Author: Route 2 FI Source: theblackswans Translated by: Shan Oba, Jinse Finance
1. Don't think anyone is truly looking out for your interests.
Even if you feel like part of a "big community" on crypto Twitter, you're actually alone.
This is a PvP (player versus player) game. In the market, everyone only thinks about themselves.
2. Information asymmetry on Twitter is severe.
To make good investment decisions, you need to understand which KOLs are upstream in the information chain.
Following the right people can give you a lot of "alpha". Blindly following the wrong people might cause you to lose everything.
3. Trust yourself:
When the market rises, and you ask others what they're buying:
"You're buying when the market is up? Are you crazy?"
When the market falls, and you ask others what they're buying:
"It's all over. Buying now is truly stupid."
4. Stay away from echo chambers.
Use Twitter as a tool to test views, not to seek confirmation bias.
For example: If you're considering buying HYPE, look at what those who don't recommend it are saying.
You might have overlooked something.
5. Instead of arguing with anonymous netizens, spend time reading whitepapers, using on-chain applications, asking questions on Telegram/Discord, and recording your thoughts.
You think most clearly on paper.
Before investing, write down your investment logic.
6. Don't waver on your long-term positions just because others are making money faster.
Your long-term positions are measured in "years", not "days" or "weeks".
Of course, if your investment logic changes, be willing to sell.
Don't fall in love with your tokens.
7. About trading:
If you're excited about a position, sell it.
If it has surged, sell.
Nothing rises forever.
To survive in the market, you must understand taking profits.
8. If you can't explain a DeFi platform's revenue source in two sentences, the source of revenue is yourself.
9. In the crypto market, narrative is everything.
The stories we tell together have immense power.
$DOGE and $SHIB's market cap once approached $100 billion. It reminds me of that saying: "Do you want to make money, or do you want to prove you're right?"
10. If you see a new project and think "it's really good", but haven't bought and it suddenly surges weeks later, don't jump in.
Your real buying opportunity was weeks ago. Now you're too late and likely to buy at a local top.
11. Emotions are temporary. You'll feel extremely excited when you start making money.
But the problem is you'll want to keep recreating that feeling.
So you start over-trading, frequently rebalancing, just to experience that thrill again.
12. Understand: In a bull market, each asset will have its moment (more or less).
You might hope everything takes off simultaneously, but reality is often that certain sectors periodically outperform.
Pay attention to emerging narratives and prepare in advance.
13. Better to make mistakes in your 20s than in your 40s.
A $1,000 mistake is better than a $100,000 mistake.
I lost thousands of dollars in a minute on my first leveraged contract.
But I learned the lesson and moved forward.
14. Why can't most people make money?
1) YouTuber/KOL recommends a project (price rises)
2) Token enters Coingecko top 100
3) KOL/VC/Early investors gradually sell
4) After token "goes viral", ordinary people start paying attention
5) Retail investors buy in -> Price rises a bit more
6) KOL/VC/Early investors completely cash out
7) Token crashes (usually while you're sleeping) -> You sell at a loss
15. Give yourself time.
Everyone wants to get rich overnight.
But slow and steady wins.
Don't forget: Of Warren Buffett's $84.5 billion net worth, $81.5 billion was earned after he was 65 - over 96%.
16. What you want is not retirement, but freedom.
Retirement is like a Caribbean vacation - fun at first, but you'll get bored if it lasts too long.
True freedom is waking up every day doing what you want, building with interesting people, and spending time with family and friends.
17. If you really want to quit your stable 9-to-5 and go full-time in crypto, first ask yourself if you can be online 10-16 hours a day, 7 days a week for several consecutive years.
Even then, success is not guaranteed.
18. When you finally succeed in the crypto market, you might discover it's not what you truly wanted.
You have money, but you're still the same you.
Ensure your life goals are not just "having money".
Otherwise, you might easily fall into depression after making money.
But that's another story.
