The cryptocurrency market today is no longer a niche game. After mainstream forces like the United States gradually intervened, the market is becoming increasingly "mainstream," no longer just a few brave individuals willing to believe and take risks as in the early days. Those who entered the market first account for a very small proportion of the entire investment community and thus are more likely to benefit from early dividends.
However, the direct result of this mainstreaming is: an increasing number of retail investors, especially in an environment where liquidity is scarce, making it more difficult for the market to achieve a situation where "everyone can make money." We are all familiar with the 80/20 rule, and the cryptocurrency world is no exception—there's only so much cake, and it will always be a minority that gets a share. Either the cake continues to grow to accommodate more people, or a portion of people are "asked" to leave the table through cyclical fluctuations, allowing the remaining individuals to receive a larger share.
I believe these two situations will happen simultaneously in the crypto space: on one hand, the industry is slowly expanding under regulation, institutional funding, and technological implementation; on the other hand, the bear market and volatility will continue to filter participants. So, which types of people are more likely to be washed out in the next round?
1. Contract players
These people have weak volatility resistance; once they are liquidated, they often exit directly and find it difficult to return to the market with a rational attitude.
2. Those who heavily invest in altcoins, fantasize about getting rich overnight, and lack stable cash flow
They rely on holding on stubbornly, but in reality, there are always expenses and pressures. Once money is needed, they will be forced to sell off their chips at inappropriate prices, gradually exiting the market. If the bear market lasts for several more years, it will be even harder for these people to endure—marriages, funerals, births, illnesses, home loans, and car loans will all become reasons for 'passive exits.'
3. Retail investors who buy junk coins and ultimately go to zero
Being swept up by concepts, pump-and-dump schemes, and emotions, those who fall into high-risk scams or inferior projects often leave completely after their assets go to zero.
4. Those who lack cash reserves and encounter life changes
This is a combination of luck and risk management. Without a safety cushion, if unexpected situations arise in life, one can only be forced to exit.
So, to become the ultimate winner, the core is not to predict short-term ups and downs, but to avoid becoming one of these four types of people: those who do not entrust their fate to high leverage, those who do not bet all their assets on high-narrative low-value targets, those who do not touch obvious Ponzi schemes and junk projects, and those who leave enough cash and a buffer for their lives.
When the market continuously 'cleans out' people during cycles, and the industry is continuously 'growing' in the long term, those who can stay will naturally find it easier to become part of the 20% beneficiaries. I hope both you and I can broaden our horizons and make good plans for 5 and 10 years: survive, endure, and wait for the wind to come—let the storm come even stronger.
