Recently, I discussed the possibility of ordinary investors achieving success in the Crypto Assets market. Through simple mathematical analysis, we can draw some interesting conclusions.



Since 2016, Bitcoin has gone through about four investment cycles. The increase in each cycle is usually between 3 to 6 times. Considering that it is difficult to accurately grasp the bottom and top in actual operations, we can conservatively estimate the return of each cycle to be 4 times.

According to this calculation method, if an investor invested 5000 yuan in 2016, it could theoretically grow to about 1.28 million yuan after four cycles. While this is not considered huge wealth in the Crypto Assets market, it is already a decent starting capital. If patience is maintained and one or two more cycles are experienced, it is expected to reach a scale of around 20 million.

This simple deduction reveals an important fact: in Crypto Assets investment, the amount of initial capital is not the only factor determining success. So, what is truly important?

When analyzing problems, we can continually ask: what is the most important in this field? Compared to this, what else is more critical? Through this method, we can identify the true core elements.

In Crypto Assets investment, factors more important than capital include:

1. Belief in Crypto Assets: Do you believe that cryptocurrencies like Bitcoin are not Ponzi schemes? If so, what is your reasoning? Do you understand and agree with their core value propositions?

2. Cognitive Level: In the Crypto Assets market, having the correct understanding is more important than simply investing funds. If you do not recognize the value of Bitcoin and believe it is just a scam, then even if you invest, it will be difficult to hold on during market fluctuations.

3. Patience and Perseverance: Can you remain calm amidst market fluctuations and hold onto the assets you believe are valuable in the long run?

4. Risk Management Ability: Understand your own risk tolerance and allocate your investment portfolio appropriately.

5. A continuous learning attitude: The Crypto Assets market is evolving rapidly, and it is crucial to maintain the habit of learning and updating knowledge.

Overall, in Crypto Assets investment, the correct understanding, firm belief, good psychological quality, and the ability to continue learning are often more important than the amount of initial capital. These factors will determine whether an investor can survive and succeed in this highly volatile market.
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rugpull_ptsdvip
· 08-09 19:47
Stop dreaming, more than half of the retail investors have already exited.
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SandwichTradervip
· 08-09 19:45
It's all the self-comfort of suckers.
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probably_nothing_anonvip
· 08-09 19:40
suckers cried after watching it.
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HypotheticalLiquidatorvip
· 08-09 19:33
The mentality of a Bear Market is the primary liquidation factor, and the Volatility has breached the healthy threshold.
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