Why can't most people make money in the cryptocurrency industry? 1. Emotional interference leads to investment failure Human weakness: The volatility of the cryptocurrency market is extremely high, and drastic price fluctuations can easily trigger fear or greed. These emotions can lead investors to deviate from rational decisions, such as buying at high levels, selling at low levels, or frequent trading leading to accumulated losses. Example: Ordinary people often enter the bull market at high points due to the emotional impulse of "everyone else has made a profit", or exit the market at low points due to panic. This emotional behavior goes against market rules and is destined to be difficult to profit from. Solution: Successful investors (such as regular investors and quantitative traders) eliminate emotional interference through strict discipline and planning. For example, people who invest in Bitcoin regularly only buy it, unaffected by price fluctuations, and have a high probability of making profits after holding it for a long period of time. 2. The difficulty of fixed investment: the "slow" resistance to emotions Fixed investment may seem simple, but it is actually extremely difficult: it requires investors to continue investing during market downturns, even in the face of book losses. This contradicts the tendency of human nature to pursue immediate satisfaction. Emotional bias: Many people tend to buy too much when prices are high (greed), and not dare to buy when prices are low (fear), and even sell at a small profit, disrupting the long-term logic of fixed investment. Ordinary people are more suitable for regular investment: People with ordinary qualifications are actually more likely to stick to regular investment because they are less affected by complex market analysis and focus on simple rules. Smart people are often influenced by emotional fluctuations due to excessive analysis or confidence. 3. Several modes and similarities of making money in the cryptocurrency industry There are several ways to make money in the cryptocurrency industry, such as trading, long-term coin trading, contracts, online marketing, and becoming a KOL. Successful individuals using these methods all have one thing in common - eliminating emotional interference: Trader: Has a clear buying and selling plan, strictly implements take profit and stop loss, and does not change strategy due to market fluctuations. Crypto hoarders: Only buy Bitcoin, hold it for a long time (more than 2 cycles), and do not care about short-term fluctuations or market opinion. Contract players: Fixed positions, strict stop loss and take profit, calmly adjust strategies after losses, do not chase orders or increase leverage. Haircatcher: Continuously participate in airdrops without giving up due to short-term no return. KOL: Focusing on rebates or customer losses, not changing behavior due to moral pressure or market sentiment. The success of these people does not lie in their superb skills, but in their ability to restrain their emotions and follow established rules. 4. The essence of emotional management Emotional increase leads to entropy change: Emotional decision-making can cause behavior to spiral out of control, increase uncertainty (entropy), and undermine investment effectiveness. Successful individuals use methods such as meditation and meditation to lighten their emotions and maintain rationality. The particularity of the cryptocurrency circle: asymmetric information and frequent public opinion noise (such as KOL promotion and project parties cutting leeks) make it easier to amplify emotional interference. If ordinary investors do not learn to 'wash their emotions', it is difficult to adhere to the correct strategy. Long term perspective: People who truly make big money often go through multiple market cycles (bull bear transitions) and learn emotional management under the guidance of experienced players. This requires time and practice, and it is difficult for ordinary people to achieve it overnight. Why can't most people make money? Overall, the reasons why most people cannot make money in the cryptocurrency industry can be attributed to the following points: Lack of discipline: Without a clear plan, it is easy to be led by market sentiment and chase after gains and losses. Emotional decision-making: driven by emotions such as FOMO, panic, and greed, deviating from rational investment logic. Short term thinking: Pursuing quick money, unable to tolerate the "slow" nature of fixed investment or the floating losses of long-term holding. Information overload: The cryptocurrency market is filled with noise (rumors, speculation), making it difficult for ordinary people to distinguish between truth and falsehood, and easily misled. Lack of experience: Not experiencing a complete market cycle, lacking a profound understanding of market laws. How to make money in the cryptocurrency industry? Ordinary people who want to make money in the cryptocurrency industry can try the following methods: Fixed investment in Bitcoin: Choose a simple strategy, buy Bitcoin regularly, hold it for a long time (at least 2-3 market cycles, about 8-12 years), and not be affected by short-term fluctuations. Establish rules: Set clear take profit and stop loss points for both trading and contracts, and strictly enforce them. Emotion management: Reduce the interference of emotions on decision-making by recording investment logs and other methods. Learning cycle pattern: Learn from experienced veterans who have experienced bull and bear markets, understand market cyclicality, and avoid blindly following trends. Avoid complex operations: Ordinary people should not easily try high leverage contracts or short-term speculation, as the risk is extremely high. 7. Real data support The historical performance of Bitcoin: According to historical data, since its inception in 2009, long-term holders (holding for more than 4 years) of Bitcoin have almost entirely profited. For example, buying at the high point in 2017 (about $20000), even after experiencing the bear market low point in 2018 (about $3000), can still be profitable by 2025 (current price is about $90000). Retail loss rate: According to statistics, about 70% -80% of retail traders in the cryptocurrency market suffer long-term losses, mainly due to frequent trading and emotional operations. summarize Most people cannot make money in the cryptocurrency industry because they cannot overcome emotional interference, which leads to distorted investment behavior. Successful investors maximize the elimination of emotional influences through discipline, planning, and a long-term perspective.