People with traditional investment backgrounds often suffer losses when entering the crypto space. The game rules here are completely different.

What is the crypto world playing for? Simply put, it’s about price. Price leads, everything else comes later.

Hash rate? Miners only start mining when the price rises. Liquidity? Trading only happens when the price goes up. Valuation systems? They only make sense after the price has increased. The fundamentals, application prospects, technological innovation that are talked about—seemingly logical and well-founded—are actually all built on the fragile rope of liquidity. As soon as liquidity dries up, this entire logic collapses immediately.

Bull markets are like this: Price rises → attracts attention → various narratives follow → developers, capital, and users flood in → liquidity is abundant → prices continue to rise → "See, fundamentals are indeed improving" → more people chase in. A positive feedback loop, spinning faster and faster.

And bear markets? The opposite: Price drops → confidence wavers → smart money runs first → liquidity dries up → stories no one believes anymore → fundamentals data start to look bad → prices continue to fall → more people cut losses. A negative feedback loop, heading downward all the way.

So, there’s really nothing hidden in the crypto world; everything is determined by price. Those trying to analyze with fundamentals or value investing—old methods—will suffer big losses here. The survival rule is simple: follow the trend, go with the market. Be optimistic when prices rise, short when they fall. Don’t try to bottom-fish or top-sell, and don’t look for undervalued targets. Anyone who has gone through several cycles understands this principle.