“I invested all my house money into cryptocurrency, and now it has dropped by 60%. What should I do?” Every time I see comments like this, I feel very pained. Many people cannot endure the bear market because they made the most basic mistake of capital management: putting all their funds into cryptocurrency, even using leverage and borrowed money. In a bear market, this kind of capital management is a disaster; once it drops, there is no buffer space.
Principle of dry goods: In any investment market, you must follow the principle of 'not investing more than 20% of your funds in high-risk assets.' Cryptocurrency, as a high-risk asset, should have its position controlled even more. In the 2025 bear market, those investors who made it through mostly invested spare money, controlling their position at 10%-20%, and even if there is a drop, it won't affect their lives. Those who went all in or even leveraged will either face liquidation or be forced to sell at a loss due to life pressures.
Looking at the institutions' operations: traditional financial giants like BlackRock and Fidelity have laid out Bitcoin ETFs, but the proportion of crypto assets in their overall asset allocation does not exceed 5%. Institutions understand risk control better than retail investors; they do not put all their eggs in one basket. In contrast, many retail investors put all their savings, even borrowed funds, into cryptocurrencies, hoping to get rich overnight, only to lose everything in the bear market.
Capital management is the foundation for survival in a bear market. Without proper capital management, no matter how sharp your coin selection is, it won't help. If your position is currently too heavy, or if you have even used borrowed funds, quickly reduce your position and prioritize risk control. Follow me@币圈罗盘 , the next article will share 'Bear Market Asset Allocation Plan', teaching you how to retain the spark of a bull market while controlling risks. Remember, as long as the green hills remain, you won't fear the lack of firewood.
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