Welcome to the World of Crypto

Hello! If you're standing at the threshold of the crypto market, you've likely felt a mix of excitement, confusion, and anticipation about the opportunities it presents. Perhaps you've heard stories of individuals who "changed their lives" by investing in Bitcoin, Ethereum, or even memecoins like Shiba Inu. These narratives might be what brought you here!

But hold on a moment, do you truly understand your role in the crypto market? Are you aware that each group of market participants has distinct goals, motivations, and approaches? By identifying yourself, you'll gain clarity on your needs, where to begin, and how to avoid unnecessary risks.

Let's embark on this journey from zero to one together in this article!

"A journey of a thousand miles begins with a single step."

Who Are You? Defining Your Crypto Identity

Before you dive headfirst into the crypto market, pause and ask yourself: "Who am I in this market? What is my motivation for starting?" Your motivation will guide your journey in the volatile world of crypto. Clearly understanding your goals and true motivations will provide clarity, prevent blind actions, stop you from chasing the crowd, and help you avoid getting swept up in risky price surges.

• Are you driven by a desire for quick wealth? Is your motivation fueled by stories of people who made millions overnight through crypto?
• Are you fascinated by blockchain technology and the transformative change it could bring to the world? Do you wish to participate in and contribute to the development of this technology?
• Do you aspire to financial freedom, seeking a long-term investment solution to build stability for your future and family?
• Or are you simply curious, wanting to explore and understand the world of decentralized finance, learning and accumulating knowledge?

If you don't fit perfectly into any of these categories, that's perfectly fine! These are just prominent examples to help you start self-identifying. If you desire all of these, even better! You already know your needs, and together, we can find ways to address them.

So, why is the question "Who are you?" important? The answer will determine your path in the crypto market. There's no right or wrong answer—what's crucial is knowing which group you belong to. From there, we can establish a plan, goals, and strategies tailored to you.

Crypto is not a place to jump into haphazardly; it's a market that demands understanding, patience, and a clear strategy. Crypto is not just an opportunity; it's also a challenge. Ask yourself, to discover "who am I in this market."

Why Are You Here? Unpacking Your Motivations

Be honest with yourself. Why do you want to step into the crypto market?

"I Want to Get Rich Quick"

One of the biggest reasons people are attracted to crypto is its potential for high returns in a short period. For many, especially the younger generation, crypto is not just an investment opportunity but a shortcut to wealth, particularly after witnessing spectacular success stories.

According to Statista (2023), as many as 78% of crypto users enter the market with the desire to achieve high profits. This isn't just happening in developed countries but is also very common in developing nations like Nigeria, where 32% of the population uses crypto as a primary investment vehicle.

A 2022 Finder survey revealed that 21% of Vietnamese participated in the crypto market, a notable figure in Southeast Asia. Vietnamese youth are increasingly keen on blockchain technology and new opportunities, eager not to miss out on major market shifts.

A classic example is Erik Finman—the teenager who invested $1,000 in Bitcoin in 2011 when he was just 12 years old. By 2020, Finman's assets had surpassed $4 million due to Bitcoin's price explosion, making him one of the youngest millionaires from crypto. Finman once shared: "Bitcoin changed my life. It's one of the biggest opportunities any young person can seize."

"I Want Financial Freedom" and Early Retirement

Many individuals enter crypto not just for immediate profits but for the aspiration of financial freedom. They desire to earn money without the traditional 9-to-5 office job, and crypto seems to offer that opportunity.

According to a 2023 Gemini survey, 45% of crypto participants aimed to achieve financial freedom and break free from traditional employment. Among them, over 60% were office workers and freelancers.

Data: De.FiYield-generating opportunities in DeFi attract investors seeking stable and long-term profit sources. 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 consistent returns from his held assets. Brandon shared: "I haven't had to work full-time since stepping into crypto. Passive income from DeFi has allowed me to escape the traditional work cycle, giving me financial freedom and time to pursue other passions."

"I Am a Professional Investor"

Experienced investors from traditional financial markets like stocks and real estate are gradually moving into crypto to diversify their portfolios.

Bitcoin, often seen as "digital gold," has become a crucial tool for investors to protect their assets against inflation. With a limited supply of only 21 million coins, Bitcoin cannot be "printed" like fiat currency, making it a hedge against inflation and currency devaluation.

Fidelity (2023) reported that over 60% of traditional financial investors have added Bitcoin or Ethereum to their portfolios. They view these asset types as a means to diversify risk and preserve asset value during challenging economic times.

Paul Tudor Jones, one of the world's most renowned investors, has added Bitcoin to his portfolio to counter inflation. He commented: "Bitcoin is an excellent hedge against the devaluation of traditional currencies. I believe it will play a crucial role in the future of finance." Paul Tudor Jones is not alone. Elon Musk and many other major investors have also publicly held Bitcoin as part of their asset allocation strategies.

Learn more: Is Bitcoin the perfect solution for inflation?

Photo: CNBCPaul Tudor Jones emphasizes in a CNBC interview his desire to add Bitcoin to his personal investment portfolio.

