How far you can go in the crypto market depends on your mindset

I have been in the crypto market for more than two years. At the beginning, I lost money in the crypto market because of my lack of knowledge. Now I am determined to improve my knowledge. Although this process is difficult, it is very fulfilling . I am very grateful to my @土澳大狮兄 @98KDAO @Haze, and all the people who know me and don’t know me along the way. Today’s article is to sort out my thoughts and also record my growth.

The crypto market is still in its wild growth stage. With the start of the bull market in 2021, the industry has exploded. I have personally experienced what "everything changes with each passing day" means, and I have absorbed all kinds of new things and new knowledge like a big sponge. The question also arises: "There are so many industry fields, which direction should I choose?"

Everyone's cognition and ability have boundaries, and their energy has limits. It is unrealistic to be proficient in all areas of the crypto market and be familiar with all tracks. People's cognition, ability, and action are three concentric circular structures. The outermost cognition is the understanding of the entire crypto market and the various knowledge we have learned. The ability radius in the middle is the individual's ability level and what we can actually do; the innermost action radius is our actual ability to act, and what we can do with limited energy.

The crypto market is very complex, because various factors influence each other, and tracks and projects can blend and compete at the same time, which is the open source charm of blockchain. It seems to echo the "yin and yang view" of traditional Chinese culture, which is "opposition and coexistence" in this industry. It is difficult to lead the market by a large margin by abandoning other things and focusing on one thing. Therefore, expand the radius of cognition, and a lot of knowledge only needs to be understood, not necessarily mastered. This cognition can respond to Tao Yuanming's words: Good reading, not seeking to understand too much. This cognition can also be said to be a breadth and focus of knowledge. The more you know, the higher your vision will be, and it will be easier to feel the speed and development margin of this market.

The cognitive radius of coexistence of opposites

This may seem contradictory, but I can only say that it is not contradictory. Because most of us tend to form "only one answer, right or wrong, black or white, right or wrong" when dealing with things, but I prefer "grayscale". Few people know that the middle line of the Tai Chi diagram is "gray". We can also put subjectivity aside and try to accept more viewpoints and ways of thinking. I can flexibly switch between "broad vision" and "deep vision" in the dimension of thought. I can try to modularize my thoughts, like playing a puzzle.

For example: Ethereum is the most mature ecosystem in the crypto market. "Deep vision" can be reflected in a deep enough understanding of the Ethereum ecosystem, a clear understanding of the role and contribution of each track in the ecosystem, and how the tracks integrate and compete with each other; "Broad vision" can be reflected in your in-depth understanding of the Ethereum ecosystem, and use the "time machine" principle to find the wealth code on the Ethereum second-layer network (L2). For example: whether the "DEX, NFT trading market, and derivatives DEX" that are indispensable to the ecosystem have just started on L2. If there are no projects or there are not many projects, then this is an opportunity to capture valuable projects.

Some people say: "A broad vision is not as good as a deep vision. The reason is that it is difficult to go deep into a certain field with a broad vision, but it is easier to become a broad vision with a deep vision. My view is that the two are in a relationship of unity of opposites. A deep vision is also a manifestation of a broad vision, and a broad vision can also feed back to a deep vision."

Steady and increasing capacity radius

When a person has the breadth of cognitive ability, then the ability radius is the precipitation of a person below the cognitive radius, what he can do and what he cannot do.

The most important thing about the radius of competence is which industry you want to position yourself in and what you want to work hard for. Only in this way can you say that this is your ultimate radius of competence, rather than just diverging at random.

After entering this market, I can summarize my experience into the following stages:

My first stage was to learn as much as possible about various fields of the crypto market, which quickly expanded my cognitive boundaries;

Then I entered the second stage, which was when I started to seek what I could do. In this stage, I tried: "learning quantitative analysis", "short-term speculation based on technical analysis", "rushing to the local dog", "making a batch of coinlist accounts to grab the whitelist", "participating in various IDOs", "playing with calculations", "news", "getting a first-level quota through resources", "making content", etc. In the end, I found that I did not stick to most of the practices, had no advantages, did not make money, and even lost money;

At this point I enter the third stage where I start to think: "What is my personality like?", "What is my risk preference?", "What can I do with my current abilities?", "What are my strengths?", "What resources do I have?", "How do I make money?", "How do I avoid losing money?".

So the answer is that I like to understand and study the industry ecology, have a low risk appetite, and my personality affects my investment decisions and tends to make value investments. After realizing the boundaries of my ability, I entered the fourth stage of my experience: narrowing my radius of action. I still remember my first pot of gold: after studying DODO, I learned about the background of the project team, the background of the investment institution, the token economic model, and the cost of private placement. I found that the price after listing was close to the cost of private placement, so I was heavily invested in the first place, and the subsequent performance was that I got a 10-fold return after listing on Binance. This also made me more determined to stick to my investment logic, so I am very grateful to the nobles and big Vs and KOLs who produced in-depth content that I could consult during that time.

Reduce the radius of action

The purpose of learning is to "expand your cognitive radius", and the result of learning is to "reduce your action radius". On the basis of understanding cognition and ability, you need to be cautious when actually implementing it and reduce your action radius.

It can be as small as a person reducing the radius of action and doing one thing to the extreme. The most famous one is Jiro Ono, the sushi god of Japan Street. Throughout his life, he has been making sushi for fifty years and finally became the best in the world. Nowadays, you need to make reservations one month in advance to eat, and you have to finish eating within 30 minutes because you have subsequent appointments. This is a typical example of reducing the radius of action and focusing on doing one thing well.

There are many hidden champions in the cryptocurrency industry, such as the 8848 masters "Monkey Game" and "Mike" who focus on making money, "Blue Fox" who focuses on value investment, and "0xWizard" who focuses on on-chain analysis. Many of my views are surprisingly consistent with "0xWizard". The secret of their success is that smart people work hard, while stupid people take shortcuts. People with great abilities do big things, while people with small abilities do small things well first and do them to the extreme. When you do it to the extreme, you will know how to act and reduce your actions, and finally achieve yourself.

Try to learn about things you don’t know and expand your horizons, but you must know that this expansion is not boundless, but rather matches and fits with your own abilities. Then feed these cognitions back into your ability radius to improve your own ability level. When it comes to real action, details determine success or failure, and the ultimate determines destiny. Only by doing small things well and steadily can we truly say that we understand the algorithm of life and have taken the first step in self-cognition.

What we need to do in the end is to continuously improve our cognitive ability, constantly strengthen various ability levels, and finally focus on action, and finally achieve our own life. There is no shortage of opportunities in the cryptocurrency circle, and it is relatively fair. As long as you make the right efforts, you will gain. This industry is in a period of vigorous development. I believe that as long as you improve your "cognition, ability, and action", you will have the opportunity to follow the industry and reap the trend dividends. I wish everyone can reap the results they want in the cryptocurrency circle. The above content is just my personal shallow cognition. The road ahead is long and we need to continue to learn. I hope we can all set sail in 2022!