Babbitt Column | I see the "three 1s" of cryptocurrency investment

1. What do their wealth and freedom have in common?

I have been in the "currency circle" for a long time, and I hear a lot of strange investment methods every day. Some people buy low and sell high every day, chase up and sell down, some people like to increase leverage, and some people like to use short-term news. Going long and short is a joy to play. In most cases, the result is "one operation is as fierce as a tiger, and the loss is 25,000 at a glance."

Is there an investment method that is simpler, has a higher winning rate, and can make a lot of money?

There are indeed some people in the currency circle who have achieved wealth freedom through investment alone. Take a few examples that everyone knows, such as Li Xiaolai, such as Dakongyi.

  • Li Xiaolai held 6-figure bitcoin for a long time and became the "richest person on the blockchain";
  • By holding a large number of IOTAs, Dakongyi became famous in the First World War, earning more than 1 billion yuan.

In fact, in addition to them, there are many people who have earned a lot of money through investment in the currency circle through proper channels. If you study their investment methods in detail, you can find some common points. These common points may be that our investment in the blockchain field is more profitable. good idea.

I summarize these common points into "Three Ones", which I call the " Three Ones Principle ":

1. Only make one transaction within four years.

2. Only hold one currency at a time.

3. Holding one thousandth of the total amount of a currency.

Only make one sale in two or four years

Some people will say, have you been too long for four years? You asked me to trade once a month, and I might barely accept it. You asked me to trade once every four years. Isn't it waiting for the daylily to be cold? Some people have different perspectives. Why would he say it is four years instead of three years?

In fact, three years and four years are not the focus. The four years mentioned here are only approximate numbers, and there is no strict mathematical certification. The basic idea behind it is to hold for a long time and earn long-term income. If you are confident in the assets you hold, you have been hoarding them, let alone not selling them for four years, not selling them for five years, and not selling them for ten years.

But generally speaking, the phenomenon of a four-year cycle in the currency circle is quite obvious, so the number of four years is taken here. The meaning behind it is to grasp the large cycle and give up short-term transactions.

Frequent short-term trading, long today, short tomorrow, bullish today, bearish tomorrow, or the so-called wave trend will eventually make it difficult to make money, at least not to make a lot of money. I have seen many such cases. Those who do short-term and wave bands may have good returns in the short term, and even double or double, but when the real mega trend comes, he will definitely miss it, and 100% will miss it. He may have made the principal from 10,000 to 20,000, but he will miss the opportunity to change 10,000 to 100,000 or even 1 million. He will definitely miss it. Without exception, there is no second result.

Only by insisting on long-term investment can long-term gains be obtained. This is not a simple length of holding time, but a matter of philosophy. Those who are willing to make long-term investments, they are not born willing to hold for a long time, but they are not the same point of view, they are not valued to buy low and sell high, or simply a band of profits, they see What is more ambitious profits. If they use the compound interest curve to represent it, what they value is the steep rising curve on the compound interest curve, and those short-term operators earn basically a long straight line in front.

In addition, buying and selling once every four years has another meaning: In investing, you should wait most of the time, you need to wait for the best opportunities that even fools know (such as in the financial crisis) (Such as when plunging, serial bursts), you need to rely on patience to make a profit, rather than using your "trading skills" to make a profit.

3. Only hold one currency at a time

I often see the [My Optional] section of some friends, there are 10 or even 30 varieties, I was thinking, have you really seen it? Buffett said something very well: "When you have 100 wives, you can't understand any of them."

The less you pay attention and the more focused you are, the deeper you will understand.

You know, knowledge is also a compound interest effect . When you pay attention to 30 companies at the same time, then your attention in each company is extremely limited, so you probably only know the K-line and short-term news. At this level, you can't understand very deeply. But if you do n’t understand it deeply and your cognition cannot surpass others, then how do you get excess income?

If you devote all your time and attention to knowing a company, then you will know more and more about this company, and you may encounter difficulties in the development of the company, possible opportunities, and other aspects. Going deep, you have the opportunity to have deeper contact with the company's management, and even provide various resources for the project, and then help it grow. The role of this focus and in-depth participation in the project is far from what you can obtain by studying 30 projects at the same time. The two are essentially different.

Moreover, the selection of only one company here does not simply require you to reduce your choice from 30 to one, but requires that you have the ability to screen out the best and greatest currency.

Instead of choosing 1 out of 30 from your own selection, but choosing the one with the most potential from the thousands of tokens in the market, this is the greatest manifestation of cognitive ability and the core step in investment. Most people don't have this ability. Who needs this? This requires those professional investors who have a very deep understanding of the entire blockchain industry, have had deep-level contacts with the project party, can directly contact senior management, the project party, and even those who can directly participate in the project operation, To reach this level of awareness, ordinary people, it is difficult.

Investing in only one currency at a time has the added benefit of getting a good night's sleep. When you pay attention to 30 projects at the same time, there are always one or two projects to produce moths, then you may be restless all day. When you only focus on one company, you can basically predict what might happen in advance, and you will probably know what the consequences and effects will be, so you can fall asleep every night. This may be a lot of things. People are not important, but they are very important to me personally.

Fourth, holding one thousandth of the total amount of a currency

Holding one thousandth of the total amount of a currency, I mentioned in a previous article: if you are optimistic about a company, if you really spend a lot of energy researching this company, If you are sure that its future growth is very high and it will become a giant company, then you must not make a fuss about it, and do not miss this golden opportunity. At this time you should be very greedy to get chips, you should find ways to get more chips, you have to turn all the huge fluctuations into opportunities for you to get more chips at a low price, you have to long-term this seemingly unfavorable factor can also change A favorable factor for you to continue to collect more chips. To what extent did the chips have been collected? Only one thousandth of the total amount of tokens collected is considered to be barely up to the standard. If the total amount of tokens is 100 million, your target should be 10W, if the total amount of tokens is 1 billion, then your target should be 100W;

But many people do not quite understand this. They have two questions: one is how to hold one thousandth of the total project? The other is whether such concentrated investment would be too risky.

For the first question, the answer is: it is never easy to get one thousandth of a chip in a project. It may be your goal for a long time, such as 3 years, 5 years, and at the same time it requires you a constant source of funds; it requires you to buy a lot in the extreme market, accumulate a lot of chips; it even requires You are deeply involved in the project to become part of the project ecology, continuously providing resources to the project, etc. so that you have the opportunity to complete this goal.

For the second question: My personal answer is that your goal now is not to outperform a certain market, not to pursue a certain 20% rate of return. You are pursuing greater returns, and may even be a chance for class leap. Then compared to diversified investment, concentrated investment is a better choice at this time. And, in essence, your cognitive ability is your best hedge.

If you really want to diversify your investment, it is entirely possible for you to obtain one thousandth of the total amount of a certain currency and then acquire one thousandth of another few coins. Is this also a diversified investment? The two are not in conflict. The key is that under the circumstance that the currency circle such as fish and dragon mixed currency and air currency are rampant, it is far better to concentrate the chips on a high-quality currency than to scatter them in a pile of garbage.

V. Conclusion

We want to catch a dragon, not a sparrow flying around.

Concentrate all your energies, choose a project with real potential, study it thoroughly, and even find ways to participate in the project construction; obtain enough chips through various channels, long-term holding, fewer transactions, and no disturbances. If you look after the year, maybe you are the next legend.

The several investment principles introduced here may be slightly different from the daily operations of many people, but this is the common point of the previous group of people who achieved wealth freedom through investment. I think it will be very useful for our future wealth accumulation. .