The crypto market is not short of stories of 'from broke to millionaire', nor is it lacking scenes of accounts dropping from several hundred thousand dollars to just a small figure in just one down cycle. The reality proves: long-term winners are not the group chasing 'x3, x10', but those who understand the rules of the game, know how to protect themselves, and know how to go the distance.

👉 Below are 3 core principles that serve as the backbone helping many investors preserve their capital through many bull-bear seasons, and even grow steadily even when the market is bleak.

1. CAPITAL IS FUNDAMENTAL – ONLY USE SPARE MONEY FOR INVESTING

The biggest mistake of newcomers is using all their available funds to all-in at a moment they consider a 'golden opportunity'.

But crypto is not a place to gamble the future. The most important thing is:
Money used for investing must be spare money – meaning losing it should not ruin your life, but gains should bring value.

Important rule:

  • Never use all your assets to enter the market.

  • Only put into the market a portion that you are willing to accept the risk.

  • New trends, trend-following coins should only use a small portion of capital for experimentation, absolutely do not take money that must be used to jump in.

Many projects once celebrated and heavily marketed can fall 80–90% just months later. Anyone who cannot withdraw their initial capital will completely miss the chance to start over.

=> Crypto is not short of opportunities, but lacks people patient enough to wait with capital for opportunities.

2. ONLY INVEST IN WHAT YOU UNDERSTAND – “NOT UNDERSTAND” = “DO NOT BUY”

This market has countless 'colorful' projects, whitepapers written just for formality, obscure teams, and tokenomics flawed from the design stage.
Most losers share a common point: buying what they do not understand.

A simple but extremely effective screening criteria:

“Three cuts to avoid traps”

  1. Unclear whitepaper → EXCLUDE
    If the goals, real-world applications, and roadmap are all vague, there is no reason to take risks.

  2. Anonymous team or untraceable information → EXCLUDE
    The market has witnessed too many rug pulls just because investors trusted a few avatar images.

  3. Loose tokenomics, imbalanced allocation → EXCLUDE
    A project where the team – investor holds a large portion of tokens and unlocks them rapidly will almost certainly lead to a “dump” on retail investors.

On the contrary, projects with clear products, transparent teams, technologies, or models that can be applied in practice often yield sustainable profits.

=> In crypto, large profits often come from knowledge, not luck.

3. MANAGE THE HIGHEST THRESHOLD: CAPITAL GATEWAY MANAGEMENT (POSITION)

Many rush to find the “lowest buy point,” “highest sell point,” but in reality, this is something no one can do consistently.

The key principle for long-term survival is:
Managing positions is 100 times more important than guessing the bottom – top.

Below is a popular and effective capital allocation model, helping investors limit volatility and avoid the situation of “wiping out when the market reverses”:

Suggested allocation formula:

  • 60% into valuable assets – foundational layers, with high liquidity and lower risk (BTC, ETH, blue-chip assets).

  • 20% into ecosystems or technologies with real-world applications – where growth is generated in the bull phase.

  • 10% to experiment with new trends (AI, RWA, BTC L2…), clearly defining this as “risk capital”.

  • 10% reserve, in case of emergencies or to take advantage of opportunities when the market drops sharply.

The accompanying golden principle:

  • No project occupies more than 15% of the total portfolio.

  • Cut losses and take profits according to the Plan, not based on emotions.

  • Always keep liquidity to guard against uncertainties.

Thanks to scientific allocation, even when the market drops sharply, investors can still maintain low drawdowns while having the ability to accumulate good assets at discounted prices.

=> When there are rules, market fluctuations no longer make you panic.

Wrap up

Crypto is not a casino. The winner is not the most reckless, but the one who:

  • knowing how to protect capital,

  • only invest in what you understand,

  • and manage risks more tightly to earn profits.

The bull cycle will return. Those who still have capital, courage, and knowledge will emerge from the market stronger, richer, and more stable.