As a cryptocurrency trader, I also want to be a friend of time.

Zhang Yue asked for help in the WeChat group. In the past period of time, the price of Dogecoin has risen sharply, setting a record of more than 400% increase in seven days. The amazing returns have once again shaken Zhang Yue, who was once "hurt" by the fund and claimed to keep regular deposits in the future. Now, although he knows nothing about the cryptocurrency circle, Zhang Yue is still attracted by the tempting wealth figures and wants to join this wave of wealth creation.

"I'll just buy one for 1,000 yuan. I won't feel bad if I lose money. What if I'm lucky enough to make tens of thousands?"

There are many people who have similar ideas as Zhang Yue.

Recently, as the prices of cryptocurrencies represented by Bitcoin have repeatedly hit new highs, the market's enthusiasm for cryptocurrency speculation has continued to rise, and this sentiment is directly reflected in the numbers.

According to documents submitted by cryptocurrency trading platform Coinbase to the SEC before its listing, the total number of certified users of Coinbase in 2019 and 2020 was 32 million and 43 million respectively. In the first quarter of 2021, the number of certified users of Coinbase increased by 13 million, surpassing the growth of the whole year last year in three months.

Recently, ChinaVenture talked with several “cryptocurrency traders” who joined the cryptocurrency circle at different times. Among them, there are cryptocurrency newbies who could not help but enter the market because of the financial freedom of those around them; there are also radical post-90s who are being “taught a lesson” by the market; and there are also “senior old investors” who have experienced several cycles and have a new understanding of the cryptocurrency circle.

Perhaps after everyone starts investing in funds, the era of everyone investing in cryptocurrencies is not far away from us.

"100,000 yuan, I'm ambushing a dream in the cryptocurrency world"

Chen Chong Internet Entrepreneur

On April 9, Chen Chong downloaded the Huobi APP on his mobile phone and recharged 100,000 RMB into it, announcing his official entry into the cryptocurrency circle.

This was not his first time buying coins. "I bought them in early 2014. Many people around me were buying coins at the time. Dogecoin had just been released and was free, so I bought a lot. But because I didn't understand it at all, I thought it was a scam when the price dropped a little, and I withdrew soon after."

Last year, the cryptocurrency market ushered in a strong bull market. Many cryptocurrencies represented by Bitcoin, Ripple, and Dogecoin have shown explosive growth in the short term. Among them, the price of Bitcoin once exceeded 64,000 US dollars per coin, an increase of more than 780% from the end of 2019 and more than 100% from the end of 2020. Dogecoin, which was "selected" by Musk to be taken into space, has risen 405 times in one year.

The price continues to hit new highs, which means that those who bought these coins at low prices have now made a fortune.

Chen Chong told ChinaVenture: "In the past few years, the bitcoin market was not good, and everyone kept a low profile. But since last year, I found that those who started playing with bitcoin and persisted have basically made 20 to 30 times more money, and some have become financially independent, while those of us who are dedicated to running a company are still struggling."

This time, Chen Chong decided to start from scratch with a learning mentality. Chen Chong's plan was to divide the 100,000 yuan into several parts, one part for mining, one part for buying bnb (Binance Coin) for a more reliable long-term investment, and the last part for buying some cheap new coins during the bull market, waiting for a "dream" in the future, and then use the money to buy mainstream coins for long-term investment after figuring it out.

“I will probably pay tuition this time, but as long as I don’t use leverage or contract gambling, there shouldn’t be any problems.” However, Chen Chong still told ChinaVenture, “In fact, there is still a big information gap in playing with cryptocurrencies. The circle is very important, but overall, long-term mindless holding is fine, which is definitely better than fund stocks.”

Fortunately, on the second day after entering the cryptocurrency circle, Chen Chong made a huge profit of 27% on the coins he bought.

“The first time I got liquidated, I smoked three cigarettes before I calmed down.”

Guo Yang, e-commerce practitioner

The reason why the cryptocurrency world is so attractive is that its volatility is large enough. A friend who trades in cryptocurrencies joked: "In the cryptocurrency world, if the increase is not doubled, you are embarrassed to say it." But what he didn't say is that in the cryptocurrency world, the drop may make you doubt your life in a minute.

On April 18, Bitcoin, which had continued to set new historical levels, suddenly showed a downward trend, falling from more than $60,000 at the opening to below $52,000. According to data from Bitcoin Home, more than 470,000 people had their positions liquidated within 24 hours of that day, with a liquidation amount of $6.164 billion. The largest single liquidation order was worth $46.94 million.

Guo Yang told ChinaVenture: "In fact, in the cryptocurrency circle, this kind of thing happens all the time and has become commonplace."

