Surviving in the crypto world means you have to protect your principal to laugh last.
Friends, last year a buddy came to me with 480U, shaking so much that he couldn't even open the trading interface. Three months later, this account turned into 12000U, with 0 liquidation and 0 leverage margin call.
This is not a myth of getting rich quickly; on the contrary, it is a story about 'making fewer mistakes.'
Today I want to talk to everyone about how we 'timid' investors can survive in the market using the simplest methods while others chase hundred-fold returns, and live long enough.
01 Accepting boredom is the only way to live not boring.
I've seen too many people come in with a few hundred U and disappear within a month. It's not that the crypto space didn't give them opportunities, but they always treat the cryptocurrency market as a casino.
The truth is, this market specializes in treating any form of disobedience. Bitcoin can plummet 50% within weeks, and altcoins can drop 90% or even more. In 2022, Bitcoin fell from $69,000 to $15,000, a drop of 78%.
How do the rich get richer in cryptocurrencies? The simplest and least stimulating method is to buy Bitcoin, Ethereum, or other top cryptocurrencies and hold them long-term.
Since 2012, Bitcoin's average annual return rate is about 150%, almost outpacing all other mainstream assets.
In the crypto space, it’s not about who earns the fastest, but who can endure the longest. If you can't keep your capital, everything is just talk.
02 My three 'earth rules'.
Rule One: Divide the money into three parts, always leave a way out.
I divided 600U into three parts, each with a completely different purpose:
200U is 'survival money': only invest in Bitcoin and Ethereum. Why? Because they are the least likely to go to zero, have the longest history, and the highest market recognition.
I exit the market if there is a 2% price fluctuation, never fighting a losing battle.
200U is 'spending money': wait for the 4-hour K-line to break through before entering the market, and hold for no more than 3 days. Missing out is not regrettable; what the market lacks is opportunity.
200U is 'lifesaving money': even if the market crashes sharply, do not use it. This is the spark for my comeback, a sense of security that those who go all in will never understand.
Position management is not a skill but a survival instinct. The risk of a single trade should not exceed 10% of total funds.
Rule Two: Only eat the fish body of the trend, not the fish head of the sideways.
The market is in a sideways movement 70% of the time, while trending markets only account for 30%. Many people lose money because they trade frequently in sideways markets, giving their capital to fees.
My entry signal is very simple: two consecutive volume K-lines on the hourly chart, plus weekly RSI being overbought or oversold. Only when both conditions are met do I take action.
Withdraw 30% to your own wallet once you earn 8%, and set a 2% trailing stop for the rest. Eating well is not as good as eating for a long time; this is my investment philosophy.
Rule Three: Lock emotions in a drawer and let discipline take charge.
We are all human and experience greed and fear. But successful investors are not those without emotions, but those who do not let emotions take control.
I set strict rules for myself:
If a single loss reaches 1.5%, the system will automatically close the position.
Take profits over 5% by closing 60% first, and set a trailing stop for the remaining.
Never add to losing positions; 'wait a bit longer' is the devil's temptation.
Discipline is not a shackle that restricts freedom, but a wall that protects freedom. The market may be misjudged, but discipline must not be broken.
03 Small capital needs more patience.
The most common mistake small capital investors make is being eager for quick success. Many think they need to take a gamble with a small amount of money, but they don't realize that small capital is even more vulnerable to fluctuations.
For users with low capital, my most recommended strategy is dollar-cost averaging: regularly invest a fixed amount to purchase Bitcoin or Ethereum and other mainstream assets.
Buy more when prices are low and less when prices are high; this can lower the average cost in the long run.
If you have 600U, consider dividing it into 12 parts, investing 50U each month for a year. Give up the fantasy of getting rich overnight to achieve consistent profits in reality.
04 Safety is more important than returns.
In the world of cryptocurrencies, security is not an optional question, but a mandatory one.
I always insist:
Do not keep all assets on exchanges; regularly withdraw coins to your own wallet.
Use hardware wallets to store large amounts of assets.
Back up your mnemonic phrase and ensure physical security.
Do not click on suspicious links or share your private keys with anyone.
Remember, protecting your capital is more important than making profits. There are always opportunities in the market, but if you lose everything on your first attempt, you will never have the chance to participate again.
The most valuable thing in the crypto space is not the hundredfold coins, but the ability to keep learning and maintain a calm mindset. Many people ask me if they can still enter the market now, and my answer is always: starting now is better than not starting at all; taking it slow is better than rushing.
If you also have a few hundred U lying in your account, ask yourself: do you want to get rich overnight and quickly go to zero, or do you prefer to slowly accumulate and steadily become wealthy?
True crypto wealth is not created overnight; it accumulates gradually over market cycles.
When the next market comes, may we all be firmly on the bus, rather than being thrown into the ditch.
Remember, we invest in cryptocurrencies for a better life, not to let life be bound by investments. Enjoy your hobbies, spend quality time with family and friends, and don't let market fluctuations dictate your happiness.
Follow Ake to learn more first-hand information and precise points about the crypto world, becoming your navigator in the crypto space. Learning is your greatest wealth!#加密市场反弹 #美联储降息 $ETH
