FMG founder: 10 years of experience in encryptionSecondary Market

Written by EO Hao

Hello everyone, I am the founder of FMG. Today, Bitcoin broke through the $100,000 mark. I would like to share with you the core principles of the bull market after experiencing several cycles.

1. Emotional Value

In the market, the most important asset is the emotional value you give to yourself. Keep yourself full of energy and strength, sleep well, exercise well, have a good mood, only compare with yourself, ride on the back of the bull.

2. Recognize right from wrong

Since 2023, the market has already risen 6 times from the bottom. If you are still struggling with fundamentals, unlocking quantity, FDV data, instead of entering the market with humility and embracing risks, you will completely miss this opportunity.

Three, Sad Fact: Volatility drop

Due to the crowding of get on board in the gamma scalping strategy of robot trading, the wave amplitude of BTC in this round has been greatly reduced. Everyone knows how to grab the chips and understands shorting. Profit protection should be withdrawn, waiting for another opportunity. In this game, it is indeed not as profitable as before.

This is why MEME has risen, the market needs more volatility. We also believe that the reversal of odds will come, and various zones will erupt. Then the cycle will also end and rest.

4. The Use of Leverage

Leverage (contract, margin) has a short time frame, while off-exchange leverage can be used for the long term, just like MSTR traders.

5. Use the combination of big dump and big pump in Bull Market.

We need a combination of strategy and risk control discipline to accomplish this. We build a portfolio in the following way: core assets + growth assets + cash position + speculative assets.

Hold on to the first two, don't touch them. If you can't resist, move the last small Position, speculative asset.

6. Understand the risk-return ratio and reduce anxiety.

Core assets are stable returns, growth assets are moderate to high risk returns, and speculative assets are extremely high risk returns.

If your fren says, "I bought a project that rose 5 times", don't worry, he just bought a low-quality speculative asset. Let me explain why.

Seven, core assets: limited downside, about double upside

Core assets, are assets recognized by the finance departments of some countries, listed companies, and Financial Institutions. Even newbies who are not too expert know that this thing is good, and it can be judged just by trying, the only one name. Your goal is to accumulate more and more core assets in the market.

Don't have high expectations for core assets, don't fixate on whether it's 200,000 or 500,000. Just hold on until the market sentiment goes crazy and sell. Accept the price at that moment.

8. Growth assets: 4-6 times, Yao Ming in the crowd.

Growth assets are not recognized by the country, but some Hedging funds, CEX and Defi support them, they have greater Liquidity.

Duan Yongping once mentioned a game, how to find Yao Ming in a crowd? Most people see a 1.9-meter ordinary person from a distance and think he is Yao Ming, but it is actually very simple. When Yao Ming enters the venue, the restaurant is definitely sensational.

Growth assets often fall within the cognitive abilities of the public and do not require technical understanding. They are things that people outside the circle can name besides BTC. Ethereum, Solana, Doge, BNB are like Yao Ming among the crowd. If there is something very novel whose potential increase is not as good as theirs, or only slightly higher, but the Liquidity is far inferior to theirs, it is not as good as holding growth assets, so it is recommended to skip.

In a volatile market, growth assets often bring 4-6 times or even higher returns, and are relatively stable.

9. Speculative assets: It is necessary to pursue returns of more than 10 times.

Speculative assets belong to professional players.

YC's Startup Bible says that you need to provide a user experience that is 10 times better. For speculative assets, you need to create a return on investment that is 10 times higher to justify the risk you take.

So when your fren shows off how much he has earned, you should see if this is not a speculative venture.

PNUT 30 days pump more than 10 times

10. What is a successful speculation?

I describe the three characteristics of speculative assets, which can be 10 or even 100 times only with these.

The first category, the dark horse that always gets stronger.

The top 50 in terms of Market Cap often go through many cycles of hardships, and it is not easy to achieve this Market Cap. A fast horse cannot achieve such a large increase in a short period of time, but if you can squeeze into the top 50, hold on tight. Network effect, the strong get stronger.

The second type is a new species.

The new species is something we have never seen before. For example, in the previous cycle, AXS actually allowed Filipinos to earn money by playing games? And this time, AI Meme, a conversational robot, can actually become a digital asset? We need to have funds like reconnaissance soldiers to layout and learn from them. Enter a position first and then learn.

The third category, niche and undervalued.

Because it's so niche and underrated, it's low when squatting and high when jumping.

So, underestimating the dark horse is often as rare as pearls.

When everyone is busy speculating on hot topics, they forget about them. One piece of Favourable Information can drive the entire niche market, and small Market Caps can easily go To The Moon. For example, POL, CRV, HNT, etc.

Summary

In general, speculative assets are difficult. We invest and hold them with profit protection, and leave the rest to fate and time. Those who stare at the absolute monthly return every day will definitely not do well in this area.

I think the investor who can squeeze profits from BTC and growth asset investments to persist in doing this is a responsible, disciplined investor who systematically pursues Alpha and manages money. FMG is such an investor.