29 Sept 2025
The vast majority of participants in the crypto industry experience financial losses, largely due to common misconceptions and an overreliance on speculative, high-risk trading. Building sustainable wealth requires a diversified approach, integrating advanced investment tools and a deep understanding of market dynamics beyond simple active trading.
99% of people in the crypto industry ultimately lose money, a consequence of prevalent misconceptions and ineffective investment strategies.
Most retail investors enter crypto seeking life-changing returns (10x, 20x, or 30x) through active futures trading with high leverage or by purchasing highly speculative, often unprofitable, 'shitcoins'.
The speaker personally achieved a 20x return in 2021, converting $80,000 into $1.6 million, emphasizing that this success was not solely from pure active trading.
Achieving extreme gains, such as turning $100 into $3 million in months, through active trading is statistically and mathematically impossible, contrary to the claims of 'forex trading gurus'.
The market is flat or characterized by unpredictable noise 80% of the time, making consistent profitability from active trading, including relying on technical analysis, highly improbable.
Professional hedge funds, including the speaker's, allocate only approximately 2% of their capital to active trading, reserving it for the 20% of the time when the market demonstrates significant volatility.
During prolonged market consolidations or downturns, smart investors employ a range of strategies, including long-term investments, passive income tools, over-the-counter (OTC) deals, and early-stage investments.
This low-risk passive income strategy involves farming funding rates using inverse futures, capable of generating 12-15% annual returns in stable periods and potentially over 100% during market peaks, without requiring market prediction or holding volatile assets.
OTC deals involve purchasing project coins at substantial discounts (30-60%) from their market price, often with a 3-6 month lockup period, which provides a significant advantage over retail purchases.
Capital is strategically allocated to promising projects in sectors like L1, L2, DeFi, RWA, and AI at an early stage, before their public launch, leveraging a robust professional network for access; while some projects may fail, others yield explosive returns.
Building long-term, replicable generational wealth in the industry requires a comprehensive system of diverse tools, utilized correctly at opportune times, rather than solely relying on technical analysis and speculative trading.
An upcoming online event on May 7th and 8th will further discuss these effective tools and proper implementation strategies for followers interested in transforming their understanding of the industry.
The only way of building generational wealth is a combination of tools and the understanding of when to use what.
| Strategy | Description | Key_Benefit | Risk_or_Condition |
|---|---|---|---|
| Retail Active Trading | Trading futures with high leverage or buying speculative 'shitcoins' based on perceived massive returns (10x-30x). | Perceived potential for quick, life-changing money. | 99% loss rate; statistically impossible for consistent extreme gains; unprofitable during 80% flat market. |
| Hedge Fund Active Trading | Allocating a small portion (approx. 2%) of capital to active trading. | Capitalizes on market volatility when conditions are favorable (20% of the time). | Limited capital allocation; requires precise timing and specific market conditions. |
| Long-Term Investments | Accumulating proper assets during market downturns when other investors are fearful. | Safest approach for wealth building over time, despite short-term volatility. | Requires patience; capital is tied up for extended periods. |
| Funding Rate Arbitrage | Farming funding rates using inverse futures, distinct from regular arbitrage. | Low-risk passive income (12-100% annually); no market prediction or asset holding risk. | Requires understanding of inverse futures; primary risk is exchange failure. |
| Over-the-Counter (OTC) Deals | Purchasing promising project coins at significant discounts (30-60%) from market price. | Substantial price advantage over retail; higher potential returns. | Requires strong network access; typically includes a 3-6 month lockup period; inherent project quality risk. |
| Early Stage Investments | Investing in promising L1, L2, DeFi, RWA, or AI projects before their public launch. | Potential for explosive returns on successful projects. | Requires strong network access; some projects will result in capital loss. |
