GuShiio.com The so-called “leverage” can be capital, technology, brand, network effects, or even team management.
Author:Route 2 FI
Compiled by: Shenchao TechFlow
(Original picture comes from Route 2 FI, compiled by Shenzhen TechFlow)
If you invest X hours, you will earn Y amount and produce Z quantities of products or services.
It sounds simple, but it’s the linear way most people think about the world.
But is this really the right way of thinking?
If you learn to use the power of time and leverage, you will experience the miracle of compound interest. The effect of compound interest is that the results of your efforts will be superimposed layer upon layer.
To give a simple example, the result of 10 + 10 + 10 + 10 + 10 + 10 + 10 + 10 is 90, which is very intuitive.
But if I asked you to calculate that an investment would grow at a 10% annual interest rate over 40 years, most people would probably think that you only need to add 10% 40 times, which makes a total of 400%.
However, the actual answer is far more than 400%.
The answer is: 4,525%.
This means that an investment of $100,000 will become $4,525,000 after 40 years.
I know this may be boring for the cryptocurrency world, but please keep listening to me.
(Original picture comes from Route 2 FI, compiled by Shenzhen TechFlow)
The above example demonstrates the power of compound interest.
I won’t delve into the mathematical details, but just want to use it to illustrate the importance of exponential thinking.
How to use leverage to take life further
Many people’s views on life are too realistic, and they always view their growth path with linear thinking. But in fact, the power of leverage can move you from linear growth to exponential growth.
The so-called leverage can be capital, technology, brand, network effects, or even team management.
If you are good at using these resources, you can break through the limitations of linear growth.
In life, you should dare to take risks and choose a career path that uses leverage and compound interest. For example, a traditional job that is nine-to-five and has no equity incentives often has limited room for growth.
Instead, you can try starting your own business, or join a start-up team and find a role where you can develop flexibly. This will not only promote your career growth, but you will also receive equity incentives and apply the skills you learn to your future entrepreneurship.
In today’s day and age, I don’t think there is any better way to make the most of leverage than to build a personal brand. I did this myself, and when I look back on my experience, I am extremely proud of what I have created.
People read my content because I wrote the ideas myself.
If you want to learn about investment, cryptocurrencies and the latest revenue opportunities, you would rather learn from those who are actually involved than from a college professor.
In everything you do, learn to use leverage and take a long-term view of how your knowledge, skills and mentality can compound interest through exponential growth.
Zoom in on your pattern. Those who believe they can change the world will eventually do it.
About risk-taking and asymmetric investing
Once you have met your basic needs, you should dare to take greater risks. I very much agree with the FIRE (Financial Independence, Early Retirement) concept. Its calculation formula is: monthly expenses x 12 months x 25.
This number means that you can live by the 4% rule, which means you withdraw 4% of your portfolio every year without running out of principal (assuming a 10% annual growth rate).
However, if you are young and don’t have too much financial burden, I think it’s worth the risk even if you don’t save a lot of money.
Ask yourself:What is the worst outcome? In most cases, the worst-case scenario is just going back to square one.And if you take risks, you may expand your existing resources 10 times. This applies not only to money, but also to skills and opportunities.
Target those asymmetric investment opportunities! Asymmetric investing is a high-return, low-risk option: if you succeed, your return may be 10 times or even 100 times, but even if you fail, the loss will be small.
Conversely, options with huge risks but limited rewards should be avoided as much as possible.
In life planning, prioritize long-term gains (which can take years or even decades to realize) over short-term gains (such as the temporary comfort of a monthly salary). Of course, survival is the foundation, but just being satisfied with the status quo can limit your potential.
Many people have become content with the status quo because of stable jobs and increased salary, and gradually lose the motivation to pursue greater profits.
They are worried about the risks of trying new opportunities and feel that they may lose a lot if they fail. But in fact, the vast majority of people, especially in well-resourced environments, can return to their original job or similar position even if they fail, with little difference in salary.
So, the real question is: What kind of life do you want?
You may have heard this famous saying:
“Give me six hours to cut down a tree, and I’ll use the first four hours to sharpen the ax.& rdquo;
The significance of this sentence is that when you are faced with major choices or decide the direction of your future work, preparation and planning are crucial.
