Source: Talk Li Talk Outside
Many people enter this field hoping to get rich overnight, but I suggest you just think about it. If ordinary people can get rich overnight by entering this field, then I guess there would be no poor people in this world.
It can only be said that compared to the traditional financial field, the crypto field is still in a relatively gray area, so there are many speculative opportunities hidden in it, especially during the bull market, where many projects can see daily gains of several times, even dozens of times, and some MemeCoin can even surge hundreds or thousands of times within a few hours.
Overall, people (mainly retail investors) in this field are currently accumulating wealth mainly through the following ways:
- Holding tokens that are likely to grow over time (such as BTC)
- Participating in speculative trading of tokens that grow rapidly in the short term (such as some Altcoins or MemeCoin)
- Obtaining relatively high annualized returns through DeFi and other means
But based on past experience and observation, perhaps only 1% of those who try to participate in speculative trading of tokens with rapid short-term growth can ultimately make big money.
Many people who enter this field are easily influenced by various news and opinions of others (such as various KOLs), and often see what's hot and immediately participate in it, becoming bagholders without realizing it.
In previous articles of Talk Li Talk Outside, we have always advised to focus on 1-3 sub-sectors that you are most optimistic about and do in-depth research and layout, in order to discover and layout potential opportunities in advance. That is, we need to focus on the strong narratives that we are optimistic about, such as AI, RWA, DePIN, Memecoin, etc., and then look for potential opportunities within them, rather than just blindly buying whatever others say is good.
Or we can also think in reverse from a different perspective. Instead of bearing the higher risk and chasing the things that everyone is chasing at the moment, it might be better to pay more attention to the things that people keep complaining about, as you may eventually find a better opportunity.
Many people always focus on the present and fail to see the more distant future, and are anxious about some current events. For example, in this cycle, BTC has risen and fallen from around $15,000 to the current $91,000. In each previous upswing, many people were waiting for a pullback and were determined to get in only if there was a pullback, and in each previous downswing, many people continued to wait and watch, forgetting their previous determination, and ended up watching BTC reach its current level.
(Image source: Talk Li Talk Outside e-book "Blockchain Methodology" Volume 1)
In such matters, we should think and understand the concept of time frame more. Many claim to be long-term investors, but in reality, their so-called long-term investment is only able to hold for a few weeks or at most a few months. If your perspective can only see a range of a few weeks or months, then you are likely to become anxious. In fact, things that appear to be downward in the short term may have higher potential if viewed in a broader space (globally) and a broader time frame. For example, even if BTC drops from $91,000 to $81,000, we cannot deny that it may reach the target of over $100,000 in the future.
Holding tokens that are likely to grow over time is the golden rule for reasonable wealth accumulation in the bull market.
Talk Li Talk Outside has been sharing our own DCA plan and strategy in articles since 2022, and recommending that at least 50% of the position be DCA'd into BTC. Sticking to DCA during the bear market and patiently selling in batches during the bull market is a wealth accumulation rule that everyone can understand, but based on my observations over the years, not many people are actually able to persist in doing so.
Of course, I can understand this, after all, in the first two years when I just entered this circle, I also had the same speculative mentality as most people, and was also tempted by the various market fluctuations.
But this thing also has its pros and cons. With different positions, the angles of thinking may be different. For example, if you ask a person with only a few tens of thousands of dollars in capital to be patient and DCA BTC over a four-year cycle, it may be very difficult for them, as it does not match their expectations of crypto market opportunities. And for those who can do this, they may also face limitations in their thinking and strategies, leading to missed opportunities.
There are some things that I choose to deliberately miss, so I don't envy the so-called eternal profit masters or meme-type wealth players... I take a very calm view of such things. I think many things don't really have a right or wrong, and what's most suitable for yourself may be the right thing.
The crypto market has clearly started to heat up again recently, and many people are asking me to recommend some MemeCoin that can make them rich. But this is something I cannot directly recommend. The only thing I can do is to share some things based on the methodology through Talk Li Talk Outside.
The wallet is your own, especially when you are in an extremely high-risk field. When you open your wallet, what you hope for is for others to stuff it full of money, but in fact, more people just want to steal your principal.
Except for some professional traders, for most ordinary retail investors, if you want to make money in the bull market, you should always focus on your own goals and avoid blindly chasing short-term hot spots, because things that rise quickly can also fall quickly.
Of course, different people have different positions. If your positioning is to be a long-term investor, then try to avoid the noise in the market. If your positioning is to hope to make short-term trading profits, then try to improve your own ability to acquire and organize information, actively explore the market's hype points, and be careful not to confuse hype with actual value.
