A Simple Survival Guide to Cryptocurrency

I want to cross the desert of cryptocurrency/find my true self/there are still a few good coins around me/this K-line is slipping/that K-line is confusing/suddenly there is anxiety after the plunge/I promised not to cut my hands again/I tremble when I open the software/I still want to invest when I see rising stocks/the long bear market is endless/I can’t tell the joys and sorrows/I can only stop losses and not be cut/what cash-out legends/what takeover and market-smashing demons/only Bitcoin/singing in the dark/the confusion of full-position decline/pain in every corner/walking in the endless long river of bear market/positive and negative lines intertwined/so enchanting and graceful/wasted the years and wasted myself/the market is unpredictable/persistence can make you free and easy/walking out of the darkness can make you free and happy

———《Camel in the Coin Circle》

How can you avoid being attacked when you are in the cryptocurrency world? After all, in the cryptocurrency world, you may encounter "unknown AOE" at any time and then get shot.

As an old investor in the cryptocurrency circle, I have more or less experienced the turmoil and disasters in the cryptocurrency circle. Some even fell into various traps and suffered terribly.

Moreover, it is not easy to climb out of the pit in the cryptocurrency circle. After all, you have invested real money in it. This is not a game. If you fail, you will be defeated. If you want to start over, you need to pay and recharge again... What, no money? The door of the cryptocurrency circle faces south. If you have no money, don't come in.

Today, I will write about some pitfalls in the cryptocurrency world, hoping to give you some inspiration. If I can save the cryptocurrency world from an emergency, then it is a great achievement.

Without further ado, this is listed as the most important!

1. Safety

No matter what, in the cryptocurrency world, security must be put first.

If the appreciation of digital currency is likened to adding zeros one after another after the property, then security is the 1 in front. Without that 1, no matter how many zeros there are, they are completely useless.

The security of the cryptocurrency industry is mainly problematic in two aspects:

Situation 1: I bought coins on a junk exchange, and then the exchange ran away, and both my money and coins were gone;

Case 2: The money was withdrawn to my wallet, but the private key/mnemonic phrase was stolen/I forgot it/wrote it on a piece of paper and lost it...

In fact, relatively speaking, in the cryptocurrency circle, the first situation is the norm. Because most cryptocurrency users are not willing to think, and tinkering with their wallets is a brain-consuming task. Since they don’t want to waste their brains, it is easier to just find an exchange to store their coins. Since they just find an exchange to store their coins, whether there will be problems with the exchange in the future is up to fate.

So how to solve the first situation? You still need to choose a relatively safe and "reliable" exchange. Note that I put quotation marks around "reliable" here. After all, exchanges in the cryptocurrency world will encounter some problems to a greater or lesser extent. The thefts of various exchanges mentioned above can be written into a long list, with the number of lost coins ranging from thousands to hundreds of thousands. Binance, one of the top three exchanges in the cryptocurrency world, lost 7,000 bitcoins two days ago. They even wanted to solve the problem through a fork, but were then criticized by various cryptocurrency users. I guess they will have to pay for it out of their own pockets.

The best way to solve the first situation is to buy coins through exchanges and then transfer them to your own wallet, but then you fall into the vicious circle of the second situation...

Using a digital currency wallet, and a reliable one, requires some tutorials, which are also available on Babbitt, so I won’t go into detail here. What needs to be emphasized is the safekeeping of private keys/mnemonics, which really requires 1.2 million points of attention.

Everyone should try to confirm their own network environment, that their own network has not been hijacked, and that there should be no viruses or Trojans on the computer. Moreover, it is best that this computer is a dedicated digital currency computer, and try not to connect to the network if possible (i.e. cold storage). If the private key/mnemonic is written on paper, do not put it in a book casually. You can buy a small safe on Taobao for only a few hundred yuan. Of course, technology is advanced now. Of course, some merchants have launched some metal private keys. If you want to play with these things, try to play them well, and don't let your hands shake when you use them and drop them on the ground, breaking the metal letters apart.

Only when you can manipulate private keys/mnemonics by yourself can you be considered to have passed the most basic hurdle in the cryptocurrency world.

2. Buying coins

"Which coin to buy" is always a hurdle that the cryptocurrency circle cannot avoid.

Over the years, there is undoubtedly a saying that has been lingering in the ears of all people in the cryptocurrency circle, "Bitcoin has risen so high, it is not cost-effective to buy it again! If you missed Bitcoin, don't miss XX coin..."

However, the irony is that the more a currency was called like this back then, the quieter its voice is now...leaving only one "legend of returning to zero" after another.

