How to reasonably get rich during a bull market cycle

Source: Talking About Li and the Outside

Many people enter this field hoping to get rich overnight, but such things are better left as thoughts. If every ordinary person could easily become wealthy overnight in this field, then there would likely be no poor people in the world.

It can only be said that compared to traditional finance, the crypto space is still in a relatively gray area, which means there are many speculative opportunities hidden within it. Especially during bull markets, it is common for many projects to see daily increases of several times or even dozens of times, and some MemeCoins can rise hundreds or thousands of times within hours.

Overall, people (mainly retail investors) in this field are currently accumulating wealth mainly through the following methods:

• Holding tokens that are likely to increase over time (like BTC)

• Participating in speculative trading of tokens that grow rapidly in the short term (like some altcoins or MemeCoins)

• Using DeFi and other methods to obtain relatively high annual returns

However, based on past experiences and observations, perhaps only 1% of those who attempt to speculate on rapidly growing tokens end up making significant profits.

Many people, after entering this field, are easily influenced by various news and opinions from others (like various KOLs), and often see something trending and immediately jump in, ultimately becoming the ones left holding the bag without realizing it.

In previous articles from Talking About Li and the Outside, our consistent advice has been to focus on 1 to 3 niche areas that you believe in and conduct in-depth research to discover and position for potential opportunities in advance. In other words, we need to pay attention to strong narratives we believe in, such as AI, RWA, DePIN, and Memecoin, and then look for potential opportunities within them, rather than blindly buying whatever others say is good.

Alternatively, we can think from a different perspective: instead of bearing higher risks and chasing what everyone else is chasing, it might be better to pay more attention to things that people continuously complain about. Perhaps you will eventually discover a better opportunity.

Many people always focus on the present and fail to see the farther future, showing anxiety over current matters. A simple example is that since this cycle began, Bitcoin has risen from a relative range of $15,000, fluctuating to the current $91,000. During each past rise, many people waited for a pullback, swearing that they would buy in as soon as there was a dip. Yet during each past decline, many continued to hesitate, forgetting their previous vows, and thus they watched Bitcoin reach its current level.

(Source: Talking About Li and the Outside eBook "Blockchain Methodology" Volume 1)

In such matters, we should think and understand the concept of time frames more carefully. Many people claim to be long-term investors, but in reality, their so-called long-term investments can only be held for a few weeks or at most a few months. If your perspective can only see a few weeks or months ahead, you may become anxious. In fact, things that seem to be declining in the short term may have higher potential when viewed in a broader context (globally) and over a longer time frame. For example, even if Bitcoin drops from $91,000 to $81,000, we cannot deny that it may reach over $100,000 in the future.

Holding tokens that are likely to increase over time is the golden rule for reasonable wealth accumulation during a bull market.

Since 2022, Talking About Li and the Outside has been sharing our own investment plans and strategies, suggesting that at least 50% of your portfolio should be invested in Bitcoin. Sticking to dollar-cost averaging during a bear market and patiently waiting to sell in batches during a bull market is a wealth-building principle that almost everyone can understand. However, based on my observations over the years, the number of people who can truly stick to this is not that high.

Of course, I understand this, as I also had a speculative mindset during my first two years in this space and fell for various market temptations.

However, this situation has its pros and cons. Depending on one's position, the perspective may differ. For example, it may be very difficult for someone with only a few tens of thousands of dollars to patiently dollar-cost average into Bitcoin over a four-year cycle, as this does not align with their expectations of opportunities in the crypto market. On the other hand, those who can do this may face limitations in their thinking and strategies, causing them to miss out on new opportunities.

There are some things I deliberately choose to miss, so I do not envy those so-called perpetual profit masters or MemeCoin lottery winners. I view such matters with indifference. I believe that many things do not inherently have a right or wrong; what suits you best may be the right choice.

Recently, the crypto market has clearly started to heat up again, and many people are asking me to recommend some MemeCoins that can make them rich. However, I cannot directly recommend any. What I can do is share some insights based on methodology through Talking About Li and the Outside.

Your wallet is your own, especially since you are in a highly risky field. When you open your wallet, what you hope for is that others can help you fill it, but in reality, many just want to scam your principal.

Aside from some highly skilled traders, for most ordinary retail investors, if you want to make money in a bull market, you should always focus on your own goals and avoid blindly chasing short-term trends. Remember, things that rise quickly can also fall quickly.

