What is the future of “cryptocurrency investors”?

A few days ago, a reader left a message and mentioned the following question:

“Plot several possible paths for people who own digital currency in the future.” I guess what this reader wants to express is what ways digital currency holders may be able to deal with the coins in their hands in the future.

Because the domestic environment is not yet relaxed, the liquidity of digital currency as an asset in the country may not be very good in the future.

So first of all, we must pay attention to the allocation of investment products. We must diversify our investments. If you have large amounts of capital, you can allocate some assets with good liquidity, such as the stock market .

I am optimistic about the A-share market in the next 1-3 years. I have always believed that the A-share market will usher in an unprecedented bull market. Interested investors can use the fixed investment method to directly invest in the simplest index funds, such as the CSI 300 Index.

The returns from the stock market may not be as good as those from cryptocurrencies, but the liquidity is much better, so it is a good reservoir of liquidity.

After arranging this part of the funds, we will use the remaining idle funds that may not be used in 3 to 5 years to invest in cryptocurrencies. Why can't we lose cryptocurrencies? Because I always believe that this is a brand new field, and its future growth space will be greater than all other investment products.

Although our country cannot make its transactions compliant in the short term, in the long run, I believe that in five years, it is very likely that this step will be taken.

Why five years from now? Because institutional investors from the United States and Europe are already entering this field in large numbers. The entry of institutional investors will bring about earth-shaking changes in this field, which is an irreversible trend in the world.

In this process, European and American regulators will gradually explore a feasible regulatory solution. Five years will be enough for European and American regulators to explore a feasible solution. By then, my country can make good use of the existing experience of the West to launch its own policies and respond to this trend, which will eventually open this door.

Based on some recent questions from readers, I would like to share two points to note when investing in cryptocurrencies :

1. When we need to use stablecoins, we can choose stablecoins with higher security. Here I recommend DAI first, and USDC second.

DAI is a completely decentralized US dollar stablecoin. It is not controlled by any institution and is therefore the most secure.

The second choice is USDC. This stablecoin is strictly regulated by US regulators, and its collateralized US dollar assets are strictly reviewed, so it is also very secure. However, "Success or failure depends on Xiao He", because USDC is strictly regulated by the US government, the US government can also strictly restrict the circulation of USDC. Some time ago, the US government blocked certain USDC accounts on the grounds of "suspected illegal transactions", making these accounts unable to buy or sell USDC.

Regarding the USDT that we commonly use, I suggest that everyone should be cautious. We can use it as a medium of transaction, but it is best not to hold it for a long time, because USDT has long been troubled by various opaque information, and it may have problems in the future due to the influence of US supervision.

Once we have chosen the stablecoin, we can exchange the coins in our hands for stablecoins at the peak of the bull market, and then start fixed investment at the low point of the bear market and use stablecoins to buy back the currencies we are optimistic about in installments and batches.

2. We should try to consider the currency we invest in from a long-term perspective, considering its fundamentals and its long-term investment value.

It goes without saying that we should treat currencies like Bitcoin and Ethereum as long-term investments.

We should also look at other fields of currency from the perspective of long-term investment and reduce speculative mentality. So how to reduce speculative mentality? I think the most important thing is: remember not to chase high in the bull market, but to ambush and lay out in the bear market. Especially in the bear market, we can see the true value of a project, and we can also use this opportunity to calmly choose the varieties we are optimistic about and lay out in advance.

Investing in cryptocurrency in my country is a big challenge for many investors. Although we are facing various unfavorable environments in the short term, I believe that in the long run, it must be the brightest and most promising field. Since there is a destiny, don't give up this field easily.