If you are still confused and don’t know what to focus on in the future or what to prioritize next year, you might as well spend a few days in a quiet environment thinking seriously and formulating a detailed action plan instead of blindly following the trend.
As said in “Alice in Wonderland”:“If you don’t know where you’re going, it doesn’t matter which way you take. rdquo;
So, spend more time thinking about the goals you really want in life. Believe in yourself, most people have the ability to create something beautiful if they are willing to act.
In today’s era of social media, Short Video (such as Reels and TikTok) convey many ideas about how to improve their lives, but few people actually put them into practice.
Many people did nothing after watching these videos. Although you may feel like you are learning, it’s not fundamentally different from watching a TV drama–it’s just a short-term dopamine stimulation.
Ask yourself if you are really working hard for your long-term growth? Or are most of your activities just for short-term pleasure (such as food, entertainment, sports, Short Video, music, socializing, games, and even alcohol and other stimulations)?
There is nothing wrong with these activities in themselves, but don’t let them occupy your entire life. After all, you are a human, not a monkey. Humans can delay gratification (think of the famous marshmallow experiment), but monkeys cannot.
Here are some examples of activities that can bring long-term satisfaction：
-
learning a new language
-
Start a company or small business
-
Challenge Marathon
-
get a degree
-
Live abroad for some time
-
write a book
-
Learn new skills that can change your career
-
Start investing and financial management
-
fitness weight loss
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build their own brands
These are choices that can take you to a higher level in life, not just short-term happiness.
Here are some suggestions for people who are new to cryptocurrencies and have limited funds
First, ask yourself:What are you good at?Perhaps the most important ability in this industry is persistence. Even if you are not smart, if you are willing to spend 12-14 hours a day focusing on learning and practice, I can say that you already have an advantage over most people. For people with insufficient funds, time is your most valuable asset.
In addition, you also need to have the willingness to learn and the determination to continuously improve yourself. So the question arises, where should you start?
There are many opportunities in the cryptocurrency space, such as writing, trading on a centralized exchange (CEX), research projects, participating in memecoin trading, NFT investing, looking for airdrop opportunities, making YouTube videos, writing newsletters, operating the Telegram community, and even doing podcasts.
If you enjoy writing (as I do), you can choose Twitter, Newsletter or Telegram as your platform. If you are better at verbal expression, then YouTube and podcasts may be better for you. If you are number-sensitive and like to watch market movements, focus on improving your trading skills and try to interact with the traders you admire on Twitter. You may be surprised to find that there are many good traders who only have 500- 2,000 fans, and they are not necessarily the ones who are famous names such as Hsaka, ENAS or Nachi.
When you find your advantage, ask yourself: Are my skills good enough to earn me an income? rdquo;
If it’s not enough now, consider looking for internship opportunities. These internships can be working in a cryptocurrency company, start-up, venture capital firm, or family office; they can be assisting industry opinion leaders (KOLs) with some matters or even helping traders you admire complete tasks. If you perform well, they may share some industry insider information (commonly known as alpha information) with you. Although internships are usually not very rewarding, their value lies in helping you accumulate experience and wisdom to lay the foundation for the future.
If your skills are strong enough, you can choose two options: cash in on your own, or apply for a job at a cryptocurrency company.
Self-realization is a long and difficult road that requires great investment and perseverance. But if you believe in your abilities and potential, this path may be worth it, because in the long run, its benefits may far exceed ordinary jobs.
Applying for a job at a cryptocurrency company is a relatively safe choice. You can get a fixed salary (usually higher than a traditional nine-to-five job) while still focusing on your own projects in your spare time. Although it may take less time than starting a full-time business, a stable income can give you more peace of mind to develop a sideline business.
Here’s a tip: Many people may feel that the bull market is here and I have to concentrate on trading and have no time to apply for a job. quo; But in fact,It is easier to find a job during the bull market. If you have limited funds on hand, why focus all your energy on high-risk transactions? Instead of taking risks, it is better to take advantage of the bull market to find a stable job while accumulating experience and capital for the future.
If the price of $SOL triples from now, your $1,000 will become $3,000. This money may be what you can earn in a week or a month of work (assuming an entry-level position). Most people will not be the memecoin winner who turns $1,000 into $1,000,000. If you really have this ability, you probably won’t need to think about work at all and won’t be reading this article here.
