Yi Lihua: Choosing the right direction in the crypto industry is crucial for long-term returns.

Yi Lihua, founder of Liquid Capital, stated that reflecting on his observations since entering the cryptocurrency industry in late 2015, he finds that beyond personal effort, choosing the right direction is paramount. He believes the groups most likely to achieve long-term success in the crypto space mainly fall into three categories: first, the BTC/ETH/BNB accumulation camp, encompassing mining, coin hoarding, and pool operations, which yield compounding returns over time; second, participation in trading infra (trading infrastructure), including quantitative arbitrage, trading platforms, and stablecoins; and third, projects and market makers (MMs), which focus on asset issuance and control. Meanwhile, investors and derivatives traders overall experience more failures than successes. Their operating model resembles that of hunters, requiring them to go out hunting daily just to eat, characterized by high risk, relatively low returns, and minimal compounding.