Core Insights - The cryptocurrency market is highly volatile, resembling a roller coaster, with the potential for significant wealth gains or losses overnight [1] - Understanding market trends and underlying logic is more important than following the crowd [1] Group 1: Market Trends - Bitcoin's dominance can indicate the flow of market funds between mainstream and niche currencies [4] - Monitoring macroeconomic indicators, such as Federal Reserve interest rate actions, is crucial as they directly affect market liquidity [4] - On-chain data, including inflow and outflow volumes on exchanges and whale address activities, provides insights into market sentiment [4] Group 2: Market Volatility - The cryptocurrency market is characterized by sharp price fluctuations, often triggered by high leverage leading to cascading liquidations during downturns [6] - Major positive developments, such as Bitcoin ETF approvals or legalizations of cryptocurrencies, typically drive price surges [6] - Extreme market greed often signals a potential peak, while widespread despair may indicate a rebound opportunity [6] Group 3: Investment Strategies - Ordinary investors are advised not to invest all their funds or use leverage, and to consider dollar-cost averaging to mitigate risks [8] - It is essential to invest only in projects that are well understood, including their technical background and team [8] - Maintaining caution during market exuberance and rationality during fear requires strong self-discipline, which is fundamental for long-term survival [8]