Author: Cai Leilei

Many people look down on those who have made a lot of money in the crypto market over several cycles, calling them "gambling dogs" and saying they were just lucky. Let me tell you the truth - don't be jealous, those who have made a fortune in the crypto market and held on to it did not do so by chance. You can't deny it.

I won't even mention the countless pitfalls of the early days, which were far more terrifying than today's. Just look at the present - those who have made big money and kept it, their actions in managing their large positions must have perfectly avoided the following:

1. Opening futures contracts

2. Buying a large amount of non-Bitcoin cryptocurrencies

3. Keeping their coins on exchanges

4. High-frequency trading, trying to buy low and sell high

Don't underestimate these 4 things - if you don't closely follow the crypto market, you won't understand. And those who have made a lot of money in the crypto market must have been closely following it and continuously trading in it - the fact that they were able to stick to the above 4 principles after making a lot of money shows that they must have suffered huge losses in the above matters, and after completing their cognitive training, they were able to accumulate a large amount of capital in the crypto market without resorting to gambling methods. Can you call this just luck?

Most people in the crypto market have only "made money before", because their ways of making money are limited to the above few, and they naturally lose it for the same reasons. The problem is that after realizing that the above methods cannot truly make them rich, they still can't find other ways to get rich in the crypto market.

Let me tell you, those who have truly made money in the crypto market and kept it for the long term must meet at least one of the following conditions besides avoiding the above pitfalls:

1. Having a killer product in the crypto market

No matter how much cognitive awareness you have, you will still fall into the above traps and lose your coins. But the key is, you have a product that can continuously make money in the crypto market, and this product can help you make up for the coins you've lost, no matter how many traps you've fallen into in the crypto market. As you gradually become smarter, you no longer fall into those traps, so you have more and more coins - the representatives are CZ, Sun Yuchen, etc. They have all stepped into the novice traps, but the key is that they have products that can continuously earn them back the coins, while you don't, and that's the key difference.

2. Having the ability to invest regularly

If you don't have the ability to create a product, then this is the easiest option for you. Don't say "Bitcoin hasn't multiplied much anymore" - this is not a reason for you to gamble with a large position - when has Bitcoin ever run faster than other coins? In the past, Bitcoin was low, but that was compared to now. Compared to the altcoins back then, Bitcoin was also the slower one, and look where those altcoins are now? Give yourself 10 years, slowly put the money you earn in the next 10 years into it, and let your 10 years of earnings be multiplied by 5 or 10 - this is the best way for ordinary people to enter the crypto market.

The prerequisite is to have a good lock-up mechanism that only allows you to put in but not take out; a good regular investment environment, not one where you invest when you have money and don't invest when you don't, or invest heavily when you think it's low and don't invest when you think it's high; and also an excellent off-chain deposit capability - the stronger your earning ability, the more this rule will benefit you.

All of the above prerequisites are indispensable, and a person who can have the ability to turn the world upside down in the off-chain world, and then be humble and obedient in the on-chain world - this person is truly remarkable, and the money is what you deserve.

3. The coins are locked up

I once participated in an ancient fund where the coins were locked up for 5 years. During this time, the crypto market experienced many ups and downs, but this money was locked up and couldn't be moved. Did I have times when I needed the money in reality? Of course, during this time I bought a house, and the investment returns hadn't come back, and I also had to invest in other projects, so I had to temporarily borrow from the bank. Later, as I played more and more in investment and entrepreneurship, the coins in my own hands became less and less, but when the fund distributed the money, I found that the several shares added up, and I got several hundred Bitcoins - although the fund still didn't outperform just directly holding the coins during that time, the percentage of coin loss in this fund was far less than the part I held myself.

Such things are ubiquitous in the crypto market - a certain nobody bought coins and then became a billionaire after going to jail for fighting, and if he hadn't gone to jail, those coins would have been long gone.

Since then, I have actively locked up the majority of my Bitcoins, and they are still locked up to this day. If you believe in Bitcoin, now convert everything you have into Bitcoin, actively lock it up for 10 years, and then start from scratch. The result 10 years later may exceed what you could have achieved in those 10 years by doing all the seemingly more useful things.

Let me say it again, I have never seen any big shot become a big shot by trading coins - not a single one. Coin trading can't make you a big shot, and leverage can't make you a big shot either. There is no such thing as luck in the crypto market. Your understanding of it must be in place first, then it can become your best tool for getting rich, otherwise you will become its slave in reverse.

In the comments of last month's article, there was a message saying that the person had sold their house and gone all-in with 2x leverage on Ethereum at $3,600, betting on the upgrade in March/April. I asked him why he said not to use leverage, but he still did? He said he was bullish on the market and thought 2x leverage couldn't possibly blow up, as Ethereum couldn't possibly drop another 50%.

Yes, I'm also bullish on the market, but I revere the market, I will never use leverage here. This is not because I'm cautious, but because I understand, while he doesn't.