Crypto's Rules of Adulthood: 18 Counterintuitive Survival Revelations

Written by: Route 2 FI

Compiled by: Luffy, Foresight News

Amid the ups and downs of the cryptocurrency market, how can individual investors avoid becoming "market prey"?

Crypto KOLRoute 2 FI combined its own experience and extracted 18 practical lessons, revealing the cruel nature and survival logic of the crypto market.

1. Don’t assume that others will think about you.

Even if you feel like you are part of a large community on crypto Twitter, you are always fighting alone in essence. This is a PvP game. In the market, everyone is self-interested.

2. Information asymmetry on Twitter is extremely high

Only by understanding the position of KOLs in the profit chain can you make reasonable judgments for your investment. If you follow the right people, you can obtain a lot of valuable information (alpha); if you blindly follow the wrong people, you may lose everything.

3. Believe in yourself

When the market is going up, you ask people what they are buying and the response you get is, "Idiot, don't buy when the market is going up." When the market is going down, you ask people what they are buying and the response you get is, "It's over, anyone buying now is a fool."

4. Stay away from the whispering gallery effect

Use Twitter to get feedback on your own opinions, not to seek approval. For example, if you are considering buying HYPE, also get the opinions of those who do not recommend it. Maybe you are overlooking something.

5. Less debate, more research

Instead of arguing with anonymous people online, spend time reading white papers, trying out on-chain applications, asking questions on Telegram/discord, or recording your thoughts. Thinking on paper is most effective. Write down your investment logic before buying.

6. Don’t let others make money faster than you and let your belief in holding a position waver

Your long-term holdings should be measured in years, not weeks or days. But if your investment logic changes, you should be brave enough to sell. Never "stay together" with your positions.

7. About transactions

If you get super excited about a position, sell it. If the price goes parabolic, sell it. Nothing goes up forever, and you have to take profits if you want to survive in the long run.

8. If you can’t explain the source of income of your DeFi platform in two sentences, then you are the source of income

9. In crypto, narrative is everything

The story we tell together is powerful. At one point, the combined market value of Dogecoin and SHIB was close to $100 billion. This reminds me of a saying: "Do you want to make money, or do you want to prove that you are right?"

10. A missed opportunity is not an opportunity

If you see a new crypto project and think ‘wow, what a great idea’ but hold off on investing for a few weeks, then when it suddenly spikes in price, don’t throw your money in. Your opportunity to invest was a few weeks ago, and now it’s too late, and you may be buying at a local high.

11. Emotions are temporary

When you start making money, you feel a great euphoria, but the side effect is that you want to replicate that feeling over and over again. Overtrading and frequent position switching may occur just to relive that euphoria.

12. Every asset will have its own highlight moment in the bull market

I know you want to believe that all assets will rise together, but more often than not, different sectors rotate. Pay attention to emerging narratives and plan ahead.

13. Mistakes made in your 20s are better than mistakes made in your 40s, and $1,000 mistakes are better than $100,000 mistakes.

The first time I tried leverage trading, I lost thousands of dollars in a matter of minutes. But I learned from it and kept going.

14. Why most people can’t make money in the crypto market

• YouTuber/crypto Twitter influencer starts discussing a project/making a video (price increases)

• The token entered the Coingecko top 100

• KOL/ VC/ early investors etc. start selling on the way up

• After the token becomes famous, ordinary retail investors want to buy it

• Retail investors buy = price goes up a little more

• KOL/VC/ Early Investors Cleared Out

• The token plummets (usually while you sleep, right?) — you cut your losses

15. Give yourself time

We all want to get rich quick, but slow and steady wins the race. Remember, Warren Buffett earned $81.5 billion of his $84.5 billion net worth after he turned 65.

16. What you want is not retirement, but freedom

Retirement is like a Caribbean beach vacation, you get bored after a week. Freedom is waking up and doing what you want, creating with interesting people, and spending lots of time with family and friends.

17. Don’t go all in on the crypto industry

If you really want to quit your secure 9-to-5 job and go full-time into crypto, ask yourself if you’re willing to be online 10-16 hours a day, 7 days a week for several years. Even then, it may not work.

18. When you finally succeed in the crypto market, you’ll find that this is not what you originally wanted

You have money, but you are still the same person. Make sure your life goals are not just about making money, otherwise it is easy to fall into depression. But that's another story.

The article comes from the Internet:Crypto's Rules of Adulthood: 18 Counterintuitive Survival Revelations