The secret to thriving in the crypto market for the long term

Recently, the global market has generally been sluggish, and the crypto market is no exception. However, the market always has cycles, and there will definitely be a rebound after the trough. Work during a bear market, reap rewards during a bull market. In fact, the downturn in the market can better test the strength of web3 teams. Many well-known giants in the crypto industry, such as a large centralized exchange and a famous wallet, have grown through multiple rounds of bull and bear markets. To succeed in the crypto market, one must possess long-term thinking. The following suggestions can help you survive in this market for the long term:

1. Protect Capital

After the market peaked in January 2018 and plummeted by 75%, many investors learned their lessons and took profits in the bull market of 2020-2021. They understood that preservation of value and capital protection are key to long-term survival.

Never share your mnemonic phrase or private key with anyone. The world of cryptocurrency is like a dark forest; once exposed, it's hard to save yourself. There is no customer service to assist you here. If someone knows your mnemonic phrase or private key, your journey in this field is basically over.

2. Weighing Trading Strategies

In the crypto market, there are mainly two factions: the long-term holding faction and the frequent trading faction.

Long-term investors believe that the most effective strategy is to regularly buy and hold tokens for the long term. Traders, on the other hand, think that market changes are too rapid and require frequent adjustments to their positions.

Both views have some merit. In terms of long-term holding, I personally am only willing to hold and regularly invest in BTC and ETH.

If you compare the market capitalization rankings of the top 100 cryptocurrencies from four years ago to now, you will find that very few projects have been able to maintain their positions over the long term. The likelihood of your favorite altcoin surviving long-term is very low; even if it doesn’t go to zero, it may gradually be eliminated.

Don't go all in, and don't let investing become a burden for you. Learn some basic technical analysis indicators and understand trend lines; these can help you judge the timing of buying and selling. Although for some people this may seem like astrology, professional traders use these tools and models to protect their capital.

If you know nothing about technical analysis, it's easy to be deceived by the market. When I first tried leveraged trading, I lost 1000 dollars in just 2 minutes...

If you are not sure how to operate, it is recommended to practice on a demo account first. Although it feels different from the real market, it can help you understand the power of leverage and experience how quickly profits and losses can occur in the crypto market.

Compared to traditional stock markets, the volatility of cryptocurrencies is on another level. You might gain high returns by betting on Meme coins or Ponzi projects, but in reality, 90% of people end up losing money. Survivor bias will make you only hear the stories of overnight wealth while not seeing the lessons from the losers.

3. Keep Learning, Keep Improving

Find like-minded partners. Form alliances with those in the industry who are naturally curious and share the same goals. Look for intelligent, success-driven, and energetic individuals, such as founders, developers, and so on.

By learning from friends who are more knowledgeable than you and discussing ideas weekly through video conferences, this will greatly inspire you and shorten your learning curve.

But always maintain independent thinking. Do not blindly trust anyone. Before choosing to cooperate with someone, be sure to think twice.

4. Coping with Highly Volatile Markets

Compared to other markets, the efficiency of the crypto market is relatively low, and early entry into new projects may yield substantial returns. However, the narratives in encryption change so rapidly that today's hot topic may become a poor choice tomorrow.

Position management has become the most important skill in this industry.

Before entering, you need to think carefully and do sufficient calculations; I'm sure you don't want to lose money. If you can't explain in simple terms where the profits of the DeFi project you are participating in come from, then you are likely the source of the profits. This rule applies to many DeFi protocols.

5. Increase Influence

To succeed in the cryptocurrency field, you need to have the ability to change your mind quickly. Don't be the kind of stubborn person who supports a certain ecosystem no matter what happens; if the narrative changes, you should keep up with the times.

Cryptocurrencies do not operate like index funds in the stock market. Index funds are unlikely to go to zero, but your altcoins might. Be brave enough to admit misjudgments and decisively cut losses when necessary.

Always consider the opportunity cost (, which will be discussed in detail later ).

The simplest way to increase influence is to boost social media following. The best way to achieve this goal is to create content:

1. Video
2. Social Media Theme
3. Podcast program
4. Blog Writing

Choose the medium you are most familiar with or want to master the most. Mastering one medium is much better than being mediocre in many. But the most important thing is to stay consistent; you need to stick to it every day.

Find your own strengths; everyone has areas they are naturally good at. Focus on this and leverage your advantages. For example, I excel at writing, which is why I have always prioritized writing over making videos or starting a podcast.

If your content is unique enough, people will pay attention to your updates because you are an expert in the field. This will become your moat, and no one can compete with you because you have built a reputation of trust with your audience.

If someone invites you to a meeting, you should decline 90% of the time. Most meetings are meaningless, and almost everything can be resolved through written communication. You should spend your time on creation. If a meeting is necessary, you must set a clear agenda.

6. Opportunity Cost

The concept of opportunity cost applies to many fields.

For example, portfolio allocation. I have communicated with many people and found that they almost all share a common characteristic, which is stubbornly adhering to anchoring bias.

"My portfolio has dropped by 80%, but I will wait for it to return to the cost price before selling."

Opportunity cost means selling a cryptocurrency at a loss and investing the funds into projects with stronger fundamentals or trends.

Another point is about working full-time in the crypto market: when you reach a certain level, fully committing to the crypto market may be more advantageous than working a regular job.

But make sure you have a solid capital base to rely on. If you don't have a well-thought-out plan, don't easily quit your current job.

7. Time Cost

Outsource work as much as possible. I remember I was part of the FIRE( movement for financial independence) and early retirement, where everything was about how to be as frugal as possible.

While saving money is a good thing, being overly frugal can waste your time.

Cherish your time. If you possess specific expertise, you must protect your time at all costs and not waste it on areas that will not add extra value to your life.

8. Expertise Cost

If you want to join a cryptocurrency startup, make sure to work in an area where you excel. You might think that startups only need developers, but that is not the case; marketing is equally important. A good protocol that no one has heard of will not go far.

I believe there is still an unfilled opportunity in this field, which is content writing. For most people, project documentation and protocol descriptions are often too obscure and difficult to understand.

This could be a business opportunity to establish a marketing agency that writes easy-to-understand explanations for DeFi protocols.

Be brave to share your thoughts in public. You will be surprised at how many people want to read your opinions. 99% of people are content consumers, while only 1% are creators. If you think the content you want to write is already saturated, think again.

9. Set Goals

Set a clear financial goal for yourself. With a goal, it becomes easier to maintain consistency and focus. You don’t need to make all the money in a year; think long-term.

Additionally, setting up some milestone rewards during this process can be helpful. For example, when you reach 25% of your overall goal, treat yourself to a nice gift.

In the cryptocurrency space, there are countless ways to make money. Trading, DeFi, NFTs, and so on. You don't have to limit yourself to just one, but you must focus on the area you excel in, and you will become stronger and stronger.

For me, I mainly focus on DeFi, but I have also tried researching NFTs.

I remember spending too much time on various NFT tools and communities, and in the end, I didn't gain much valuable insight.

10. Conclusion

When you finally achieve success in the crypto market, you may find that it is not what you initially pursued. You have money, but your life hasn't fundamentally changed much. Therefore, make sure you have more life goals beyond just financial ones; a colorful life can bring you a different kind of happiness.