I fell into the cryptocurrency world in 2016. At that time, my small company had just gone bankrupt, and I was left with only 50,000 yuan, wandering outside the exchange for a whole week. In the end, I made a bold decision and invested it all in Bitcoin—8 coins, at an average price of 6,000 yuan. Others said it was gambling, but I knew it was my last straw.
1. The Dream of Getting Rich Comes to an End: The Euphoria of a Bull Market and the Slap of a Bear Market
In 2017, Bitcoin went crazy, rising 1700% in a year! My account soared to 800,000. I couldn't sleep at night, staring at the screen, really feeling that financial freedom was just within reach. But when the bear market hit in 2018, the market shrank by 70%, and my assets plummeted to 180,000. That night I smoked half a pack of cigarettes and finally understood: unrealized gains are just numbers, it's the money in your pocket that counts.
I've seen too many people make a fortune in a bull market and lose everything in a bear market. One brother played contracts in 2019, doubled his money in one night, and the next day he was liquidated to zero. That's how it is in crypto; you earn fast, but you die faster.
Second, the bloody iron rule: Survive to laugh last.
After eight years of pitfalls, I've compiled three life-saving rules. These rules helped me avoid the LUNA crash in 2022 and withstand this year's Bitcoin fluctuation from 126000 to 94000.
Capital preservation first; with the principal, opportunities are always there.
In 2021, when altcoins surged, I followed the trend and bought something called 'Dog Shit Coin' (you know what I mean). When it rose by 50%, I immediately withdrew my principal and left the profits to grow. Later, it plummeted by 90%, but I could still laugh and drink coffee—my principal was safe, giving me the confidence to recover.
There are plenty of opportunities in the crypto space, but if the principal is gone, the game ends immediately.
Only earn money within your understanding; if you don't understand, give up.
I have a habit: If I don't understand the white paper, I don't invest! If the team background is vague, I give up! In 2019, when IEOs were explosive, so many people went all in, but I didn’t budge. Later, when the projects ran away, those people didn't have time to cry. By 2021, when Layer 2 projects emerged, I researched ZK-Rollup technology six months in advance and heavily invested in a few strong players, reaping the rewards.
The money that the big shots earn is the realization of their understanding.
Position management is more important than timing.
My '6211 rule' has been used for five years:
60% allocated to Bitcoin and Ethereum (the ballast, accounting for more than 65% of market value);
20% allocated to mainstream public chains;
10% to test new fields (such as DeFi, NFT);
Keep 10% cash to scoop up bargains.
No single cryptocurrency should exceed a 15% position, and in a bear market, the maximum drawdown should be 12%, which won't hurt too much.
Third, female perspective: Don’t compete with men in 'risk-taking', but in 'patience'.
There are more men in crypto, and many like to show off 'one shot' or 'hundred times contracts'. But I found that female players tend to last longer—we are more cautious and accustomed to diversifying risks. For example, in DeFi mining, I never go ALL IN on one pool; instead, I cross-chain with stablecoins. The annual yield might only be 15%, but it’s stable.
Someone asked me: “Aren't you envious of those wealth myths?”
I said: “What is there to envy? A day in crypto is like a year in the real world; those who live longer are the winners.” He Yi (co-founder of Binance) became the 'sister of the crypto circle' not because of gambling, but because of determination and endurance. She came from a rural area in Sichuan, seized opportunities, did marketing, and handled crises, each step taken firmly.
Fourth, current strategy: Restraint in a bull market, stock up in a bear market.
Now Bitcoin has dropped to 94000, many altcoins have halved, and many people are panicking. But I'm actually dollar-cost averaging—buying quality tokens that have dropped significantly, such as Ethereum and a few compliant public chains; I’m slowly picking up bargains.
Remember:
In a bull market, don't get carried away; secure your profits.
In a bear market, don't be timid; accumulate chips at low positions;
Regulations are getting stricter (for example, the EU MiCA legislation), so it's safer to follow compliance.
Finally, let me be honest: After 8 years in the crypto space, my biggest realization is that there are no myths here, only ordinary people who survive. Stories of getting rich quickly are just for listening, but rules can save your life. As the next cycle comes, are you the one who 'lives to the end'?
Follow Ake to learn more firsthand information and precise points about the crypto world, becoming your navigation in the crypto space; learning is your greatest wealth!
