CoinWorld News Report:
Author: DaPangDun
Long-termism, seemingly an unpopular term in the current context, as most people in the industry are pursuing “opportunities to get rich quickly” and “instant wealth feedback”.
In the general understanding, long-termism is equivalent to being a “Holder”. But Holder reflects more of an investment strategy, referring to a group of people who have a “long-term asset holding” strategy; whereas long-termism, in my opinion, has a different and richer connotation.
In my mind, the definition of long-termism can be summarized as follows:
1. People who actively participate and progress in the crypto industry in the long term.
This definition includes the following aspects:
1. People: a general term.
It can refer to investment institutions, project parties, or individuals; it can be traders, researchers, technicians selling tools, and various other roles.
2. Long-term: reflects a mindset of persistence.
Many people enter the crypto industry for short-term gains, hoping to speculate and then leave during a bull market or make quick money, but long-termism is about experiencing the ups and downs of the industry and witnessing its development together.
3. Positive: reflects an attitude of participation.
Many people consider the money in this industry as “extra income”. Due to the lack of regulation, various scams are prevalent, and there is no positive aspect to the industry itself. The emphasis on positivity is to “make money in the right way” and at least not have a negative impact on the industry.
4. Progress: reflects self-improvement.
We can introspect and see how much we have changed during our participation in the crypto industry over the years, focusing on whether we have made progress in various aspects, whether it’s trading skills, industry knowledge, or circle resources. If we are always stagnant or even regressing, it is difficult to become long-termists (because it is difficult to achieve positive feedback both psychologically and financially).
II. How to become a long-termist?
As I do not have experience as an “investment institution” or “project party”, I will explore how “individuals” can become long-termists based on my limited knowledge and discuss it with everyone.
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 about in the next year?
Most people may have already left, and the majority remaining may be discussing which coin to speculate on every day, maybe contracts, maybe “Tu Gou” (a Chinese term for a certain type of cryptocurrency), year after year, seemingly without much change.
Many people participate in this industry with only the goal of making money in mind, but they have not set a path for themselves on how to achieve this goal.
Therefore, most people will be floating in the market’s hotspots. Today, they focus on one thing, tomorrow they focus on another, and the day after tomorrow they focus on mining. However, they have not considered their own capabilities, where their strengths lie, and it is not easy to truly understand any field by simply reading a few articles. The same goes for coin speculation. While others can make a profit, you may end up losing. The same goes for mining. While others can mine continuously, you may not be able to afford the machines. The same goes for “Tu Gou”. While others can make tens of multiples in profit, you may end up losing money. In the end, you may think, forget it, I’ll just speculate on coins. Speculating on coins seems simple, just “buy” and “sell” buttons, easy, no need to think too much. But is speculating on coins really that simple? In my opinion, speculating on coins is actually the most difficult. Do you have standards for selecting targets? Do you have a well-developed trading strategy? Do you have confidence in your own strategy? Do you have the ability to withstand pressure when facing significant market fluctuations?
Therefore, positioning is crucial!
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 speculating on coins, you can try to be a “speculator” or a “coin speculation blogger”; if you are good at trading, you can try to be an experienced “trader”; if you have resource advantages, you can try to be a “moderator”. Of course, I’m not suggesting that everyone should completely focus on one aspect. Perhaps you can take on multiple roles, but it will be much more challenging to achieve comprehensive development if you cannot deeply engage in one aspect.
Find your own positioning and set such a goal, strive to achieve it, and see the results after one year, or even half a year.
2. Reasonable wealth expectations
I believe that the vast majority of people who enter this industry have expectations of “financial freedom” and “getting rich quickly”, which include requirements for “total wealth” and “the time it takes to acquire wealth”.
So why are stories of “getting rich quick” so attractive (even though some are easily proven to be false)? It’s because they are truly tempting and perfectly align with our fantasies when we enter this industry.
But the reality is: take a look at the people around you who are involved in crypto. How many of them have achieved such goals? (Note: I’m referring to proportions, not just individual cases, as individual cases, if they do not happen to you, are not meaningful.)
Do some research on the current situation of those who have indeed “gotten rich quick”. Are there not many unfavorable outcomes? “Preserving wealth” is actually more difficult. I know someone who went from having 10 to 800, but in the end, they lost it all. Maybe you think this is a form of experience, but most people cannot overcome the psychological impact of such experiences.
Recently, I saw a viewpoint that says the crypto industry has no value and is just creating a large casino, and this viewpoint has gained recognition from many people. I think this is an illusion magnified by “unreasonable wealth expectations.” Everyone wants to get rich quick, and stories like this have the most circulation in the market. However, in the extreme PVP (player versus player) environment, while one person makes a lot of money, there are actually hundreds or thousands of people losing. So if you think Crypto is just a casino, then I suggest you leave now, because the crypto gambling world is highly unfair, with 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,” and long-termists should continue to pay attention to its impact on changing the real world.
Facing the desire for “getting rich quick,” ask yourself honestly: “Why should it be me? Am I the chosen one?”
Therefore, reasonable wealth expectations are crucial. It will allow you to face this market in a more calm manner, and at the same time, it is a quantifiable goal that will make your progress within the industry more stable.
My wealth goal in the industry is to strive to reach a stable income level comparable to my traditional industry salary (30) within 3-5 years.
3. People love money, but take it ethically
Everyone has different ways of making money in this industry, but not everyone adheres to the principle of “taking it ethically”. Some people create groups to exploit group members, engage in insider trading to exploit the community, commit fraud, or steal.
To survive in the industry in the long term, “reputation” is actually quite important. Many people may not agree with this and may use past major losses as evidence. Perhaps the memory of retail investors is limited like fish, but “historical records” are always there, waiting to be discovered, especially in this era of highly circulated information.
Sometimes, I think that “unreasonable wealth expectations” and “lack of regulation” are important factors leading to “unethical behavior”. The inability to achieve self-set wealth goals leads people to consider more speculative and even gray areas. The vagueness of regulations allows such behavior to go unpunished, thus encouraging 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 money should not be made.
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 what matters.”
This statement may sound reasonable, but think about it carefully. Without learning, where does your thinking about making money come from? On what basis? Where does your confidence come from?
Learning doesn’t guarantee making money, but it can give you a better understanding of the entire industry, provide more basis for your judgment, and allow you to have a clearer understanding of how money is made and lost.
I encourage everyone to keep learning in the community and on Twitter. I myself practice this as well. Although I am limited by my level, progress from learning is slow, but over the past year, I can feel the difference compared to before, and my understanding of many things has indeed reached a deeper level.
5. Reject internal conflicts
Internal conflicts are very draining and can greatly affect emotions. In my experience over the past year, it is important to keep your body and mind simple and maintain stable emotions, which can significantly improve efficiency.
Most internal conflicts in this industry stem from “anxiety caused by wealth events” and “losses caused by market volatility,” both of which are related to money.
Therefore, reasonable wealth expectations are an effective solution.
Another simple way is to “simplify your investments.” Set a logic, then trade or invest based on it, make appropriate feedback adjustments along the way, and avoid changing your strategy on a whim or trading impulsively due to emotions.
One more thing that may work is: don’t care too much about others’ opinions, do what you enjoy, don’t seek recognition from others, and only follow your own heart.
On the path of becoming a “long-termist in the crypto industry,” may we walk together!
