DeFAI: The Rise of Trading Agents

Author: Defi0xJeff, Head of Steak Studio
Compiled by: zhouzhou, BlockBeats

Editor’s Note: Luck is not random; it is a skill acquired through preparation, perseverance, and reflection. Jeff reflects on his investment mistakes and growth process, how he learned and adjusted his strategies, drawing lessons from failures, and ultimately finding his investment direction. The article reminds readers that the cryptocurrency market is full of volatility, and success relies on continuous effort, adaptation, and courage, not just luck.

The following is the original content (reorganized for better readability):

Fifteen years ago, when I was playing Dota, there was a YouTube series called "Luck is Not an Excuse." In the show, players defeated their opponents through precise positioning and execution to achieve victory.

I tried to replicate those moments but failed. Was it because I wasn't lucky enough, or because I didn't put in enough effort? In other words, I needed to become stronger.

The same logic applies in the cryptocurrency space. You see others making life-changing wealth from cryptocurrencies and think, "Why can't I do that?" This feeling drives you to act—buying TRUMP, chasing VINE, searching for the next hot coin, participating in the narrative.

Of course, if you understand how the market works, you might indeed get lucky. But if you don’t, you might end up worse off than when you started.

I got into cryptocurrency at the end of 2021—right at the peak of the bull market. My first investment was in CAKE, attracted by its 70-100% annualized returns, only to lose 30% within a week as CAKE plummeted. At that time, I didn’t understand and thought it was a bad asset.

Then I discovered TIME Wonderland, drawn in by its 50,000% annualized return and the famous calculator: "Invest 1,000, and it will turn into 1M in a year through staking and compounding. If everyone stakes, we all win, (3,3) mechanism." The outcome is well known.

I lost money and learned the lesson of "issuance." A few months later, I learned about the importance of teams in Web3 projects through Solidly. Eventually, I found my direction in the issuance project on Pinksale Finance, profiting from it, and invested in Bybit's Launchpad projects, then earned 140% annualized returns on Abracadabra. Three months later, I made a mistake.

I put most of my funds into the Terra ecosystem's Lockdrop and LBA projects, locking up UST to maximize token yields. Unfortunately, the de-pegging of UST and the collapse of Terra Luna caused me to lose all my funds. In despair, I tried to recover my losses by shorting LUNA, only to get liquidated during a rebound. Ultimately, I fell from nearly six figures to 500 dollars.

But this experience led me to a job at @TheSpartanGroup as a project advisor. Later, I started this account to write about DeFi. In early 2023, I discovered @CamelotDEX and other Arbitrum DeFi projects, analyzing and sharing my insights with the community, which caused my Twitter account to explode.

From 2023 to 2024, I drifted in the market, sometimes lacking motivation. DeFi innovation slowed, L1/L2/L3 became fragmented, and life changed.

Until August 2024, a conversation with @vtes369 and the @ChasmNetwork team prompted me to delve into AI. With no formal AI background, I began learning about retail-focused AI companions and agents, eventually finding @virtualsio. In a call with @everythingempt0, he explained the vision of Virtuals tokenizing AI agents, and I had an epiphany, reminiscent of the feeling I had when discovering @pendlefi in 2023.

Just as Pendle tokenizes yield, Virtuals aims to tokenize AI agents, which could be a multi-billion dollar market. The team's creativity convinced me of their vision. I invested in VIRTUAL when its market cap was 30M. After the platform launched, my investment thesis was validated. I became deeply involved, writing articles about AI agents and building a supportive community.

This is not bragging; I have a long way to go. The point is: in cryptocurrency, you must learn from mistakes, adapt, and continuously improve. Resilience is key. The market will rise, fall, or consolidate; interest may wane, but you must keep participating, keep learning, and support others. If you persist long enough, luck will be on your side.

Lessons I learned in cryptocurrency:

1. Do your own research.

2. Form your own opinions and theories.

3. Reflect on your mistakes.

4. Participate in the market daily.

My Daily Routine:

1. Check @cookiedotfun, @Decentralisedco, and @GoatIndexAI for trends.

2. Follow curated Twitter timelines in the AI space.

3. Write content daily to solidify my thoughts and share with others.

Those who turned 500 dollars into millions are not just lucky; they have spent countless hours in the trenches of cryptocurrency, enduring failures, perseverance, and tests of resilience.

Many see these successes and think it comes easily, but that is not the case. The truth is: luck is a skill. It is gained through preparation, consistency, and the courage to persist in adversity.

Cryptocurrency, like life, is a marathon, not a sprint. You may fall, you may hit rock bottom, but the only real failure is stopping trying.

The market is not over. Alpha still exists, waiting to be discovered. The best time to invest is when everything is at a low, and the streets are filled with panic. At that time, opportunities are hidden in plain sight—just waiting for those brave enough to uncover them.

Success is accumulated through years of effort, reflection, and continuous growth. So, keep going, keep learning, and continue to believe. Your lucky breakthrough is not just waiting; it is the effort you put in today that paves the way for it.