In the blink of an eye, it's been 3 years since I entered the circle, going through the bear market to the bull market and back to the bear market.
Turns out the bear market lasted 4 years, but there were only one or two months of bull market.
Have you ever had this feeling:
Just entered the crypto world, everything looks like an opportunity, and everyone seems like a big shot. Still scrolling Twitter at 3 AM, afraid of missing a wealth password. Only 0.1 ETH in the wallet, but you've already planned how to spend the million you will make.
I have experienced it.
Later, after I lost money and understood, I realized: the biggest pit in this circle is not that your skills are lacking, but that you haven't figured out what you're doing.
Today I'm not going to teach you how to get rich overnight, but let's talk about the three pitfalls that newcomers are most likely to fall into, and how to avoid them.
1. Information cocoon: What you see is a script designed by others.
You think you are actively learning, but you are actually being fed.
When I first entered the circle, I followed more than thirty KOLs, scrolled through Twitter, watched groups, and chased news. Later, I realized a disturbing fact: those who predict accurately never share screenshots. And those who share profitable trades have fan groups charging 1888 U.
Even more absurd is 'smart money follows'. You think you've discovered a treasure address, but it's actually bait that someone has nurtured for three years. You see him buy 10,000 U but don't see that behind him, 10 addresses sold for 30,000 U.
Pitfall advice:
Unfollow everyone who 'only shares profits but not logic'.
Any paid group or signal service is presumed to be a scam unless you can prove otherwise.
On-chain data is a tool, not a belief. Smart money can also lose money; don't deify any address.
2. Overtrading: Getting itchy fingers is the primary productivity of losing money.
Newcomers have a common disease: they must do something every day to feel secure.
Today I see this L2 is about to issue tokens; interact with it; tomorrow I see that new protocol has points; deposit some money; the day after tomorrow I see the shitcoin soaring; afraid to miss out, I hurry to get in.
After a week, I spent several thousand on gas fees, accumulated a bunch of points, and the project team hasn't distributed tokens yet, while the shitcoin has already gone to zero. Looking back, Bitcoin has risen by 20%, and I didn't hold anything.
Pitfall advice:
Put 90% of your position in BTC/ETH, and use the remaining 10% to 'pay tuition'.
Allow yourself to make a 'chase the trend' operation only once a month; keep your hands to yourself at other times.
When you want to trade, ask yourself: If this transaction is locked for a year, would I still want to do it?
3. Attribution bias: Blame the project for losing money, credit yourself for making money.
This may be the most hidden pitfall.
Bought a new coin, it dropped; you curse the project team as a scammer. It rose; you think your judgment is sharp.
In truth, in a bull market, even the direction in which you take a dump can rise, but in a bear market, even Buffett would be trapped.
I have seen the most ridiculous group member, who made 2 million in 2021 by randomly trading new coins, then thought he was the chosen one and quit his job to trade cryptocurrencies full-time. He lost everything in 2022 and still owes 300,000.
He's not stupid; he just mistook luck for skill.
Pitfall advice:
Write an 'Attribution Review' once a year: How much of this year's earnings came from the market, and how much is from your own operations.
If you can't beat BTC, don't mess around, just buy BTC and relax.
Remember: In a bull market, less than 5% of people actually cash out; most just experience roller coasters.
Suggestions for newcomers to the circle.
If you just entered, and don't want to lose too much while also not wanting to miss opportunities, follow these steps:
Step 1: Open an account, but don't deposit money
First, register with a centralized exchange (Binance or OKX) and complete KYC.
Don't rush to deposit; first try the buying and selling process in a demo account or with a small amount.
Step 2: Buy 0.01 Bitcoin
Buy genuinely and transfer to your own wallet (recommended MetaMask or OKX Web3).
Experience the whole process of withdrawing coins, gas fees, and on-chain confirmations.
This step will dissuade 30% of people—good, those who remain have a chance.
Step 3: Find a track that interests you and follow it closely for three months.
Don't look at everything; choose a direction: for example, L2, DeFi, Meme, AI.
Go through the white papers, Twitter, and communities of the leading projects in that track.
Don't invest money; invest time first. After three months, you'll naturally know which projects are doing work and which are just making promises.
Step 4: Set a 'tuition fee limit' for yourself.
For example, 500 U, or 10,000 RMB
You are not allowed to increase your position before this money is lost.
You may find that before you even lose everything, you've already learned to respect the market.
In the end, this circle is not a magical world.
It just amplifies human nature a hundredfold—greed, fear, conformity, and luck can all be exchanged for real lessons here.
Don't think about retiring in three months; first survive the first cycle.
Only those who survive have the right to talk about making money.#CZ币安广场AMA @币安Binance华语
