There is only one fundamental reason: people are inclined to seek benefits and avoid harm. Yet, the laws of the world are to seek harm and avoid benefits.
Those who violate the rules of nature will naturally not earn the money that follows the operation of these rules.
Assuming you believe that BTC can reach $200,000 by 2029, and it is currently $64,000, you can earn +212%. Doubling in three years isn't bad, right?
However, if you do not understand the rules of the world, excluding luck, you still won't make a profit in the long run.
Today, I can elaborate on the logic of nature. Ultimately, making money in cryptocurrency involves refining human nature.
For example, the cryptocurrency market is currently bearish, and many people are afraid to buy because they fear further declines or want to buy at the bottom. In reality, this is simply fear and greed.
At this point, they are fearful and dare not face their fear directly to buy. When the cryptocurrency market has risen significantly, if they buy then, it is merely catching the falling knife, or they might complain about earning too little and seek other avenues, ultimately losing everything. This is the path determined by avoiding harm and seeking profit.
There are others whose hearts are also filled with fear, but they dare to buy more as prices drop because they are prepared to buy without selling. They do not have greedy desires but bear the desire of fear. They choose the path of avoiding profit and embracing harm, standing on the side of the natural order. They will definitely make money.
There are also some people who, seeing BTC drop, feel greedy and loudly proclaim that they can sell their houses and cars to invest in cryptocurrencies for a chance to profit. At this time, they are envious and greedy because they have seen through the market's fear. With their experience and superior understanding, they believe they can earn money. In reality, they cannot earn anything because they are typically seeking profit while avoiding harm. They feel the price is cheap and want to buy more. Their actions may seem similar to the above-mentioned people, but they are greedy and profit-seeking. They might even leverage their position, but ultimately, they will exit early and still not make a profit.
For example, in a bull market when the market is rising, many people dare to buy, but still, most people end up losing money.
I can also elaborate on the logic behind this.
For instance, as the bull market arrives and the cryptocurrency market rises every day, many people can't help but try to make a profit. The typical outcome is either dying from leverage, getting washed out, being trapped, or ultimately taking the fall. They are playing this market from the opposite side of the natural order. To fulfill their greedy desires, they will inevitably lose.
There are also some people who, when they see the price of cryptocurrencies rise and money is being made, feel scared inside, but they dare to buy and face the risks. They know that the higher the price goes, the greater the risk. They see the risks while watching their accounts rise daily. They are scared but choose to hold on, avoiding harm and seeking profit, enduring this extreme fear of retracement. In the end, they will endure the pain of selling, preferring not to earn the money that continues to rise afterward. They are avoiding harm and seeking profit, going against their inner desires, and they will definitely make money.
There are also some people who see rising prices as commonplace, like regular investors. They are not looking to cash out at high prices; they are simply buying. When they see prices rising, they feel anxious because the chips they can buy are actually fewer. They endure their discomfort and continue to buy. Such people are typical of avoiding harm and seeking profit, and they are able to make money.
For example, there are some people who are not regular investors; they are purely right-side traders. When they see the price starting to rise, they feel pain. They think they are earning much less, but the market is more stable. They endure the pain and buy in, and as the price continues to rise, the higher it goes, the more they suppress their greed and face their fear. In the end, such people can benefit from a smooth landing.
The ultimate difference lies in your choice between greed and fear. If your heart prefers rising prices, then you should buy when prices fall. If your heart likes falling prices, then you should buy when prices rise. Avoiding harm and seeking profit means that as long as you experience a kind of painful resistance to human nature during the process, you will find it easier to make money. However, if you feel too comfortable during the process, then you are doomed to suffer significant losses.
In the cryptocurrency market, many people will teach you various techniques and strategies, but in reality, they are useless. Everyone's fear and greed are different. How can you teach? So-called enlightenment is about understanding what you fear and what greed means, ultimately facing fear and rejecting greed. At that point, you will start making money.
In simple terms, all investment and profit-making wisdom can be summed up in one sentence: avoid harm and seek profit. But it is essential to clarify which is profit and which is harm.
Those who do not understand much when they first enter the cryptocurrency market might think they are avoiding harm and seeking profit, when in reality, they are avoiding profit and seeking harm. Meanwhile, others who are avoiding harm and seeking profit become their leverage, enabling them alone to succeed. When they have made a lot of money and start to understand the market, clearly beginning to avoid harm and seek profit, they end up losing it all.
This is what you call luck.