hundreds of times such as CAKE, UNI, SUSHI, ALPHA,... in the trend of DeFi or top L1 projects such as ATOM, AVAX, SOL, ADA,... Most tokens that pumped x many times last season during big trends are very difficult to grow again and reach ATH. Some reasons explain this problem:
Most tokens in crypto have no practical value, people only use them for the purpose of making money (like the DeFi farming trend). Profits no longer exist, people will move on to new projects. That is the nature of projects in the crypto market, with the sole purpose of making money. Therefore it is difficult to maintain long term.
New season, new game, creators will aim to create games and push prices for projects that create newer things, attracting more users. Will they bother pushing old tokens back to ATH where many other investors are swinging to the top? If they don't really play an important role in this market (like BTC, ETH)
Therefore, to invest in high profits, pay attention to new projects and emerging trends recently and find out whether they will really explode even more strongly in the future? Those are tokens whose creators may need to push the price to make a profit.
Pay attention to security issues
I once lost a large amount of money in just a few minutes when I did a walk-in but wasn't careful and revealed my keys. Crypto is a very young financial market, with only about 5% of the world's population actively using the network. DeFi remains the biggest focus of development but is still mired in many controversies over security issues (In 2021, more than $14 billion was scammed from users through DeFi).
Big profits always come with high risks, especially in this market, you need to clearly understand technical operations to ensure the safety of your assets.
These are things that newcomers to the cryptocurrency market need to pay attention to. The cryptocurrency market is a market with a lot of profit potential for the coming season, but getting rich from the market is not for those who are lazy and want to get rich quickly.
Determine your goals to make money in the markets, carefully plan your strategy, gain knowledge and experience daily and clearly understand your position in the game. With perseverance, I believe you will be able to do it and succeed in this fierce market.
