Episode 1 - Knowledge Makes the Crypto Game Tougher

1 Sep

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The More Traders Are Knowledgeable, The More the Game Becomes Tough

More People Jump into the Crypto Space
In today's world, more and more people are becoming interested in investing in financial markets. Social media influencers frequently encourage their followers to invest, presenting it as a path to financial freedom. While trading in the stock market requires a significant amount of capital and a deep understanding of a company's financial system, many people are turning to the crypto space instead. The barriers to entry in crypto are lower, and the market is known for its high volatility, which attracts people looking for quick profits.

Crypto Is Not the Same as Before
In the early days of crypto, making money seemed much easier, especially during bull markets and altseasons. Back then, there were only a few popular coins, and traders could make massive profits in just a few weeks. Many new traders today look at historical charts and expect the same kind of gains, hoping their chosen coins will follow the same patterns.

However, today’s market participants are far more knowledgeable than before. There are countless free courses online, helping people learn about bull and bear markets, support and resistance levels, volume trading, and moving averages. Traders now understand these concepts well and are aware of the different market phases. They know not to buy at the peak and to try to buy at the bottom.

Despite All the Knowledge, 90% of Market Participants Still Lose Money
Even with all this knowledge about technical analysis, fundamental analysis, and money management, most traders still lose money. The key reason is that crypto is not just about numbers; it’s an emotional game.

The idea of "buy low, sell high" is easier said than done. When prices are low, bad news and fear often dominate, leading traders to think, "I'll wait for a bigger drop" or "This coin might go to zero". On the other hand, when prices are high, people rush to buy, fearing they’ll miss out on the gains, thinking the coin has already validated its low.
Even if someone buys at a low point, they might hold on too long, saying things like, "There's strong buying power; let's hold" or "I’ll wait for the first signs of a decline". But coins often don’t give clear warning signs before they start dropping. Many traders find themselves regretting not selling at 10x gains and end up with just a 10% profit or even a loss. As prices dip below their entry point, emotions like regret, shame, and frustration set in. Statements like "I’ll hold for the long run" are common, but most end up selling at a 50% loss because they need liquidity for other opportunities.

Why Has the Game Become Tough?
The answer to this question will be revealed in the next episode. Stay tuned !