Where is the future of "cryptocurrency investors"?

"Deduced several possible paths for the future of people with digital currencies." I guess what this reader wants to express may be that the holder of digital currency may have any way to deal with the currency in the future.

Because in the domestic environment, the liquidity of the digital currency 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 investment. If there is a large amount of funds, we can allocate some assets with good liquidity, such as the stock market.

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

The stock market's returns may not be as good as cryptocurrencies, but liquidity is much better, so it is a good liquidity reservoir.

After arranging this part of the funds, we will use the spare funds that may not be used in 3 to 5 years to invest in cryptocurrencies. Why can't cryptocurrency be lost? 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 my country is unable to make its transactions compliant in the short term, in the long run, I think it is very likely that this step will eventually be taken in 5 years.

Why is it 5 years later? Because institutional investors in 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 regulatory agencies will gradually find a set of feasible regulatory solutions. And five years will be enough for European and American regulatory agencies to explore a set of feasible solutions. At that time, our country can make good use of the existing experience of the West to introduce its own policies. In response to this trend, this door will eventually be opened.

According to some readers' questions recently, let me talk about two points that should be paid attention to when investing in cryptocurrency:

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 USD stable currency. It is not controlled by any institution and therefore has the highest security.

Next, choose USDC. This stablecoin is strictly regulated by US regulatory agencies, and its mortgaged USD assets are strictly censored, so the security is also high. However, "the success is also the failure, the failure is the failure", precisely because USDC is strictly regulated by the US government, the US government can also strictly restrict the circulation of USDC. Some time ago, the U.S. government blocked certain USDC accounts on the grounds of "suspicion of illegal transactions," making these accounts unable to buy or sell USDC.

For our commonly used USDT, I suggest that everyone should be cautious. We can use it as a trading medium, but it is best not to hold it for a long time, because USDT has been troubled by various opaque information for a long time, and will be affected by U.S. supervision in the future. It may go wrong.

After we have selected the stable currency, we can exchange the currency in the hand for a stable currency at the high point of the bull market, and then start the scheduled investment at the low point of the bear market to buy back our optimistic currency in installments with stable currency.

1. The currency we invest in should be considered in the long-term as far as possible, considering its fundamentals, and considering its long-term investment value.

Needless to say, currencies such as Bitcoin and Ethereum need to be treated as long-term investment products for a long time.

We should also look at currencies in other fields from the perspective of long-term investment to reduce speculation. So how to reduce speculative mentality? I think the most important thing is: remember not to catch up in the bull market, but to lay ambush in the bear market. Especially in the bear market, we can not only see the real value of a project, but also take advantage of this opportunity to calmly choose our optimistic varieties and make arrangements in advance.

Investing in cryptocurrency is a big test for many investors in an environment like ours. Although we are facing such an unfavorable environment in the short term, I believe that in the long run, it must be the brightest and most promising field. Since there is fate, don't give up this field easily.