Apply for a job:If you plan to apply for a job in the crypto industry, choose a company you respect and hope to be paid in the form of equity or tokens. If you have confidence in this company and financial conditions permit, you can try to ask for more wages to be paid in tokens. If the company ultimately succeeds, it could bring you huge benefits.
About Twitter:In the crypto industry, one of the best ways to connect with the top people is to increase your visibility on Twitter. You can write down topics you are interested in, content you want to study in depth, and even light and humorous tweets; at the same time, interact with people you admire. Keep tweeting every day, even if it’s just a simple gm (Good Morning).
Take the initiative to send private messages to others to provide advice without asking for anything in return. This is a good way to build friendship. Maybe you will have opportunities to cooperate in the future. Stay friendly and helpful, and insist on showing up every day.
It can be said that Twitter is the resume of the encryption industry. You don’t need LinkedIn, and if you want to apply for a job, your best resume is the content you create on Twitter.
What’s more, many recruiters proactively seek out people with strong influence on Twitter and offer opportunities such as partnerships, paid content, referral links, funded trading accounts, etc. As your influence increases, you may even get the opportunity to participate in angel investing or KOL financing rounds.
About cooperation and payment content:As long as you can publicly disclose the partnership, there is nothing wrong with participating in paid content. However, there are also some worrying phenomena in the current market. For example, some people only share a contract address (CA) of memecoin and then claim that this is an opportunity to pick up leaks or must-buy. I suggest that it is best to share such information only in private circles rather than publicly release it.
About transactions:Trading may be the most difficult path to enter the crypto industry, but if you are good enough and have your own advantages, it may also be the most rewarding way. The important thing is that you need to find your own trading method rather than blindly following traditional trading rules.
For example, a top trader on CT (Crypto Twitter) once stated that he had never used TradingView. This shows that relying too much on indicators or drawing some trend lines that do not exist may not be effective.
There are many inefficiencies in the crypto market that smart traders can take advantage of. For example, in March 2022, when Andre Cronje announced on Twitter that he would focus on areas other than DeFi, the prices of tokens such as $FTM and $YFI didn’t start to react until 10-15 minutes later. This is unimaginable in the stock market, where news is usually reflected in stock prices within seconds.
As the crypto industry matures, markets will become more efficient and transactions will become more difficult. Therefore, it is particularly important to cultivate the following qualities: probability thinking, common sense, self-awareness, resilience, patience, and the ability to delay gratification. In addition, obsessive-compulsive personality or mild autistic traits may not be a disadvantage in trading.
Finally, remember that markets are cyclical. Usually only 20% of the time is in the trend and 80% of the time is volatile. This is important to understand because trend trading and volatility trading require completely different strategies.
If you feel like you are one step ahead of the deal, then I have bad news for you: You may just be in Group F.
(Original picture comes from Route 2 FI, compiled by Shenzhen TechFlow)
Don’t expect anyone to hold your hand and help you when trading. We often talk about how to make money, but in fact, the essence of a transaction is that you take money from others.
For example, when you go long on $BTC and make a profit, it means that another trader short $BTC loses money. Trading is a player-to-player (PvP) game, and behind each victory is another person’s failure.
On Twitter, Discord or Telegram, you may receive many trading suggestions. But stop and ask yourself: Why are they sharing this information? Do they really mean well, or do they want you to enter because you are afraid of missing out (FOMO) and become their successor?
Especially since the market value (mcap) of contemporary coins is small, you need to be vigilant about these suggestions because price fluctuations are more easily manipulated.
Learning and Growth:If you want to become a better trader, you can learn from the top people in the industry. For example, Cobie’s article on probability thinking is a good starting point: Probable Thinking.
Why is it worthwhile to be the top person in a certain field?
Finding your ultimate goal will not only make you feel fulfilling, but it will also bring huge rewards. Thinking back on the days when I worked 50-60 hours a week in a corporate company, I used to be very tired of daily life. At first, I thought it was because of the long hours, but then I realized that what really hurt me was that I couldn’t devote my time to things that had a real impact on my life.
Now, every hour I invest in Route2FI will eventually pay off in some form. The outcome may be positive or negative, but no matter what, the gains and losses are mine.
