Source: Talk Outside
Yesterday (Eastern Time, March 7), the first Altcoin summit was held at the White House, becoming a new milestone event in the Altcoin industry, as it was the first top-level summit held by the US government specifically to discuss the future of Altcoins and their regulation, aiming to strengthen the US's leadership in the digital Altcoin economy, and also signifying that the US government has officially recognized Altcoins as part of the US financial system.
Including some of the information revealed at the conference, we also need to think about and pay attention to, such as:
- Regarding stablecoins
The US plans to introduce a federal law regulating stablecoins by August 2025, to ensure the transparency and stability of stablecoins like USDC (and to prevent the use of competing stablecoins pegged to foreign currencies), consolidating the dominance of the US dollar as the global reserve currency.
- Supporting innovation
The US government has promised to relax regulations on the Altcoin market to support innovation, and will also formulate some transparent policies through the newly established Digital Assets Working Group.
- Regarding Altcoins
In the existing strategic reserve plan, the special status of Bitcoin will be distinguished from other Altcoins, and the government may consider setting up a separate fund for other Altcoins (Altcoins other than Bitcoin), but the specific details are not yet clear. Our intuitive understanding is that at the current stage, the US government is still uncertain about Altcoins such as ETH, XRP and SOL, and there is no clear regulation yet, and we need to continue to wait patiently for further policy announcements.
Although the White House Altcoin summit has laid a new foundation for the future development of Altcoins, the Altcoin market is still facing a continuous decline in the prices of Bitcoin and Altcoins, and the reasons for this problem have also been mentioned in our previous articles. Currently, the market sentiment is generally depressed, and the short-term positive news cannot meet the expectations of a market rally, even the White House summit can only be considered as "negative news".
People had hoped that the US government would invest funds and massively purchase Bitcoin, but it did not happen; people had hoped for tax incentives for Altcoins, but it did not happen... The greater the hopes before the summit, the greater the disappointment afterwards, so the market continued to see a downward trend, and the risk of short-term correction also continued to increase.
The approval of the ETF last year represented the formal entry of large institutions, and this year's strategic reserve represents the formal entry of the national team, and the Altcoin industry seems to be developing in a good direction, but at the same time, the opportunities for ordinary people to get rich are indeed becoming fewer and more difficult. While looking to the future, it's better to cherish the present.
Although it looks difficult now, and there are various uncertainties in the macroeconomic factors, the Fed does not seem to have the willingness to cut interest rates urgently, and Trump seems to be continuing to put pressure on Powell, the combination of various uncertainties has not only led to the violent fluctuations in the Altcoin market, but the US stock market has not been doing well either. In this case, for most ordinary people, it may be better to patiently wait for new opportunities than to make random trades.
For example, for some new PvP games, if you have the time and energy and want to participate, you can just play around casually, but don't expect to get rich overnight (or turn your fortunes around overnight) anymore. Yesterday, I found that some partners were discussing the new MemeCoin Cocoro (named after the owner of the Doge meme KABOSU's new dog), which is said to have the support of the Base official, but judging from the trend after the opening, it seems that most of the partners are not doing well either. As shown in the figure below.
In the midst of widespread pessimism, the market has once again entered a rather cruel stage, and more and more people are starting to lose patience and more capital. A few days ago, a partner left me a message saying that he is currently fully invested in Altcoins (80% ETH and 20% other Altcoins), holding without moving, and his position has shrunk from the highest 15 million to the current 3 million.
After a brief exchange, I learned that this partner actually has a relatively low cost basis for his ETH holdings, and even with his position shrinking to 3 million, he still has profits. In this case, my personal view is that whether it's because you didn't set a reasonable phased profit-taking target initially, or because you didn't strictly execute your own trading records, the past can only become historical experience, not something to keep trying to go back to. Now it's better to forget about the 15 million and start planning new goals, otherwise this kind of situation may happen again and again.
In fact, profit drawdowns or principal losses are something many people will experience, including myself. The difference is that some people choose to let go (accept the loss), while others can never let go (willing to gamble but unwilling to accept the loss). In previous articles of Talk Outside, we have mentioned more than once that this market cannot make everyone make money, and losing money is the ultimate fate of most people, especially in what appears to be a bull market, which often leads many people to lose everything.
So, how can we maintain a positive mindset when facing such situations?
1. Give up the idea of "I could have..."
For example, I could have made 10 times the money, I could have not bought that on-chain meme, I could have not listened to someone's advice, I could have...
I remember a partner in the group once said: If you could go back to the past, most people still couldn't change their own destiny.
