Original title: A Guide To Exponential Thinking In Crypto: Leverage, Asymmetric Bets, And Personal Growth
Original author: Route 2 FI ( @Route2FI )
Compiled by: Asher ( @Asher_0210 )
Editors Note: This article discusses how to break linear thinking in the field of cryptocurrency, use leverage and compound interest to achieve exponential growth, build personal brands, and achieve long-term wealth and success in the crypto industry by continuously improving proprietary knowledge and taking risks. It also emphasizes how to accumulate results through patience, innovation and strategy in this emerging industry, and obtain huge returns with the help of the characteristics of the crypto market.
The following is the original content (for easier reading and understanding, the original content has been reorganized):
Many people habitually think that they can earn Y amount of money and produce Z amount of products/services by investing X hours. In other words, their thinking is linear, thinking that every bit of effort and time invested will bring corresponding returns. However, is this way of thinking correct? In fact, purely linear thinking does not take into account an important factor - leverage and compound interest.
When you introduce the concepts of leverage and time, returns are no longer simple additions, but compounding. The principle of compounding is that the results are not just based on the effort and resources you put in, but they continue to increase over time, forming exponential growth. If you simply add 10 + 10 + 10 + 10 ... together, you get 90. But if you calculate the growth of a 10% annual interest rate after 40 years, many people may mistakenly think that this is 400%, that is, 10% plus 10% ... 40 times, but the answer is not so.
The real answer for compound interest is: 4,525%. This means that if you invest $100,000 in an asset and maintain a 10% annual return, after 40 years, the investment will have grown to $ 4,525,000 . This growth is a direct result of compound interest, and it is not linear, but exponentially amplified over time. Even for the cryptocurrency world, this may seem conservative, but it is enough to illustrate the power of compound interest.
Through this example, we can see that real wealth growth is not achieved through short-term linear thinking, but through continuous leverage and compound interest accumulation. In cryptocurrency investment and other financial fields, mastering the power of compound interest can achieve considerable wealth appreciation in the long run.
Use leverage to get ahead in your own life
Most people view life too realistically, often viewing their efforts and rewards as a linear relationship. However, true success often relies on the use of leverage, which can help you break through linear growth and move towards exponential growth. Leverage comes in many forms, such as capital, technology, brand, network effects, and managing other people. By using these levers properly, you can get a step ahead in your life and career and break through traditional limitations.
When choosing a career, you should prioritize areas where you can apply leverage and realize compound interest. A typical 9-to-5 job, without equity incentives, will hardly earn returns beyond a certain limit. Choosing to start a business, join an entrepreneurial team, or find a position that offers a flexible role will give you more opportunities to grow while accumulating sustainable wealth and influence. In these environments, you can learn valuable skills that can be applied to future careers or starting your own business.
Personal branding is one of the best ways to leverage your business in the modern world. I have personally been through this process and have been amazed at the results I have created. Through personal branding, you are able to share your thoughts, opinions, and experiences and attract people with similar interests and goals. Through content creation, you can not only demonstrate your knowledge, but also leave a lasting impression on others. Practical experience and practice are the most valuable, rather than learning from academic theories.
Ultimately, learn to use leverage in everything and start thinking long-term about how to achieve exponential growth through the compounding effect of knowledge, skills, and mindset. Everyone should dare to dream and think bigger. Those who believe they can change the world will eventually achieve their goals through persistence and innovation.
On taking risks and making asymmetric bets
Once your basic needs are met, its time to take some big risks. I like a unique way of thinking about planning your life, which is to use monthly expenses x 12 months x 25 to determine the amount of money you need. 4% of this number should be enough to support you to live a normal life, that is, you can withdraw 4% from your portfolio and never withdraw your principal to zero, assuming an annual return of 10%. However, if you are young and dont have many responsibilities and expenses, it is worth taking risks even if you dont have a lot of savings.
When making decisions, ask yourself what the worst-case outcome is. Most of the time, the worst-case scenario is that you’re back to square one, which isn’t too bad. But if you succeed, the payoff could be 10 times your existing wealth, or even more. This applies not just to money, but also to the skills and opportunities you gain. The key is to make asymmetric bets—those that pay off 10 to 100 times if they succeed, but lose less if they fail.
In contrast, avoid risks that offer small rewards if you are right, but huge losses if you are wrong. In the long run, prioritize long-term gains over short-term comfort (such as a steady monthly salary). Survival and stability are important, but it is more important to invest in opportunities that will bring long-term returns.
Many people become quite comfortable in their jobs, and as their salary increases, the temptation to take risks gradually decreases. However, the cost of replacement is also gradually increasing. In fact, most people can return to their original jobs or find a similar position with the same salary after a failed attempt. Therefore, do not be afraid of failure. After all, short-term comfort and long-term growth are often a trade-off, and real wealth comes from taking risks and accumulating over the long term.
What do you really want?
You may have heard the famous quote, Give me six hours to chop down a tree, and Ill spend the first four sharpening the axe. This quote emphasizes the importance of planning ahead and thinking through important decisions and choosing what to focus on. If youre thinking about what you should focus on or what you should prioritize for the next year, taking a few days to think quietly and develop a realistic plan is far more effective than rushing into it and going with the flow.
As Alice in Wonderland said, If you dont know where you want to go, it doesnt matter which direction you go. This reminds us that what really matters is to take the time to think about your life goals and clarify what you really want to do. Many people could create many wonderful things if they had more confidence. But unfortunately, many people watch life-improvement videos on social media, absorb these ideas, but often do not take any action. You may feel that watching videos is very rewarding, but it is actually no different from watching TV shows, just a short-term dopamine stimulation.