This autonomy keeps me motivated because no one but myself can make this project a success story. If I give up, my efforts will be in vain.
Becoming in the top 10% of people in a certain field is actually not difficult, it just takes enough time and effort. But if you want to be in the top 1-2%, you need to work smarter.
This is something I have been trying to improve. Sometimes I think that if I could outsource more work or reduce the time I spend writing tweets and newsletters, I might expand faster.
But I still enjoy the process. At this stage, my goal is no longer to squeeze the most money out of the market. I do this because it makes me feel satisfied. Writing is something I love, and I will stick to it and I don’t plan on outsourcing it to others.
Life is long, so don’t make it easy. Whether it’s a career, partner or friend, work hard for what you really want. If you want luck to come to you, you need to proactively create conditions. Interestingly, when you work hard, good luck often comes quietly.
Stop for a few seconds and ask yourself:
“What kind of life do I want? rdquo;
Chances are your answer is something you don’t currently have, or something you feel missing today. So, ask yourself another question:
“How much effort have I put into these goals? How much time have I invested?& rdquo;
If you want to create a successful CT (Crypto Twitter) account but haven’t started because the competition is fierce, you need to rethink your way of thinking. The reason most people delay action, or never even start, is because they don’t set small goals.
They always think of the distant end and conclude that it is impossible and give up without even trying.
Learn specific knowledge
Naval once said that to be successful, you need to have specific knowledge. This knowledge is a unique skill or insight that only you can have. A simple way to build this specific knowledge is to build your own personal brand.
As I mentioned before, people read my articles because I wrote them. If we posted the same text to an unknown Twitter account, we might not get a lot of attention. This is not because the content is not good, but because the account does not have enough fan base. However, if you can continue to publish content every week for years, eventually the right audience will find you.
One of my greatest strengths is perseverance. I know I am not the best writer. I also learned that if I spent more time polishing the article, such as optimizing the language, making better charts, or soliciting feedback from others before publishing, the content might be better. But rather than pursuing perfection, I prefer to release decisively when 80% is completed.
For me, this“quick action”The way I can continue to produce is the only reason I can continue to produce. Looking back, I have written hundreds of articles, which makes me very proud. If I pursue perfection too much, I may only achieve one-tenth of what I am now.
To master specific knowledge, you need to have the courage to express your unique ideas. Even if these opinions seem weird, don’t be afraid to share them. There will always be people who appreciate your unique style. Learn to define yourself by your strengths rather than focusing too much on your weaknesses. Imagine how good you would be if you could focus on your strengths!
In fact, you can completely become the top 1% in a certain field. Instead of spending a lot of time improving skills you’re not good at, such as increasing your sales skills from 45% to 50%(just an assumption), focus on what you are naturally good at. To become a top talent, focusing on your talents is the key.
Also, strive to achieve a state of financial freedom so that you can make decisions based on your interests and values, rather than being forced to compromise due to financial pressures.
I believe that the best jobs are driven by intrinsic motivation. When you love something from the bottom of your heart, work itself is a pleasure. Of course, you can also find some inner motivation in ordinary jobs, but most people may choose to leave soon if they lack salary support.
A simple test to determine whether you are doing something truly meaningful is to ask yourself:“If money wasn’t an issue, what would I choose to do? rdquo;
Alan Watts discussed this issue in a video that inspired me 10 years ago.
You can click on the link to watch:
Alan Watts: What If Money Was No Object?
If you are not passionate about your job, it will be difficult to achieve outstanding results in it.
More importantly, doing a job you don’t like often makes it difficult for you to feel satisfied with life. No matter what career you pursue, do your best. Especially in the early stages of your career, or in your 20s to 30s, be brave, take risks, and open up more possibilities for your life.
Try to connect with people who are very good in their field. For me, I have met many of these people through Twitter and have been lucky to meet and communicate with them in real life. I have benefited a lot from their vision and experience.
Think about it, the friends around you may rarely have as deep an interest in a certain topic as you. But on the Internet, like Twitter, there are thousands of people who share your passion for certain areas and are willing to delve into those seemingly endless rabbit holes.
Find these like-minded people and connect with them. Let them be your friends and companions.
Trust me, this effort is worth it and will bring great value to your growth and vision.
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