Of course, different people have different positions. If you identify as a long-term investor, please try to avoid market noise. If you identify as someone looking to profit from short-term trading, then work on improving your ability to gather and organize information, actively seeking out market hype points while being careful not to confuse hype with actual value.

Hype can lead to rapid price increases, but sustained growth can only come from underlying actual value. Many people love to chase low-market-cap projects, but you need to ask yourself: for example, in the case of DEXs, what advantages do those low-market-cap DEX projects have compared to established unicorns? This will determine whether you are engaging in speculative trading or value investing.

The core of successful speculative trading lies in entering early to seize greater opportunities, as later entrants will take over your position. Entering early often requires your own knowledge accumulation, understanding, and research efforts to uncover potential opportunities, which cannot be achieved simply by asking others.

Moreover, compared to traditional finance, the crypto market changes very quickly. Many so-called historical experiences may not be entirely accurate today. Each cycle has its own way of performing, and past bull market successes may not serve as reliable models for current bull market strategies. While maintaining the basic overarching strategy, we also need to learn to adapt and continuously supplement and refine our knowledge and theoretical frameworks.

I record over 10,000 words of thoughts or notes weekly using Notion, primarily to stay close to the market and better understand it, thereby refining my knowledge and theoretical framework and enhancing my patience and focus. Additionally, choosing to share some of this content through public platforms can be seen as a form of knowledge closure. I believe that only knowledge that is both input and output can create effective positive feedback and accumulation.

In summary, as a market that changes rapidly 24/7, we need to continuously understand and analyze the market while closely monitoring the flow of funds. Investment is not a one-time event; we should not only take advantage of the current bull market but also make the most of each cycle, becoming friends with time, maintaining focus, thoughtfulness, and patience.

At the end of the article, let's talk about safety issues.

Today, I found that many partners are discussing the theft of DEXX, reportedly involving stolen assets in the hundreds of millions of dollars, with many users suffering heavy losses. One theory is that the project team was involved in the theft (it is rumored that the DEXX project team is based in Hangzhou, China), while another theory suggests that the server storing user private keys was hacked. Some even discovered that DEXX private keys were transmitted in plaintext, as shown in the image below.

I have used this tool a few times and authorized a small wallet for data queries. Honestly, the data listed is quite comprehensive. If we disregard the trading function, it can be considered a decent on-chain data query tool. Many KOLs have frequently promoted this tool, and it is indeed unfortunate that a theft has occurred. For those still using this tool's app, I recommend uninstalling it promptly. If you have ever saved a mnemonic phrase or private key on your phone (or if you have copied and pasted a mnemonic phrase), please check your wallet immediately. For safety's sake, transfer any assets you can to a new wallet.

For such on-chain tools, my personal habit is to view them through the web version. I generally do not download such apps and will only authorize small wallets or test wallets. A small wallet typically holds a bit of assets (usually tens to thousands of dollars) for daily interaction and gas fees, while a test wallet is usually empty, mainly used for accessing and authorizing some on-chain tool websites for data queries. Additionally, I currently use three iPhones, two of which are dedicated to "cold wallet" purposes, and one is for crypto use, but it only has a few essential apps like Binance, OKX, and Trust installed.

These are my personal usage habits for your reference. In this field, there are mainly two ways to lose money: one is buying a certain coin and losing money, and the other is losing your money (through theft or scams). If you lose money on a coin, you can still vent your frustrations at the project team, but if your wallet is stolen or you are scammed, you can only reflect silently.

In fact, the topic of security has been addressed many times in previous articles by Talking About Li and the Outside, and we have also extensively reminded readers of safety precautions in our "Talking About Li and the Outside Toolbox." As shown in the image below.

(Source: https://senlonlee.notion.site/39ad9a606d1640319ba98f05c4f9c69f)

In summary, we must always manage our risks and emotions well, finding the wealth accumulation methods that suit us best. We are fortunate to have the opportunity to enter this field, which is a blessing for many. The road ahead for this industry is still long, and there are many new opportunities waiting for us to discover. Do not let yourself get lost in the darkness before dawn.

Today is Saturday, so let's leave it at that. Wishing everyone a pleasant weekend.

Note: The above content is merely personal opinions and analyses for learning and communication purposes and does not constitute any investment advice. Any projects or websites mentioned in the article have no direct financial relationship with Talking About Li and the Outside (Talking About Li and the Outside does not accept advertisements from any project parties). Please assess the safety of the corresponding projects or websites on your own. Investment always carries risks; do not enter situations you do not understand, and do not play in situations you cannot afford to lose.