In the 2024 crash of the cryptocurrency market, when 90% of my friends' accounts were halved, my position only retraced by 12%. This is not luck, but the survival wisdom taught to me by that "bankruptcy gamble" 8 years ago. On the day of the company's liquidation in 2016, I stood in the trading hall with only 50,000 yuan left, not daring to place an order for an entire week, until I converted all my money into 8 pieces of "digital gold", thus embarking on a cryptocurrency journey paved with blood and tears.
Many people think that winners in the crypto circle are gamblers who catch hundredfold coins, but I have spent 8 years in practice to tell you: the real logic of making money is to use rules to counteract human greed and fear. From the 800,000 profit in the bull market of 2017 to the late-night collapse of 180,000 in 2018, and then to my account steadily reaching 30 million in 2023, I have stepped into pitfalls and summarized iron rules, which I share today without reservation with you who are still struggling in the cycle.
The first iron rule: The principal is 1, everything else is 0.
When I first entered the market, I also chased after "doubling in a day" altcoins, until the lesson in 2021 completely awakened me. At that time, a certain popular token surged by 50%, and I decisively withdrew my principal, leaving only profits to "run" in the market. Later, it indeed plummeted by 90%. I not only didn't lose, but also made some pocket money. The crypto market is never short of opportunities, but if your principal is gone, you will forever lose the qualification to turn things around.
My current operational principle is: any investment should first calculate the "worst-case scenario"; if the loss exceeds 20%, cut losses immediately. Just like this adjustment at the beginning of 2024, I proactively converted 30% of my positions into stable assets, which allowed me to avoid this crash. Remember, preserving capital is not conservatism; it is the first prerequisite for surviving in the crypto world.
The second iron rule: The radius of cognition determines the upper limit of returns.
Over the years, I have rejected countless "insider information" because I firmly believe: money that cannot be understood will be lost back to the market by strength, even if it is earned. During the IEO boom in 2019, while my friends were scrambling for quotas, I spent three months studying project white papers, discovering that most were "air coins"; I decisively held my position, and sure enough, a wave of collapse followed.
Six months before the Layer 2 concept exploded in 2021, I began to deeply study elastic sidechain technology, comparing the technical architectures and token economics of more than a dozen projects, and ultimately made a heavy investment in a leading project, achieving a fivefold return in six months. Investing in crypto is like mining; you need to understand the principles of mining machines to dig out real gold.
The third iron rule: Position management is more important than timing.
My original "6211 Position Rule" has helped me achieve smooth transitions in four bear markets: 60% allocated to mainstream market assets as ballast, 20% invested in quality public chain ecosystems, 10% for trial and error in new tracks, and 10% kept as cash for emergencies. Moreover, the position of any single asset should not exceed 15%, so even if a certain type of asset crashes, it will not affect the overall account safety.
In this adjustment of 2024, it was precisely the 60% position in mainstream assets that withstood the downward pressure, while the 10% position in new tracks seized the rebound opportunity. Many people always think about "precise bottom-fishing," but the market is always unpredictable; only a reasonable position structure can ensure your stability amid cyclical fluctuations.
In a bull market, restrain your desires; in a bear market, accumulate your chips. This is the survival strategy in the crypto world. Market conditions change every day, but your principal and your true intentions must remain unchanged.