Hype can lead to rapid price increases, but persistent growth can only come from potential actual value. Many people always like to pursue low-cap projects, but you need to ask yourself first, taking DEX as an example, what advantages do those low-cap DEX projects have compared to the same type of projects that have become unicorns? And this will determine whether you are engaging in speculative trading or value investing.
The key to successful speculative trading is that you need to participate and enter earlier to have a chance of getting greater opportunities, because the latecomers will be the ones to hold the bag. But entering earlier often requires your own knowledge accumulation, understanding ability, and research efforts to discover the potential opportunities within, and you can't just ask others directly to get the answers.
And there's another point, compared to the traditional financial field, the changes in the crypto market are actually very fast, and many so-called historical experiences may not be completely accurate when applied to the present, as each cycle has its own different performance characteristics. While maintaining the basic overall strategy, we also need to learn to be flexible and constantly supplement and improve our knowledge system and theoretical system.
I use Notion to record more than 10,000 words of thoughts or notes at least once a week. In fact, it is also to get closer to this market, understand this market better, and thus improve my own knowledge and theoretical system, and also make myself more patient and focused. At the same time, choosing to output part of the content through the public account platform is also a kind of knowledge loop, I think, only input + output knowledge can form effective positive feedback and accumulation.
In a market that is changing rapidly 24/7, we need to constantly understand the market, analyze the market, and closely monitor the flow of funds. Investing is not a one-time thing, we not only need to make good use of the current bull market, but also should make good use of every cycle, be friends with time, maintain focus, maintain thinking, and maintain patience.
Finally, let's talk about the security issue.
Today I found that many partners are discussing the theft of DEXX, which is said to have involved assets in the hundreds of millions of dollars, and many users have suffered heavy losses. One explanation is that the project party is embezzling (it is said that the DEXX project party is in Hangzhou, China), and another explanation is that the server where DEXX stores user private keys was hacked. Some even found that DEXX's private keys are transmitted in plain text, as shown in the following figure.
I have also used this tool a few times before, and have authorized a small wallet to query data. To be honest, the data listed is quite comprehensive, and if you don't consider the transaction function, it is a good on-chain data query tool. Many KOLs have also frequently promoted this tool before, and it's a pity that the theft incident has happened now. For those who are still using the tool APP, I suggest you uninstall it as soon as possible. If you have ever saved the seed phrase or private key on your phone (or you have copied and pasted the seed phrase), I suggest you check your wallet as soon as possible, and transfer the assets that can be transferred to a new wallet for safety.
For such on-chain tools, my daily habit is to view them through the web version, and I basically won't download the APP of such tools, and I will only authorize small wallets or test wallets for authorization. The small wallet will mainly store a small amount of assets (generally from tens to thousands of dollars) for daily interaction experience such as Gas fees, and the test wallet is basically empty, mainly for accessing and authorizing some on-chain tool websites for data query. In addition, I currently mainly use 3 iPhones, two of which are dedicated "cold wallets", and one is a crypto-specific one, but I only install a few essential applications such as Binance, OKX, and Trust.
The above are my personal usage habits, for your reference. In this field, there are two main ways to lose money, one is that you bought some Altcoin and lost money, and the other is that your money was lost (stolen or scammed). If you lose money by buying coins, you can still scold the project party, but if it's because your wallet was stolen or scammed, you can only reflect on it silently.
In fact, the previous articles have already sorted out a lot of topics about security, and in the "Talk Li Talk Outside Toolbox", we have also reminded a lot of attention points about security. As shown in the following figure.
(Source: https://senlonlee.notion.site/39ad9a606d1640319ba98f05c4f9c69f)
In short, we must always manage our own risks and emotions, and find the most suitable way to accumulate wealth. We are fortunate to be able to enter this field, which is lucky for many people. The road ahead for this industry is still long, and there are many new opportunities waiting for us to explore, don't let yourself get lost in the darkness before the dawn.
Today is Saturday, let's just chat about this much. Have a nice weekend everyone.
Note: The above content is only a personal perspective and analysis, and is only for learning and exchange, and does not constitute any investment advice. Any projects or websites mentioned in the article are not directly related to Talk Li Talk Outside (Talk Li Talk Outside does not accept any advertising from project parties). Please evaluate the security of the corresponding projects or websites yourself. Investment always has risks, don't get into what you don't understand, and don't play what you can't afford to lose.
