The class representative is here. Listen to Master Bao Er, a lifetime should only hold one Bitcoin, but Master Er, I just love playing memes, what should I do?
Core Understanding of the Cryptocurrency Circle (Class Representative Version)
1. Core Logic: The cryptocurrency circle is a cognitive monetization market, where cognitive differences set the upper limit and information gaps set the lower limit. You can't earn money outside of your understanding, and returns that you don’t comprehend are all risks.
2. Essence of Trading: What is traded is human nature itself. When emotions are heightened (excitement/panic), all cognition fails, and the root of liquidation is human nature, not technology.
3. Cryptocurrency Operations: Altcoins should be decisively taken profit, while Bitcoin should be firmly held; if you don’t understand the buying logic, you will never sell, no plan means no trading.
4. Bull and Bear Patterns: In a bull market, emotions and storytelling are played, testing restraint (selling amidst the crowd); in a bear market, earnings come from understanding and watching the real market, testing patience (buying when no one is paying attention); bear markets filter out speculators, while bull markets amplify greed, cycles repeat, surviving the bear market is more important than anything else.
5. Key Points to Avoid Pits: Don’t blindly trust WeChat groups/insider information (often it’s others unloading), there are no teachers in the cryptocurrency circle, only survivors; read the white paper in reverse to understand unlock times, airdrops are customer acquisition, and roadmaps often promise too much, Tokens are not equity, don’t be swayed by narratives.
6. Underlying Truth: Only Bitcoin (PoW) is truly decentralized, others are just hype; community consensus = price consensus, liquidity is key, innovations without real demand are bubbles; a founder locking their holdings does not mean they won’t cash out, VCs are not there to share your faith.
7. Trading Principles: Risk control sets the lower limit, position sizes should let you sleep well, not losing big money is a prerequisite for long-term profitability; a common issue for beginners is not being able to go to cash, trading is about managing uncertainty rather than predicting the future, frequent trading is a sign of cognitive insecurity.
8. Core Mindset: Accept the identity of an ordinary person, abandon personal heroism, don’t clash hard against the cycles; always maintain a beginner’s mindset, the most dangerous thing is to think that you “understand everything”; true freedom is not being swayed by market conditions, true faith is to keep moving forward even after seeing zero.
9. Key Operations: Clear contracts, control positions, increase holdings step by step, stop-loss is to survive; only those who can exit completely are the real winners, holding Bitcoin long-term is enough.
