Confessions of a "Landing Old Leek" in the Cryptocurrency Circle: How to Outperform BTC and Steadily Achieve A8

Editor's Note: This article shares the author's experience of achieving eight-digit wealth through cryptocurrency and aiming for a nine-digit goal. The core is to design a long-term compounding investment portfolio, emphasizing discipline, patience and realistic expectations. The author continues to outperform Bitcoin while protecting downside risks by holding Bitcoin, borrowing funds for short-term trading, cyclical ace investments and angel investments. The key to success is to focus on the circle of competence, avoid chasing short-term profits, and enjoy the investment process, and ultimately achieve steady wealth growth.

The following is the original content (the original content has been reorganized for easier reading and understanding):

What is the best thing that cryptocurrency can give you?

= Life-changing returns

What is the ugliest thing that cryptocurrency can take away? = All the money you've ever made I know why you're here, and it's the same reason I am: = Make money. Life-changing money. We know it's possible because we've all heard of the success stories. But let's be honest, you've also heard of the people who lost everything in crypto and never made it back. So the real question is: what separates the two?

What is the real formula for success? How to stop “losing everything”?

That’s exactly what I’m going to break down in detail in this article.

As you know, the total market capitalization of cryptocurrencies has been growing. I believe it will continue to grow and may even reach $100 trillion one day.

· The global stock market is currently $126 trillion,

· The global bond market is $140 trillion,

· The real estate market is about $400 trillion,

· And cryptocurrencies are only $3.5 trillion.

Bitcoin (BTC) is already the top five assets in the world by market capitalization, and it doesn’t surprise me at all that it may become the number one asset in the future. In the next 24 months, I believe Bitcoin will surpass Microsoft, Nvidia, and Apple to become the world's second largest asset.

But the sad thing is: if the market continues to grow and you are still losing money, there must be something wrong. Maybe your approach is wrong, maybe your strategy or skills need to be improved.

In any case, something needs to change.

The most important change, and what most people get wrong, is expectations. They see someone else making 50x or 100x returns and jump in to chase the same gains.

I’ve seen so many people like this. Some even make tons of money for a while, feel invincible, and then lose it all the next time. Why? Because they never built a system, lacked discipline, and didn’t set truly reasonable goals.

I reached eight figures not because I was a genius, but because I set realistic expectations. Before I got into crypto, I had been trading stocks for over a decade. My goal was simple: to achieve a 40% compound annual growth rate (CAGR). Seven years of compounding would have made my money 10x. I did it and I was so proud.

I know that hearing a 40% annual return sounds like failure to most crypto traders, but at the time, it was top-notch. Warren Buffett, the greatest investor of all time, has averaged a compound annual growth rate of just 19.8% since he took over Berkshire Hathaway in 1965.

19.8% made him a legend. Sounds low, right?

But can you keep returning 19.8% every year for 60 years straight? Through wars, market crashes, recessions and chaos?

That's real power! Not the huge returns that come and go, but the quiet, boring returns that consistently beat the market.

In the stock market, how do you know if your returns are good?

= Consistently outperforming the market.

What about in cryptocurrencies?

= Consistently outperforming Bitcoin's performance.

You might ask, why do you want to outperform Bitcoin? Because if you can't do that, what's the point of investing in other currencies? Just buy Bitcoin and lie flat.

As a reminder, Bitcoin is up over 10x in the last five years. How many people do you know who lost money in that time? A lot. If they just bought and held Bitcoin, the return would be 1000%.

About outperforming Bitcoin, for example:

· If Bitcoin performs +30% this year and you make +40%, you are excellent.

· If Bitcoin is down -25% this year and you only lose -15%, you are still excellent.

To measure this, you need at least 5-10 years of performance to judge whether you are good or not. So, like I said before, this is a long-term game.

This is a game of patience, a game of snowballing.

So, forget the question of "how to do 100x quickly". The real question is: how to consistently outperform Bitcoin and never go back to zero?

