The market is always changing, but human nature remains the same.
In 2015, I entered the cryptocurrency world with naivety and the fantasy of getting rich overnight. Over the past ten years, I have witnessed the frenzy of Bitcoin rising from a thousand to sixty thousand dollars, experienced the tragedy of LUNA falling from nearly 100 dollars to 'zero' in a week, and seen countless young people lose everything instantly by borrowing money to trade cryptocurrencies.
To outsiders, the cryptocurrency world is a myth of getting rich; to me, it feels more like a battlefield, testing each person's cognition and discipline.
1. Risk Control: It's not a skill, it's a prerequisite for survival
In 2018, I once bet all my chips on a project that claimed to be the 'Ethereum killer'. As a result, the project went to zero, and that painful experience made me deeply understand: the primary risk in the cryptocurrency world is not the decline, but stepping on a landmine.
Now, my first rule is: single coin positions should not exceed 15%, and total positions should not exceed 70%, never fully invested.
This is not conservatism, but because the volatility in the crypto market far exceeds that of the stock market. It's common for Bitcoin to drop 30% in a single day. Players entering the market with short-term funds or even leverage could be eliminated by a single fluctuation.
The key to survival in the crypto market is not how many opportunities you seize, but whether you can protect your principal. The market always has opportunities, but opportunities are only left for those who still have capital.
2. Emotional management: K-lines can lie, but emotions won't.
I once chased prices due to 'fear of missing out' and ended up standing at the peak; I also cut losses due to 'fear of falling' and missed the rebound.
In the crypto market, a place where trading happens 24 hours a day and news is everywhere, one is most easily swept away by emotions.
Greed and fear are the two most common emotions for investors.
When social media is filled with screams of 'hundred times coins', it is often a signal that the market is reaching its peak; conversely, when headlines proclaim 'Bitcoin is dead', it may actually be a good timing for positioning.
I have now developed the habit of: making plans before the market opens, closing market software during trading hours, and only acting based on signals.
Withdraw principal after profits exceed 50%, and use profits to continue gambling; after three consecutive losses, forcibly stop to avoid emotional trading.
3. Focus on mainstream: digging deep in one river sees water sooner than tasting ten wells.
DeFi, NFT, chain games... new concepts explode like fireworks. I changed five tracks in a week and ended up giving all my profits to fees.
Now my watchlist only has mainstream cryptocurrencies like Bitcoin and Ethereum left. I realize that over 90% of coins in the crypto market go to zero every year, while mainstream coins have stronger risk resistance.
True value investing is only investing in coins that you understand.
For beginners, the simplest distinction method is: apart from Bitcoin, Ethereum, and other top ten cryptocurrencies, treat other new coins as air coins.
Coins that have no practical application, vague team backgrounds, and only promise high returns are likely traps.
4. Stop-loss discipline: admitting mistakes is more important than proving correctness.
I have set a mechanical stop-loss line of 10% for myself; once triggered, I will cut losses without looking for reasons or checking the news.
It sounds simple, but it is the most testing part of human nature.
In the crypto market, stories of liquidation in 5 minutes and 30 million turning to zero in an instant are common.
Especially in contract trading, leverage varies from 5 times to 125 times. Taking 20 times leverage as an example, you only need to pay a 5% margin to trade, but as long as there is a 5% fluctuation, you face the risk of liquidation.
Stop-loss is not giving up, but the core of risk control. It's like wearing a seatbelt while driving, not for the purpose of getting into an accident, but to survive if one occurs.
5. Trading system: do simple things repeatedly.
My system now has only four sentences:
Do not invest in what you do not understand;
Review at a fixed time every week; temporary inspirations are all invalid;
Withdraw the principal first, and profits can continue to take risks;
Core positions remain unchanged, while short-term positions are just for seasoning.
This system was not formed overnight but was gradually improved by spending 10 minutes each day looking at trading volume and trend lines, summarizing weekly what was done right and wrong.
The crypto market never lacks smart people, but it lacks disciplined ones. Many people fail to make money because their thinking has not kept pace with the times, falling into path dependence.
But the market has changed; even Bitcoin has been included in ETFs, and the old methods from a few years ago may have already become ineffective today.
Survive and wait for opportunities.
In the crypto world for ten years, my biggest realization is: the crypto market rewards not the perfect, but those who can persist until the end.
You don’t need to predict everything, nor do you need to be right all the time; you just need to keep moving forward through mistakes and protect your principal in the storm.
If I had to sum up ten years of experience in one sentence, it would be: not losing money is more important than making money; staying alive allows you to wait for opportunities.
Investing is not a sprint but a marathon—running longer is more important than running faster.
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