Hi, if you are on the threshold of the crypto market, you must have had feelings of excitement, confusion and expectation about the opportunities it brings. You may have heard about people who “changed their lives” by investing in Bitcoin, Ethereum or even memecoins like Shiba Inu. That probably motivated you to be here!
But wait, do you really understand who you are in the crypto market? Did you know that each group of market participants has different goals, motivations, and approaches? By identifying yourself, you will know what you need, where you should start, and how to avoid unnecessary risks.
To start the journey from 0 to 1, join me in this article!
Who are you?
Before you dive into the crypto market , stop and ask yourself: “Who are you in this market? What is your motivation to start?”
Your motivation will guide your journey through the volatile world of crypto. Understanding your true goals and motivations will help you gain clarity and avoid blindly acting, following the crowd, or getting caught up in risky price crazes.
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Are you driven by the desire to get rich quick? Are you motivated by stories of people who made millions overnight with crypto?
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Are you interested in blockchain technology and the change it can bring to the world? Do you want to get involved and contribute to the development of this technology?
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Do you crave financial freedom and want to find a long-term investment solution to build stability for your future and your family?
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Or are you simply curious, wanting to explore and understand the world of decentralized finance, learn and accumulate knowledge?
If you don’t fit into any of these categories, that’s okay! These are just some of the most prominent examples to help you define yourself.
If you want it all, great! You know your needs, let’s find a solution.
So, what is the question who are you used for?
The answer will determine the path you take in the crypto market. There is no right or wrong answer – the important thing is to know which group you belong to. From there, we will set up a plan, goals and strategies that are suitable for you.
Crypto is not a place to jump into randomly , but a market that requires understanding, patience and a clear strategy. Crypto is not only an opportunity, but also a challenge. Ask yourself, to find out “who am I in this market”.
And, why are you here?
Why are you here?
Be honest with yourself. Why do you want to get into the crypto market?
“I want to get rich quick”
One of the biggest reasons people are attracted to crypto is because of the potential for high returns in a short period of time. For many, especially the younger generation, crypto is not only an investment opportunity but also a shortcut to wealth, especially after witnessing spectacular success stories.
According to statistics from Statista (2023), up to 78% of crypto users enter the market with the desire to earn high profits. This is not only happening in developed countries, but is also very popular in developing countries like Nigeria, where 32% of people use crypto as a primary investment vehicle.
According to Finder’s 2022 survey, up to 21% of Vietnamese people participate in the crypto market, a remarkable number in Southeast Asia. Young Vietnamese people are increasingly sensitive to blockchain technology and new opportunities, not wanting to miss out on major market changes.
A typical example is Erik Finman – a young man who invested $ 1,000 in Bitcoin in 2011, when he was only 12 years old. By 2020, Finman’s assets exceeded $ 4 million thanks to the explosion of Bitcoin prices, making him one of the youngest millionaires from crypto. Finman once shared: “Bitcoin changed my life. It is one of the biggest opportunities any young person can reach.”
I want to be “financially free” and retire in my “twenties”
Many people are getting into crypto not just for the immediate profits but also for the desire to achieve financial freedom . They want to make money without having to work a 9 to 5 office job, and crypto seems to offer that opportunity.
According to Gemini’s 2023 survey, 45% of crypto participants wanted to achieve financial freedom and escape traditional jobs. Of these, more than 60% were office workers and freelancers.
The yield source in DeFi attracts trend-following investors to generate stable and long-term profits.
Brandon Quittem, a former office worker, quit his stable job to enter the crypto market. He started by staking and yield farming on DeFi protocols, earning steady profits from his holdings.
Brandon shared: “I have not had to work full-time since getting into crypto. Passive income from DeFi has helped me escape the traditional job cycle, giving me financial freedom and time to pursue other passions.”
I am a professional investor
Investors with experience in traditional financial markets such as stocks and real estate are also gradually turning to crypto to diversify their investment portfolios.
Bitcoin , considered “digital gold,” has become an important tool for investors to protect their assets against inflation. With a limited supply of only 21 million coins, Bitcoin cannot be “printed” like fiat money , making it a hedge against inflation and currency devaluation.
Fidelity (2023) reports that more than 60% of traditional financial investors have added Bitcoin or Ethereum to their portfolios. They see these assets as a means to diversify risk and protect asset value during difficult economic times.
Paul Tudor Jones, one of the world’s most famous investors, has added Bitcoin to his portfolio to hedge against inflation.
“Bitcoin is a great hedge against the devaluation of traditional currencies,” he commented . “I believe it will play a major role in the future of finance.” Paul Tudor Jones is not alone. Elon Musk and many other major investors have also publicly owned Bitcoin as part of their asset allocation strategies.
Paul Tudor Jones emphasized in an interview with CNBC that he wants to add Bitcoin to his portfolio.
