When I first entered the crypto space, the first piece of 'advice' I heard was: guard your coins as if guarding a widow. I even shamelessly said so, but in the following years, I not only did not guard my coins with that mindset, but instead invested in countless garbage coins.

Today, I send this phrase back to everyone because the path to greatness is simple, and ultimately we will realize how valuable this phrase is many years later. If I reflect on it, I would like to talk to you as someone who has been there about how newcomers can avoid losing money in the crypto space.


First principle: Risk management

Don't go all in! Although I personally went all in, I do not recommend you to do so right away; belief is one thing, but ultimately everyone must face the expenses of daily life, whether certain or uncertain.


Cut losses in time! The most common mistake new entrants in the crypto space make is 'holding on until the end.' If I ask you, are there more people making money in the investment market, or more people losing money? I think the market has already given the answer, it's definitely more people losing money. So can you ensure you never lose money in every investment? The answer is no.


Therefore, on one hand, you cannot buy at the lowest point, nor can you sell at the highest point. Your first lesson should be to learn to accept losses, then learn from those losses, deeply understanding that cutting losses is not 'losing capital,' but rather the capital with which you can continue to turn things around.

Diversify your investments! This is where I differ greatly from others; what others call diversification refers to spreading positions, while my view on diversification is about spreading wallets. Do not keep all your Bitcoin in one wallet, and do not keep all your Bitcoin in one exchange account.

No one wants their exchange to be hacked, or for the exchange to close down or run away. But as long as this possibility exists, with huge profits at stake, there will always be someone trying it out, so definitely do not store all your coins on an exchange, and do not use only one personal wallet to hold all your Bitcoin.


As for those who say to hold 60% Bitcoin and use the other 40% to buy other mainstream coins or a portion of altcoins, this kind of diversification logic cannot be said to be wrong; we can only wait and see.

Second principle: Cognitive upgrade

Understand the essence! First, remember the three core essences of Bitcoin: decentralization, fixed total supply, and immutability. It's okay if you don't understand the Bitcoin white paper, take your time; these three essences must always be kept in mind, as they relate to how you should face the overwhelming news and rumors.


The depth of understanding Bitcoin determines the length of time you will hold Bitcoin.


Trust the data! What is the difference between humans and animals? Humans use tools and continuously invent new ones. Bitcoin is truly the most open and transparent 'public company' in the world, so it is natural for Bitcoin to surpass all public companies and take the top seat in the future.

Third principle: Psychological construction

Overcome fear! Some viewpoints mention that the pain of loss for humans is twice that of the pleasure of gain, which leads to 80% of investors choosing to 'play dead' when they are losing, ultimately getting deeply trapped.

In the cryptocurrency space, the opposite of fear is not courage, but preparation. The market is always right, especially for investment products like Bitcoin that experience continuous fluctuations, where a drop of 30%-50% within 24 hours won't be the first time nor the last.


And what to prepare? Either prepare to cut losses in time or prepare to hold firmly.

Long-termism! I have told you before, entering the market at any time node, even if you go all in directly, as long as you hold firmly for more than 5 years, it will always be profitable, even far exceeding any other stocks, funds, or bonds, and you do not need to do any extra operations.

In October 2017, the price of Bitcoin was $4,367. In 2022, the price of Bitcoin was $20,340. This 5 years saw a 3.6 times increase in assets, with an average annual return of 37%. In October 2018, the price of Bitcoin was $6,622. After 2023, the price of Bitcoin was $26,874. This 5 years also achieved a 3 times increase in assets, with an average annual return of 32%. In October 2020, the price of Bitcoin was $10,000, and in October 2025, the price of Bitcoin...

FOMO (Fear of Missing Out) is a normal emotion; as the saying goes, gold is cold, but when held in hand, it's warm. However, emotional fluctuations do not change the fact that you have missed out; if you want to change the facts, you must change your emotions.

Your emotions determine your perspective on things, your perspective determines your actions, and your actions influence your cognition, ultimately reinforcing your emotions.

Chasing highs gets you trapped → Doubting yourself → Blindly following the crowd → Losing again → Reinforcing the belief that 'the crypto space is a scam' — this logical loop causes countless people to enter the market at the beginning of a bull run, only to cut losses halfway through a bear market, perfectly missing the next cycle.

When you understand that the victory of long-termists comes from 'muting' the emotional noise, you are no longer a newbie but truly impressive.