The answer is portfolio design.

· Design to last;

· Design to compound;

· Design to protect downside risks while capturing upside opportunities.

Even if you lose, there is still a great chance of winning in the long run. This is my philosophy for building and designing portfolios.

Okay, now let's talk about how to actually outperform Bitcoin.

First, make sure your portfolio is 100% in Bitcoin. That way, you've matched Bitcoin's long-term performance by default.

Then, I'll borrow, and never borrow more than 50% of my Bitcoin holdings. Borrowing annualized interest rates are usually around 5%. I will do several things with this money:

Short-term trading, 3 months at most

I only touch projects with strong fundamentals and easy to achieve 2-3x returns, usually projects that fall in a bear market but still have solid products. I usually exit at 50%-100% profit.

For example, if you have followed me: $ETH, $PENGU, $ANIME, $COOKIE, $KAITO, and some that I don’t make public: $HYPE, $RAY, $JUP, $SUI.

I actively accumulate in bear markets and sell after making 50%-100% profit. In bull markets, when all coins hit record highs, I usually stop trading.

$KAITO and $HYPE are my key projects in this cycle. But when they fall, I sometimes add more positions to make short-term operations.

Cycle Ace, single-cycle high-conviction investment, up to 12 months

This really makes me happy. I currently allocate a maximum of 10% of my funds, but before I reached eight figures, I allocated nearly 20%. Early success stories were $UNI and $CAKE, and I didn’t name this strategy "Cycle Ace" at the time. Last year I participated in the TGE (token generation event) of $HYPE and achieved a 10x return in one month. Now I am holding $KAITO, which has doubled and is still strong.

Cycle Ace has two conditions: "screening" and "timing".

The screening criteria are fast-growing high-quality founders, strong communities, products that are actually used by people, and that are still in the early stages of development.

In terms of timing, I only start looking in the first year after the Bitcoin halving, and exit after a maximum of two years. This rule has not changed at present, but there may be adjustments in the future.

Angel investment, up to 24 months

The only reason I created this X account is to get better angel investment opportunities. So far, the results are good. Through the introduction of friends I know, I have contacted excellent project parties.

I have now supported more than 15 projects. I know this is high risk and high return, but these funds come from lending income, so there is nothing to lose for me. I have indeed invested in a few bad projects, but the overall return is still good.

With these three strategies, if I make money, I will use the proceeds to repay the loan and unlock my Bitcoin. This way I am only playing with profits. If the profit is big enough, I will buy more when Bitcoin falls and repeat the cycle.

What if my trading and cycle trump cards perform poorly? First, your combination is not dead, Bitcoin is still supporting you. If Bitcoin continues to grow, you can borrow more funds to continue playing.

Your portfolio will only fail if: you borrow 50% of your Bitcoin, all your operations go to zero, and Bitcoin plummets by 50%. You have to be very unlucky and make every wrong move to encounter this combination.

This is all I do. I don't play small-cap meme coins, I don't trade NFTs, and I don't play perpetual contracts because I'm not good at them. I tried to learn, but found that it's not my field. If you are good at it, you can borrow Bitcoin funds to do what you are good at. Focus on your own circle of competence, everyone has different skills.

The most important thing for me is: I love my life. The way I design my portfolio ensures that I can sleep well, enjoy every day, do what I like, and never feel stressed about investing.

Even when I started my Web3 journey in 2017, the goal was never to get rich quickly, but to accumulate wealth slowly but surely while enjoying the process.

In 2017, I decided to achieve a $100 million fortune by 2030. Not by luck, not by gambling, but by building a bulletproof system that compounds over time. I feel like I'm on track, which is why I'm sharing everything here. You don't need to copy 100%, just choose the parts that fit your risks, life, and goals.

I'm not sharing this because I think I'm awesome. I'm still learning and trying every day to keep up with this rapidly changing industry. Hopefully you'll learn something from this post and find useful tips to make your portfolio perform better.