Have you ever asked yourself if you are doing anything that is conducive to long-term growth? Or is everything you do based on short-term pleasure? There is nothing wrong with food, sex, exercise, entertainment, dating, games, drugs, alcohol, etc., but the problem is that you cant make your life revolve around these activities. After all, you are not a monkey, you have the ability to delay gratification, which is the key to growth and success.
Truly rewarding, long-term activities that bring higher returns include learning a new language, starting a business, completing a marathon, earning a degree, moving to another country, writing a book, learning a career-changing skill, investing, losing weight, building a personal brand, etc. These activities not only bring long-term satisfaction, but also propel you toward higher goals and lay the foundation for future success.
Some advice for people who have little capital and are just starting to learn cryptocurrencies
In the crypto industry, endurance is probably the most important skill. If you are willing to invest 12 to 14 hours a day to learn and improve, even if you dont have much capital, time is still your most valuable asset. Whether you choose to focus on writing, trading, research, NFTs, airdrops, YouTube, Telegram, podcasts, etc., the key is to find a direction that suits your interests and strengths. If you are good at writing, X, newsletters, and Telegram are good choices; if you are better at verbal expression, YouTube and podcasts may be more suitable. Most importantly, keep learning and continue to work hard to improve yourself.
Once you have found your strengths, the next question is: Can these skills be paid for? If they are not mature enough, you can gain experience through internships. Internships may pay less, but they provide you with the opportunity to meet industry elites, get inside information, and accumulate knowledge. If your skills are strong enough, you can choose to start your own business or apply for a position at a crypto company. Although the path to making money on your own is difficult and requires a lot of time investment, if you believe that the long-term returns will far exceed those of a regular job, then starting your own business may be a direction worth trying. On the other hand, applying for a company position can bring a more stable income, especially during a bull market, when the companys salary may be much higher than a traditional job, and you can use your free time to continue to develop your side business.
In the crypto industry, X is an extremely important platform, it is like your personal resume. By writing, interacting and sharing on X, you can attract top industry figures and build valuable connections. By consistently tweeting every day, actively interacting with others, and even offering advice without reward, you can build reputation and increase exposure. Many crypto companies and recruiters will look for potential talents through X, so establishing a strong presence on this platform is crucial to your career development.
Trading is a high-risk, high-reward skill for those who want to profit from trading. Successful traders are often able to spot inefficiencies in the market and opportunities that others overlook. The crypto market, unlike the stock market, is slower to react, especially when major news breaks. While there are many retail investors in the market, those who truly possess market insight and technical analysis skills often reap the greatest rewards. Learning how to identify cyclical and trending fluctuations in the market, and developing self-control and patience will be key to your success as a trader.
Finally, it is worth noting that there are many different voices in the market. You need to learn to distinguish which suggestions are worth adopting and which are just for others to profit from your investment. Especially in low-market-cap currencies, price fluctuations are greater and the risks of suggestions are higher. Therefore, staying rational and alert and avoiding blindly following the crowd is the basis for success in the crypto market.
Why is it so valuable to be the best in your field?
Finding my ultimate goal has been interesting. Looking back at my days working 50-60 hour weeks at corporate companies, I didn’t hate the hours, I hated the fact that what I was doing had no impact on my life. Now, every hour of work I put in will eventually pay off, and while I may not always succeed, it’s all mine. This makes me more motivated to do better because only I can make it a success. If I don’t put in the effort, the momentum I’ve built will stagnate.
Its not hard to be in the top 10% of a field. Its all about putting in a lot of time and effort. But if you want to be in the top 1-2 %, you need to not only work hard, but also work smart. Looking back, if I had outsourced more work or given up some of the content I love, I might have been able to scale more efficiently. But I love what I do now, so Im not in a rush to maximize profits. Writing and sharing with everyone is a process that I enjoy myself, not only for the money, but also for satisfaction and growth.
Life is long, dont be afraid to go after what you really want. Dont settle, and this applies not only to your career, but also to your partner and friends. If you want your life to be filled with luck, then first be prepared for it to come. Luck often finds you when you work hard, not when you wait.
What do I want? Often we think about what we lack, but what is really worth reflecting on is, How much effort have you put into achieving these goals? Many people are afraid to start because they are afraid of failure or feel that a certain field is already saturated. In fact, the reason why most people fail to start is because they do not have clear goals and steps, and they are too focused on the final result and ignore the courage to start.
Gain exclusive knowledge
You need proprietary knowledge, and proprietary knowledge is knowledge that only you have. The easiest way to create proprietary knowledge is to build a personal brand. By consistently publishing content, you can attract your own community. Although I know I am not the best writer, I choose to be consistent and publish at 80% completion instead of striving for perfection, which ensures that I can output content efficiently.
In order to gain exclusive knowledge, it is important to have a unique opinion. Some people will like your unique style. You should focus on your strengths instead of trying to make up for your weaknesses. Instead of investing your energy in improving your weaknesses, it is better to spend your time and energy on things that you are naturally good at, so that you are more likely to stand out in a certain field.
True satisfaction comes from doing something you are intrinsically motivated to do, rather than working just for money. When you no longer work for money, you will find that you are more able to focus on achieving your personal goals. Ask yourself, if money was no object, what would you choose to do? This question can help you reflect on whether you are doing something you are truly passionate about.
Early in your career, especially in your 20s or 30s, take risks and pursue areas that really interest you. You can grow and be inspired by surrounding yourself with the best in your field. Social networks, such as X, allow you to find and connect with people who share your interests and who may become important partners in your career later in life.
In general, by doing this, you can build your personal brand, focus on your strengths, pursue your inner passion, and grow together with the best people through continuous efforts.