Therefore, some Bitcoin users lamented: Whenever a bull market comes, people laugh at Bitcoin's slow growth; but whenever a bear market comes, people return to Bitcoin and praise its strength. This kind of "split personality" is really hilarious.

Here is a reminder: Anyone who enters the cryptocurrency world should at least hold one Bitcoin! This Bitcoin will never let you down.

If you don’t have enough money, you can buy it little by little. Bitcoin is not a carrot. You have to buy the whole one.

After buying one bitcoin, if you still want to buy other coins, it all depends on your mood. Yike will not stop you here. If the coin you want to buy increases by hundreds of times, and you don’t buy it because of Yike’s words, then won’t you have to defend your rights with Yike?

There are a lot of different coins in the cryptocurrency world. Some people advocate "mainstream coins", some people pursue "technical coins", and some people sell "model coins"... If you can make a profit from all these coins, congratulations, after all, there are not many such people. But let me be frank, if you believe that you are a "king", you may have to suffer a lot.

Don't be superstitious about the person who recommends you coins, no matter what kind of "achievements" this person has or how high his "reputation" is. Buying any coin is your own decision, and no one will be responsible for "your own decision". If you listen to the "master" who recommends coins, don't be too happy if the coin goes up, and reflect on yourself more if the coin goes down. Don't try to defend your rights, because it's basically useless. Don't spend a lot of money to pay for any group fees, because this thing will not be refunded to you.

Of course, there are some more peculiar ways to buy coins in the cryptocurrency circle, such as through "agent investment" or participating in "private placement". You should carefully consider the risks of participating in such activities. Risk is always proportional to return. Many people only see how many times they have increased by participating in "certain projects", but ignore how many people's money has been swept away by agents in this way.

3. Seeking Death

Now that you have passed the above security checks and have a clear understanding of the coin purchasing checkpoint, is your wealth now able to grow safely and without worries?

The answer is still no...

There are some barriers to entry in terms of security and coin purchase, but if you think about it carefully, you can still figure out some tricks. And if you really encounter a problem, the exchange or the agent runs away, it is not necessarily entirely the fault of the coin holders.

But what I fear most is that I am killing myself. This is one of the sayings "Misfortunes sent by Heaven can be forgiven, but those brought upon oneself cannot be forgiven."

How many people thought about "selling high and buying low", but ended up having fewer and fewer coins in their hands, and countless people missed out on the opportunity. I have also heard of people who started with hundreds of bitcoins and managed to get only a few... It is really heartbreaking to see and cry to hear.

I have to emphasize here again and again that you should not play with futures blindly... Because the futures in the cryptocurrency circle are really profitable. Please note that this money is earned by the futures exchanges, not the cryptocurrency investors. This logic is a bit miserable, but unfortunately it is the fact.

Retail investors should not touch futures. Futures are used to smooth out fluctuations. They are a means for large investors or quantitative teams to balance spot profits and achieve "hedging". They enter futures to lock in profits, not to gamble.

However, there are people in the cryptocurrency circle who don’t believe in evil and must play futures. The stimulation of futures is simply "toxic". Under the volatility of the cryptocurrency circle, a margin call with a leverage of 20 times may only take a few seconds. Who can resist the temptation of a rise of more than ten times? In the end, the more you play, the deeper you fall, until you lose all your money.

Moreover, some exchanges in the cryptocurrency circle have unique "insertion skills" that can "go up and down" when the market comes, and then easily harvest players. If the cryptocurrency people "knowingly go to the tiger mountain", hoping to "escape from the tiger's mouth", then in fact they will inevitably "die in the tiger's mouth"...

Most people should give up the idea of ​​"buy low and sell high" and "profit from futures", and honestly hold Bitcoin, which is the best strategy in the currency circle. As for other tokens, they should sell them at high prices and exchange them for Bitcoin, which is basically fine.

4. Final Thoughts

In addition to the above pitfalls, there are many other pitfalls in the cryptocurrency circle. For example, there are some branches of mining, such as cloud computing power, mining machine rental and sales, etc. These involve some details. If there is a chance, I will write a special article to talk about it in the future.

Surviving in the cryptocurrency world is a very challenging task. Many veterans have fallen into the above pits and failed.

The cryptocurrency world is precisely looking at the "time effect". If you can keep on playing in the cryptocurrency world, you may be able to reap huge profits one day. After all, someone once said, "It doesn't matter when you get on the cryptocurrency world, what matters is that you never get off."

I hope that all cryptocurrency holders can read this article carefully, draw inferences from it, fully absorb lessons learned, make bold assumptions, try carefully, and gradually build their own investment model in the cryptocurrency circle to avoid becoming the "denominator" of cryptocurrency losses and ultimately achieve the grand goal of "wealth freedom".

Author: Lonely Stranger