Legendary investor Lynch once said: You must understand the stocks you hold. It sounds easy, but few people actually do it. His standard is very strict—can you explain in two minutes to a 12-year-old why you are buying it? If you can't, and you're just buying because you think the price will go up, then don't buy.

He gave an example, saying that some people hold tech stocks they don't understand at all, filled with all kinds of parameters and industry jargon, and as a result, these "junk stocks" never make money. On the contrary, those that bring him stable returns are companies that are easy to understand—for example, everyday consumer brands like Dunkin' Donuts, or affordable chain motels. Simple business models and transparent profit logic are the foundation for long-term profit.

This theory also applies well in the crypto space. Can you really explain the coins you hold now? Do you truly understand their application scenarios and ecosystem development directions, or are you just following the trend after hearing some big V hype it up? If you can only recite a bunch of concepts from technical whitepapers and can't clearly explain what real problems the project solves, then you should be cautious. Blindly holding positions and blindly chasing gains are equally dangerous.