Opportunity for Trader – “I’m here for chart”
In the crypto market, the high volatility of prices creates a golden opportunity for traders who are not looking for long-term profits but instead, profit from short-term trades. With its 24/7 nature, the crypto market is completely different from traditional markets such as stocks. This allows traders to take advantage of constant volatility to maximize profits, regardless of the time of day or night.
According to a Binance survey (2023), more than 40% of crypto users are professional traders or short-term traders. Platforms like Binance Futures have become a place where many traders take advantage of derivatives and leverage to maximize profits from strong waves. This proves that there is no shortage of opportunities for those with skills.
“I’m here for tech”
Aside from financial factors, many people are entering the crypto market simply because of their passion for technology. They see the potential of blockchain technology to change many fields such as finance, art, and even entertainment.
According to DappRadar (2023), the number of users participating in applications in the crypto market has grown by more than 60% in the past year, with more than 3 million daily active wallets on platforms such as Ethereum, BNB Chain, and Solana.
Beeple, a digital artist, made waves when he sold his NFT work for $69 million in 2021. This is one of the biggest milestones in digital art, opening a new era for the creative industry.
Not just Beeple, thousands of other artists, developers, and creators have also ventured into the world of NFTs and the Metaverse , where they can explore the endless possibilities that blockchain offers.
For tech enthusiasts, crypto is more than just an investment – it’s a technological playground, a testing ground for creative ideas and groundbreaking innovation.
Where should you start?
If you are a complete newbie and have little knowledge about the crypto market, the first thing you should not do is to pour money into buying coins just because they are trending. It may be tempting, but the crypto market not only offers potential profits but also full of risks if you are not prepared.
If you are not exactly new, you have a few months of experience, you are already a successful trader in the traditional market… No matter who you are, when you step into a field
Investing in knowledge – The safest investment
The crypto market is very volatile, and people without basic knowledge often fall into the trap of short-term trends and lose money. Even professionals and experienced people still fall into these “traps”.
The most important thing before you enter the market is to learn and equip yourself with basic knowledge. This is an indispensable step, regardless of which group of participants we have discussed above you belong to.
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Learn about blockchain technology : Understanding how the underlying technology of crypto works will help you take a long-term view and properly evaluate the potential of projects.
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Understanding Cryptocurrencies : Know the difference between Bitcoin, Ethereum, and millions of other altcoins. Each has its own uses, features, and goals.
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Market Analysis : Learn to read price charts, understand market cycles, and understand what influences the value of cryptocurrencies.
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Investing – no matter what market, be it stocks, real estate or crypto – requires time, effort and money . As well as “knowledge, experience and experience”.
Learn to manage emotions and avoid FOMO
Greed and emotions will inevitably lead to bad investment decisions. To be successful in crypto, you need to learn to control your emotions. One of the biggest mistakes is being overwhelmed by FOMO (Fear of Missing Out).
They see people around them making money from crypto and rush in with the desire to “get rich overnight”. However, this can lead to wrong decisions, such as “chasing the top” of the coin or investing all their assets in an unstable coin.
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Don’t let FOMO or greed get the better of you. Short-term volatility can be tempting, but true success lies in building a long-term, sustainable strategy.
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Build a patient mindset. Crypto is a new market and successful investors are usually those with a long-term vision and know how to wait patiently for the right opportunity.
Always remember: Don’t rush into the market just to make quick money.
Risk management is mandatory
Risk management is vital for any investor, especially in the crypto market – where price fluctuations can be sharp and unexpected. Unlike Vietnam’s traditional stock market, crypto has no limit on fluctuation range, meaning prices can skyrocket or plummet in a very short period of time. This creates opportunities but also poses the potential for huge losses if risk is not managed properly.
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The golden rule is to never invest more than you can afford to lose. Since the crypto market is highly volatile, it is entirely possible to lose your entire capital overnight.
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Make sure your investment is a small portion of your total assets, and if you lose it, it won’t seriously impact your financial life.
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Manage risk by diversifying your portfolio . Never put all your money into a single coin, no matter how much you believe in it.
Don’t fall into the “chicken herding” trap
The crypto market is rife with advice, misinformation, and scams that aim to lure newbies. Scammers often prey on the greed of the uninformed, leading them to invest in high-risk projects without fully understanding them.
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Don’t listen to all advice from unknown sources. When someone tells you to buy a coin, do your own research before making a decision. If you don’t know why you’re buying it, then don’t do it!
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Build a solid knowledge base. If you understand the market well, the concept of “herding chickens” will never be in your dictionary. You will confidently make calculated investment decisions.
Crypto is not an easy market , it never has been and it will never be easy. But with a solid foundation of knowledge and patience, you can absolutely take advantage of the opportunity to build your financial future.