Opportunity for Traders - "I'm Here for the Charts"

In the crypto market, intense price volatility creates golden opportunities for traders—those who seek short-term profits rather than long-term gains. With its 24/7 operational nature, the crypto market differs entirely from traditional markets like stocks. This allows traders to capitalize on continuous fluctuations to optimize profits, day or night.

According to a Binance survey (2023), over 40% of crypto users are professional or short-term traders. Platforms like Binance Futures have become hubs where many traders leverage derivatives and leverage to maximize profits from strong price swings. This demonstrates that opportunities are abundant for those with the right skills.

"I'm Here for the Tech"

Beyond financial factors, many people enter the crypto market simply out of a passion for technology. They see the potential of blockchain technology to revolutionize various sectors such as finance, art, and even entertainment.

According to DappRadar (2023), the number of users participating in crypto applications has grown over 60% in the past year, with over 3 million daily active wallets on platforms like Ethereum, BNB Chain, and Solana.

Beeple, a digital artist, caused a sensation when his NFT artwork sold for $69 million in 2021. This was one of the biggest milestones in digital art, ushering in 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 technology enthusiasts, crypto is not just an investment—it's a technological playground, an experimental environment for creative ideas and groundbreaking innovations.

Where Should You Start?

If you are completely new and lack extensive knowledge of the crypto market, the first thing you should NOT do is pour money into trending coins without understanding them. While it might seem appealing, the crypto market offers not only profit potential but also significant risks if you are unprepared. Even experienced professionals often fall into these "traps."

If you're not entirely new—perhaps you have a few months of experience, or you've been a successful trader in traditional markets—no matter who you are, when stepping into a new field:

Invest in Knowledge – The Safest Investment

The crypto market experiences extremely high volatility, and those without fundamental knowledge often fall prey to short-term trends and lose money. Even seasoned professionals can still fall into these "traps."

The most crucial step before entering the market is to learn and acquire foundational knowledge. This is an indispensable step, regardless of which group of participants you identify with among those we've discussed.

• Learn about blockchain technology: Understanding how the underlying technology of crypto works will give you a long-term perspective and help you accurately assess project potential.
• Understand different cryptocurrencies: Know the distinctions between Bitcoin, Ethereum, and millions of other altcoins. Each has its own use case, features, and objectives.
• Market analysis: Learn how to read price charts, grasp market cycles, and understand the factors that influence cryptocurrency values.

Investing—regardless of the market, be it stocks, real estate, or crypto—requires time, effort, and capital. Just as you need knowledge, experience, and practical understanding.

Remember: Investing in knowledge is the safest investment.

Coin98 Insights' Learn section provides comprehensive knowledge for beginners entering the Crypto market. Start exploring Crypto knowledge here:Access Crypto Library

Learn to Manage Emotions and Avoid FOMO

Greed and emotions will inevitably lead to poor investment decisions. To succeed in crypto, you need to learn to control your emotions. One of the biggest mistakes is being swayed by FOMO (Fear of Missing Out). People see others making money from crypto and rush in, hoping to "get rich overnight." However, this can lead to misguided decisions, such as "buying the top" of a coin or investing all assets into an unstable coin.

Don't let FOMO or greed overwhelm your rationality. Short-term volatility can be highly tempting, but true success lies in building a long-term, sustainable strategy. Cultivate a patient mindset. Crypto is a new market, and successful investors often have a long-term vision, knowing when to patiently wait for the right opportunities.

Always remember: Don't rush into the market just to make quick money.

Read more: What is FOMO? 4 ways to overcome FOMO in crypto.

Risk Management is Mandatory

Risk management is vital for any investor, especially in the crypto market—where price fluctuations can be severe and unexpected. Unlike traditional stock markets, crypto has no limited price fluctuation range, meaning prices can surge or plummet in very short periods. This creates opportunities but also carries significant risk of loss if risk management is not properly applied.

The golden rule is to never invest more money than you can afford to lose. Because the crypto market is highly volatile, losing your entire capital overnight is entirely possible. Ensure that your investment is a small portion of your total assets, and if lost, it will not severely impact your financial life. Manage risk by diversifying your investment portfolio. Never put all your money into a single coin, no matter how much you believe in it.

Don't Fall into "Pump and Dump" Scams

The crypto market is rife with misleading advice, false information, and scams designed to lure in newcomers. Scammers often exploit the greed of inexperienced individuals, leading them to invest in high-risk projects without truly understanding them.

Do not follow all unverified advice. When someone tells you to buy a coin, research it thoroughly yourself before making a decision. If you can't determine why you should buy, then you shouldn't do anything at all! Build a solid foundation of knowledge. If you truly understand the market, the concept of a "pump and dump" scam will never be in your vocabulary. You will confidently make calculated investment decisions.

Crypto is not an easy market, nor has it ever been easy, and it will certainly not become "easy" in the future. But with a sufficiently solid knowledge base and patience, you can absolutely seize opportunities to build your financial future.

‍