Guo Yang is a typical post-90s generation who likes adventure and excitement. He has been buying contracts since he entered the cryptocurrency circle in 2019. Compared with spot trading, contracts are more exciting. If the price opens 75 times and increases by 1%, it is equivalent to an increase of 75%. The daily increase of several times can stimulate your adrenaline all the time.

Guo Yang has also developed a "steady and steady" way of playing: "I open a 75-fold position and use 1/10 of the position. At this position, it won't explode even if it drops 20%."

However, this gameplay is obviously not applicable now.

On January 11, 2021, Guo Yang had his first liquidation in his "coin life". "The price kept falling that day, and I just watched, waiting to close the position manually. But the pin (the price of a coin suddenly soared or plummeted a lot, showing the shape of a needle in the price trend) was faster than my hand speed, and I failed to close the position, and watched 30,000 yuan go to zero." Guo Yang said, "I smoked three cigarettes before I calmed down."

In order to quickly recoup his investment, Guo Yang chose a more aggressive approach and used the remaining 2,000 yuan in his account to open a 100x contract to go long on Bitcoin. "If I'm lucky, I can make back my losses within a week." Sure enough, while he was talking, his 2,000 yuan had turned into 4,000 yuan.

In the past three months, Guo Yang has experienced three large and small liquidations, and his losses have increased from 30,000 to 60,000. Compared with the shock of the first time, his mentality has calmed down a lot.

On April 16, Dogecoin rose sharply to a high of $0.47 per coin, up more than 200% in 24 hours. Guo Yang seized this opportunity and made 5,000 yuan with 400 yuan, and he still has 55,000 yuan to get his money back.

It’s all about the heartbeat. This sentence is a true portrayal for cryptocurrency players like Guo Yang.

“Use money that can be reset to zero to make friends with time”

Shen Peng, Medical Practitioner

When asked if she regretted missing out on an opportunity to be financially free, Chen Chong said, "No regrets, the key is the mentality. I didn't understand it before, so my mentality would collapse when the market fell a little. Only those who can hold on can make money."

Shen Peng shares the same idea as Chen Chong.

Compared with Chen Chong and Guo Yang, Shen Peng calls himself an "old leek" in the circle, and a more rational one.

"I've heard of Bitcoin before, but I never got involved because the wallet wasn't that convenient. In 2017, Li Xiaolai's Yunbi Exchange became popular, which greatly facilitated the entry of players, so I followed suit." Shen Peng recalled to ChinaVenture, "At that time, cryptocurrency trading was still a game for a few people. It was the big names in the cryptocurrency circle who were recruiting people. If someone entered the market, there would be a market. If the market rose, the assets of old players would double, and then different leeks would fall under the scythe of different big names. That's why everyone said that cryptocurrency trading was like a pyramid scheme at that time."

When Shen Peng first entered the market, he bought Bitcoin, Ethereum, and a few altcoins, but later all of those altcoins went back to zero. "To put it bluntly, altcoins are just old investors exchanging air for new investors' fiat currencies."

From 2017 to the present, Bitcoin has experienced two major ups and downs. One occurred from 2017 to early 2018. In half a year, the price of Bitcoin rose from a few thousand US dollars to 20,000 US dollars, and then fell to 5,000 US dollars. The second time was the bull market we are experiencing now.

From the initial big shots cutting leeks to the two ups and downs later, I witnessed many people around me either becoming rich overnight or leaving the market in disgrace.

Shen Peng sighed: "Crypto trading is more like a test of human nature. If you blindly follow the trend and increase your position when the price soars, or sell your position at a loss when the price plummets, or gamble with contracts, you will end up becoming the leeks under the sickle."

When asked how he could keep a calm mind amidst the ups and downs, Shen Peng said that, to some extent, cryptocurrency trading was more like a social experiment for him.

"There are not many ways to play financial games, and there are always people who try every one of them, absorbing many other elements of social progress in the process of exploration. Digital currency is digital assets. In the digital world, digital assets are inevitable, but how to operate them is still being explored, so I say this is a social experiment. Since it is an experiment, the important thing is to participate. If you gain something, it is purely accidental and just luck." Shen Peng suggested: "If you have spare money, it is good to take it out to participate in the experiment, 'use money that can return to zero and make friends with time.' If you don't have it, you can participate and watch, but don't use your old capital to fantasize about getting rich."

Final Thoughts

During the conversations with several interviewees, they all mentioned the same point: "Attitude determines everything, be friends with time."

We cannot judge the investment value of a coin, a company, or a fund through short-term stock price fluctuations. The stock price can only tell you at what price you can buy your favorite target and whether it is possible to absorb high-quality chips at a lower price. Apart from that, it has no meaning.

As Zhang Lei mentioned in "Value": When you are very clear about what you believe in, everything else is a distraction. Beliefs are sometimes more important than situations.

(At the request of the interviewees, all names in this article are pseudonyms)