Article by: Deep Tide TechFlow
Before the halving, the market experienced an unexpected crash. Bitcoin briefly fell to the 60,000 mark, while altcoins suffered even greater damage. Many people once again lamented the volatility of the cryptocurrency market, and feelings of short-term frustration and disappointment began to brew.
Long and spot players suffered actual and nominal losses, and it should have been a time for the bears to rejoice. However, GCR, a well-known legendary trader in the crypto community, posted on social media to encourage and warm the hearts of every injured investor:
[GCR’s post images]
GSR also stated that he had already “retired” from social media and that the purpose of his post was to prevent his fellow traders from being eliminated in the future despite the bright prospects. He clearly cares about the well-being of investors.
Clearly, the injured investors who were hit hard by the crash found solace and emotional value in GCR’s post. The post has received over 40,000 likes on Twitter and has spread widely. At the same time, there are also many newcomers to the crypto community who are puzzled by the popularity of this post, asking who GCR is.
The consensus in the crypto market is quite interesting. Not all chicken soup is worth drinking, but investors trust the chicken soup of legendary figures who have keen judgment and have made significant profits in the market.
If you are also unfamiliar with GCR, here is a brief introduction. GCR is one of the most famous traders in the cryptocurrency market. He is named after his verified top trading performance and many successful predictions on the collapsed exchange FTX. From 2021 to 2022, he frequently appeared on FTX’s top trader rankings and outperformed many other market participants, becoming one of the most profitable traders on the exchange.
Although his identity is still unknown, he claims to have started from scratch and accumulated wealth solely through trading. Looking back at GCR’s experience over the past three years, you will find that his insights into the market are extraordinary.
In the second half of 2021, GCR predicted the bear market and started trading in the opposite direction, opposing the mainstream sentiment when everyone was optimistic, and firmly shorting altcoins. In July, GCR predicted in a Telegram message:
[GCR’s Telegram message images]
During the cryptocurrency frenzy in 2021, with zoo coins flying around and meme coins rampant, GCR’s position was not complicated; it was simply contrary to the “general market narrative.”
However, what truly made GCR famous was his bet against LUNA’s collapse. On March 14, 2022, GCR publicly bet $10 million with Luna founder Do Kwon (who had not yet joined the company) that the price of Luna would be lower than the current price within a year and took a short position with actual action. Do Kwon took up the bet, and the funds for the bet were held in another whale Cobie’s account. As everyone knows, UST decoupled, LUNA entered a death spiral, and the stablecoin eventually fell into the abyss. Two months later, GCR revealed that the bet had yielded a profit of $2.3 million.
Being right once may be luck, but consecutive successes undoubtedly involve profound logic. At the end of 2022, GCR issued a warning that with the development of the bear market in 2022, hackers and scammers from bad actors and project teams would increase… Therefore, he would firmly short some tokens in the bear market. Subsequently, in November, the bankruptcy of FTX, which shook the crypto community, occurred, plunging the market into a deep bear market. SBF and others indeed engaged in fraud.
GCR’s top ten cryptocurrency investment advice:
1. Should I be a Holder or a Trader?
I continue to hold a large amount of BTC + ETH spot positions because I believe we bottomed out in November and remain optimistic about the future. My goal is to reach 10k ETH by 2030. In fact, 90% of people would be better off being a Holder. Note that this advice only applies to Degen traders who speculate on altcoins.
2. The biggest advantage of memes is “never deliver.”
Ironically, for DOGE, the most optimistic path is for Twitter to never truly integrate it into anything. It is a target for Musk to mock, hint, ridicule, puzzle, and joke about. As long as there is an overall plan that allows people’s imagination to run wild, we call it Hoskinson; never deliver.
3. The truthfulness of crypto news is not important; the duration of its influence is.
When news affects prices, market participants often focus on whether it is true or not. Many times, the truthfulness of the headline is not important. The market’s reaction to the news and its duration are more meaningful.
4. Early fast, late slow.
We observe the general trading principles when meme tokens rise: in the altcoin cycle, you should increase your consideration of risk when the trend reverses for the first time and gradually protect your capital over time. People fail because they do the exact opposite; they slow down during early investments and become increasingly greedy over time.
5. Bet on Ponzi schemes when the macro environment is good.
For ordinary people, the cost of flying to Macau or Las Vegas is too high. When we are making money easily and the macroeconomic environment is in line with risk, decentralized casinos and/or Ponzi schemes are always the fastest horses.
6. Trade new, not old, based on intrinsic logic.
New tokens are full of hope, lack holders, and the teams are still not wealthy, so there is motivation to speculate.
7. Consider profits.
Try to imagine Ponzi schemes as professional boxers fighting for prizes rather than tokens. In a boxing match, the winner gets the prize, and the loser gets nothing. But people often make this decision: when one investment performs well, they sell it (cut their winners), and when another investment performs poorly, they continue to invest (add to their losers) instead of seeking professional help to deal with the emotional problems that may arise from financial losses.
8. Wealth is realized only when it is truly converted.
I previously made some recommendations, and some people made a lot of money from them. Then you received news of someone else making a lot of money. However, wealth is only realized when it is truly converted. When trading volume exceeds market capitalization, it often means that the price increase has reached its final stage.
9. The worst token design and the best market performance are not contradictory.
Some of the best-performing tokens will have the worst tokenomics and come from the most predatory teams. Many teams that launched during the peak of the bear market have been anxiously waiting for better conditions so that they can use their tricks and engage in market manipulation.
10. The lower the unit price, the more aggressive the trading.
No matter how many times people have seen it, they still underestimate the gravitational pull of the “low unit bias” on retail investors. This is the most attractive thing in the cryptocurrency world. Just think, why would a mentally sound person buy 100 units of a higher-priced coin when they could have owned 1 million units of a lower-priced coin?
Finally, reviewing the old and learning the new, the success of top traders may be difficult to replicate, but their perspectives can guide everyone to navigate the crypto world more cautiously.
[GCR’s latest tweet link]
[@0x_Lens summarizes GCR’s core crypto investment insights]
This article is authorized to be reproduced from Deep Tide TechFlow.
Related article: “GCR’s 30 Trading Insights”
