From bankruptcy to 30 million: 8 years of resurgence in the cryptocurrency world
In 2016, my company went bankrupt. I was left with only 50,000 yuan and spent a whole week at the exchange. In the end, I took a gamble and invested all my remaining funds into 8 bitcoins at an average price of 6,000 yuan. This was my last lifeline for a comeback.
In 2017, Bitcoin went on a crazy bull run, with an annual increase soaring to 1700%. My account jumped to 800,000 yuan. Staring at the fluctuating numbers on the screen, I couldn't sleep all night, thinking I had secured financial freedom. However, in 2018, the bubble burst, and the cryptocurrency market's value shrank by 70%. My balance plummeted to 180,000 yuan. That deep night, I realized harshly that unrealized gains are illusory; only realized profits are real money.
In 2020, I completely bid farewell to chasing highs and lows, diving into mining and DeFi. Three years later, my account comfortably sat at 3 million yuan. People often ask me how many hundredfold coins I’ve caught. I smile and answer that the core of survival in the cryptocurrency world is risk control. The three iron rules forged from 8 years of blood and tears are shared with you today.
First rule: Preserving capital is earning. If you have capital, you have opportunities. During the crazy rise of altcoins in 2021, I followed the trend and bought a certain token, which rose by 50%. I immediately withdrew my principal. Later, it plummeted by 90%. I relied on profits to keep going, and I still made money. The cryptocurrency world never lacks opportunities; however, if you lose your principal, it’s Game Over.
Second rule: Only earn money you understand. Understanding determines returns. If you can’t grasp any aspect of the white paper, team, or token economics, then give up. During the IEO frenzy in 2019, I stayed put and avoided the collapse. Before Layer 2 became popular in 2021, I thoroughly researched projects like SKALE and their elastic sidechain technology six months in advance, heavily invested, and made several times the profit.
Third rule: Position size is more important than timing. Diversification is a protective charm. I stubbornly adhere to the 6211 rule: 60% of investments in Bitcoin and Ethereum, which account for over 65% of the market capitalization, serve as ballast; 20% allocated to mainstream public chains; 10% for trial and error in new sectors; 10% kept in cash for emergencies; and no single cryptocurrency exceeds a 15% position. In a bear market, I only allow a 12% drawdown.
Now Bitcoin has fallen from 126,000 to 94,000, and altcoins have been halved, further proving how fragrant these iron rules are. In a bull market, be restrained; in a bear market, stock up. True winners are not gamblers but those who navigate cycles with rules. There are opportunities every day in the market. By protecting your capital and your principles, you too can make a comeback in the next cycle. @阿二说币
