Coin World Report:
Author: DaPangDun
Long-termism, in the current context, seems to be an unpopular term, as most people in the industry are pursuing “opportunities to get rich quick” and “instant wealth feedback”.
In the perception of most people, long-termism is synonymous with “Holder”. However, Holder primarily reflects an investment strategy, referring to a group of people who adopt a “long-term asset holding” strategy. In my opinion, long-termism has different and richer connotations.
In my mind, the definition of long-termism can be summarized as follows:
1. Individuals who maintain positive engagement and progress in the crypto industry for the long term.
This definition includes the following aspects:
1. People: a general term.
It can be investment institutions, project teams, or individuals; it can be traders, researchers, technicians, and various other roles.
2. Long-term: reflects a commitment to a certain way of thinking.
Many people enter the crypto industry for short-term gains, aiming to speculate and exit during a bull market or make money during a bear market. On the other hand, long-termists are committed to enduring the ups and downs of the industry and witnessing its development.
3. Positive: reflects an attitude of participation.
Many people view the money in this industry as “extra income”. Due to the lack of regulation, various scams and frauds are rampant, which has a negative impact on the industry itself. The emphasis on positivity is to “earn money in a proper way” and at least not have a negative impact on the industry.
4. Progress: reflects personal requirements.
We can reflect on ourselves and see how much we have changed during our involvement in the crypto industry over the years. We should focus on whether we have made progress in various aspects, such as trading skills, industry knowledge, or circle resources. If we are constantly stagnant or even regressing, it is difficult to become a long-termist (because it is difficult to achieve positive feedback in terms of both psychology and wealth).
Second, how to become a long-termist?
Since I lack experience as an “investment institution” or “project team,” I will discuss how independent individuals can become long-termists based on my limited knowledge.
1. Clear positioning
Please carefully observe the people around you who are involved in the crypto industry. What changes have they undergone in the past year and what will happen in the next year?
Most people may have left the industry, and the remaining majority are likely just discussing which coin or contract to speculate on every day. Year after year, it seems that there hasn’t been much change…
Many people who enter this industry only set the goal of making money, but they fail to set a path for themselves to achieve this goal.
Therefore, most people will wander around every market hotspot. Today, they focus on one thing, tomorrow on another, and the day after tomorrow on something else. But they fail to think about their own abilities and advantages. It is not easy to truly understand any field just by reading a few articles. Even if it’s the same thing, others may succeed while you fail. Therefore, positioning is key!
Think carefully about where your strengths lie and find your own positioning.
If you are good at technical analysis, you can try to be a “researcher”. If you are good at speculation, you can try to be a “speculator” or a “speculation blogger”. If you are good at trading, you can try to be a seasoned trader. If you have resource advantages, you can try to be a “moderator”. Of course, I’m not suggesting that everyone should focus solely on one aspect. Perhaps you can have multiple roles. However, if you are unable to specialize or excel in one aspect, it will be more difficult to achieve “comprehensive development”.
Find your own positioning, set such a goal, and strive to achieve it. After one year, or even six months, evaluate the results.
2. Reasonable wealth expectations
I believe that the wealth expectations of most people entering this industry are “financial freedom” and “getting rich”. This includes the requirements for “total wealth” and “time to obtain wealth”.
So why are stories of “getting rich quick” so attractive (even if some can be easily proven false)? It’s because they are really appealing and perfectly match our ideal of entering the industry.
But the fact is, look at the people around you who are involved in crypto, how many of them have achieved these goals? (Note: I’m talking about proportions, not just individual cases. Individual cases are meaningless if they don’t happen to you.)
Furthermore, investigate the current situation of those who have truly “gotten rich quick”. Many of them may not have a good outcome. “Preserving wealth” is actually more difficult. I know someone who went from having 10 to 800 coins, only to end up losing everything. You may think this is a form of tempering, but most people find it difficult to overcome such experiences.
Recently, I saw a viewpoint that the crypto industry has no real value and is just a big gambling house. This viewpoint has gained recognition from many people. I believe this is an illusion caused by an “unreasonable wealth expectation” magnified. Everyone wants to get rich quick, and such stories have the most attention in the market. However, in this highly competitive environment, behind one person making big money, there are actually hundreds or thousands of people losing money. So if you think crypto is just a gambling house, I suggest you quit now, because the gambling environment in crypto is very unfair. There are all kinds of insider trading, and it’s better to go to a casino in Macau. The essence of crypto is not a “dopamine game”. Long-termists need to pay attention to its impact on the real world.
When facing the desire for “getting rich quick,” ask yourself, “Why me? Am I the chosen one?”
Therefore, reasonable wealth expectations are important. They will allow you to face the market more calmly, and they are also a quantifiable goal that will make your steps in the industry more stable.
My wealth goal in the industry is to achieve a relatively stable income level equivalent to my salary in the traditional industry within 3-5 years.
3. Honorable acquisition of wealth
Everyone has different ways of making money in this industry, but not everyone adheres to the principle of “honorable acquisition”. Some people create groups to exploit their members, engage in insider trading within communities, commit fraud, or engage in theft.
To survive in the industry in the long term, “reputation” is actually quite important. Many people may not agree with this and cite some examples of “past big losses” as evidence. Perhaps our memory as retail investors is limited, but “historical records” are always there, waiting to be discovered, especially in this era of highly circulated information.
Sometimes, I feel that “unreasonable wealth expectations” and “lack of regulation” are important factors that cause some people to engage in dishonorable behavior. The inability to achieve self-set wealth goals leads people to consider more speculative or even gray areas. The vague regulations also prevent such behavior from being effectively punished, thus fostering such an atmosphere.
Since we want to be long-termists, we should have our own “persistence” and know what money can be made and what cannot.
4. Maintain a learning attitude
Many people have told me, “Learning is not important. What’s the use of learning so much? Making money is the most important.”
This statement may sound reasonable, but think about it. Without learning, where does your money-making strategy come from? Where does your basis come from? Where does your confidence come from?
Learning does not guarantee making money, but it allows you to have a better understanding of the entire industry and more basis for your own judgments. At least you will have a clearer understanding of how money is earned and lost.
In the community and on Twitter, I encourage everyone to keep learning. I also practice this myself. Although I have limitations in terms of expertise, learning brings slow progress. However, in the past year or so, I have felt a difference in myself compared to before. My understanding of many things has indeed reached a deeper level.
5. Reject internal conflicts
Internal conflicts are very exhausting and can greatly affect emotions. In my experience over the past year, I have realized that it is important to keep oneself simple and maintain stable emotions, which significantly improves efficiency.
Most internal conflicts in this industry stem from “anxiety caused by wealth events” and “losses due to market fluctuations,” both of which are related to money.
Therefore, having reasonable wealth expectations is an effective solution.
Another simple way is to “simplify your investments”. Set a logic, make trades or investments, make appropriate feedback adjustments along the way, and avoid changing your strategy impulsively or trading recklessly due to emotions.
Also, don’t pay too much attention to what others think. Do what you love, seek your own satisfaction, and follow your own inner voice.
On the road to becoming a long-termist in the crypto industry, let us walk together!
