#山寨季来了？# #pi#

What kind of game is trading in the cryptocurrency world?
If you treat cryptocurrency trading as a game, then it is definitely a high-risk, high-reward gamble.
So, what kind of game is this? Let's break it down from several aspects:
1. Rule Setting: High Volatility, Unregulated, Strong Speculation
The core characteristics of the cryptocurrency circle are:
Extreme volatility: A daily fluctuation of 20% is normal, and contract leverage can make one rich in a day, but it can also lead to instant zero.
2. Character Setting: Who is the player, and who is the prey?
In the game of the crypto world, the winning rates of different players vary greatly. They can be roughly divided into the following categories:
(1) Prey: 95% of retail investors
They heard stories of getting rich in the crypto world, entered the market with fantasies, and ended up becoming the "liquidity" of the market.
Likes to chase price increases and sell during declines, FOMO (fear of missing out) when prices rise, cutting losses when prices fall, emotional trading.
Seeing others become wealthy and going all in, only to be harvested by the house.
Survival Difficulty: Extremely High (Most will be eliminated by the market)
(2) Predators: Market Makers, Whales, and Dealers
They control market sentiment by using tactics such as pump and dump, fake breakouts, and inducing longs and shorts to harvest retail investors.
Essentially, the money lost by retail investors is the profit flowing into their pockets.
Survival difficulty: Low (as long as the market exists, they will always make money)
(3) Gambler-type traders: high leverage players
They want to use a small amount of capital to seek huge profits, often using 10x or 50x leverage.
If you catch the rhythm correctly in the short term, it may double quickly or even increase tenfold, but most will eventually go to zero.
Survival Difficulty: Extremely High (The money earned by luck will eventually be lost by skill.)
(4) Rational Investors: Long-termists
They have their own trading strategies, not chasing highs and selling lows, but rather positioning based on market cycles.
They hold mainstream assets such as Bitcoin and Ethereum, knowing that the cryptocurrency market is growing in the long term.
Survival difficulty: Medium (requires strong patience and cognition)
3. Victory Conditions: How can you survive in the game?
To survive and make money in the cryptocurrency world, you need to follow these survival rules:
(1) Understand your win rate, do not open leverage recklessly.
(2) Don't let market sentiment control you.
In a bull market: The market is full of greed, retail investors FOMO in, you need to stay calm and reduce your holdings at highs.
In a bear market: the market is extremely fearful, and retail investors are selling off and leaving. You need to have the patience to buy low.
(3) Do not be the cannon fodder for short-term trading.
80% of short-term traders lose money because the cryptocurrency market is highly volatile, and ordinary people simply do not have the ability to compete with market makers.
(4) Understand the periodicity and go with the trend.
Bull Market: Suitable for holding positions, and even consider adding positions in batches.
Bear market: suitable for dollar-cost averaging and lurking, rather than panic selling.
Sideways consolidation: Don't make random moves, patiently wait for a big market.
(5) Don't be brainwashed by the "get rich quick myth".
Most people enter the cryptocurrency space because they see others becoming rich overnight, but in reality, only a very small number get rich, while the vast majority face liquidation.
4. The ultimate conclusion: The cryptocurrency world is a knockout competition, and only a few can win.
If you can understand the rules of the market, strictly adhere to discipline, and have patience, you may have a chance to become a winner.
In the cryptocurrency world, cognition determines life and death, discipline determines win and loss, and patience determines wealth.