I think this statement is very reasonable, because investing is a comprehensive practice, but most people are often just controlled by their emotions.
In our previous articles of Talk Outside, we have always said that the market has cyclicality, and what we need to do is not try to control the market, but to adapt to the market, and at the same time try to maintain emotional stability (don't panic).
For short-term trading, as long as you strictly follow your own position situation and risk preference to do good stop-loss/stop-profit, it will be fine. For long-term trading, as long as it is a target you are bullish on in the long run, just do patient operation according to the risk preference.
2. Give up the idea of "I want to quickly recover my losses"
This is also one of the series of questions I have encountered the most before, and many partners like to leave me messages, hoping that I can give them some specific trading guidance to help them quickly recover their losses.
Of course, I can't help with this kind of thing. First, my personal principle is to only share knowledge, not to give trading guidance (including shill and price calls). Secondly, to be honest, I don't have any trading secrets here that can help people quickly recover their losses. If someone claims to have such secrets, then you need to be careful about your principal, as they are most likely scammers.
Many people (especially newcomers who have just entered this field) often choose to make some revenge trades after suffering losses, but in fact, once you get caught in this vicious cycle, not only will you continue to lose more of your principal, but you may also gradually lose yourself.
I want to quickly recover my losses ≈ I want to lose more.
The market is merciless, the market doesn't care about your (anyone's) losses at all. We've mentioned a sentence in our previous articles: The core logic or gameplay of the market is to make as many people lose money as possible.
Therefore, when you face (admit) temporary failure or setback, the best approach may be to "do nothing" until you re-examine what you are doing.
3. Preserving profits is more important than making more profits
Especially during a bull market, when the market enters a highly speculative phase (when market sentiment is relatively high), your main goal should not be to make more money, but to make preserving existing profits your top priority.
The bull market is an opportunity, but for most people, it is often a beautiful trap.
If you are doing short-term trading, you must keep a clear head, manage risks well, stay focused and strictly follow your own trading discipline. If your investment strategy is long-term, then you don't need to worry about any short-term fluctuations, but rather spend more time doing other things you're interested in, such as going for a run or spending more time with your family.
Money can never be earned enough, don't easily compare yourself with others, but compare with your own yesterday. Being left behind at the starting line is not a loss, and don't envy those who race with you in sports cars, because most of the participants cannot persist to the finish line, in this field, we only need to lead the majority.
For a simple example, if you have $100,000 and gamble it on MemeCoin, you may earn $10 million in a single day, but you may also lose it all in a single day. But if you take the $100,000 and engage in on-chain finance in a reasonable manner, as long as you average a 10% annualized return, then after 10 years, your $100,000 will become $260,000 (compound growth).
And this is just a simple financial management example. If you started on March 2020, consistently investing $1,000 on the 1st of each month to buy Bitcoin, without doing anything else, and continued until March 2025, the total investment would be $60,000, but now you would have about 1.766 Bitcoins, currently worth over $150,000.
4. Reduce information interference
Now there is a huge amount of news, messages and information on the internet, and there are also many so-called experts and teachers, and the information is mixed with truth and falsehood. To be honest, if you follow 1,000 experts/teachers, 99% of them or their views will only increase your own emotional uncertainty, FOMO or panic, and will not really bring you cognitive and logical improvement.
Moreover, more than 90% of the so-called experts or teachers, especially those who often show off their trades and claim to always be able to buy at the lowest point and escape at the highest point, may not actually know much about trading, or may not even be involved in any trading at all, or may be losing just like you, they just don't tell you the truth because you (or the traffic) are their real source of income.
Unless you have the ability to efficiently filter and identify effective information from the massive information, it is better to stay away from those who create anxiety, reduce information interference, spend more time thinking and reviewing, or read some reliable in-depth articles, research or reports, so that you can fundamentally gain better and faster cognitive growth.
5. Always stay optimistic
Yes, losses can make people anxious, and anxiety can make people pessimistic, but life must go on.
For investment, as long as the market is still there, new opportunities will be there. Instead of being stuck in past failures, it is better to re-consider utilizing this time to do some new things within your reach. For example, learn some new trading skills (candlestick knowledge, programming, trading books, etc.), study the patterns of the market (historical cycles, liquidity, on-chain data, etc.), start taking some learning or trading notes, and share and exchange with like-minded people (because the best learning is output rather than just input)...
Let's talk about these for now, the sources of the pictures/data mentioned in the text have been supplemented in the Notion outside the text, and the above content is just my personal perspective and analysis, only for learning record and exchange, and does not constitute any investment advice.
