In the crypto market, some people become complacent after making money, only to lose it all during a bear market; others become discouraged after losing money and miss the opportunity in the next bull market. True experts do not focus on how much they earn in a bull market, but rather how they adeptly navigate between bull and bear phases to achieve steady asset growth. As an experienced analyst who has traversed through three cycles of bull and bear markets, today I share my survival rules with you: these five core strategies can help you survive and make money in the crypto market.
First strategy: Do a good job of asset allocation, and do not put all your eggs in one basket. Many retail investors tend to heavily invest in one cryptocurrency, which either soars or plummets. This method carries too much risk; once a black swan event occurs, it could lead to total loss. The expert's approach is to do a good job of asset allocation, distributing funds across different types of assets based on their risk tolerance.
My asset allocation advice is: core assets (Bitcoin, Ethereum, etc.) should account for 50%-60%, as these assets are stable and can guarantee basic returns; potential assets (high-quality altcoins, leading projects) should account for 30%-40%, as these assets have significant upside potential and can enhance overall returns; risky assets (early-stage projects, meme coins, etc.) should account for no more than 10%, as these assets are high-risk but can provide substantial returns if successful. Additionally, a certain proportion of stablecoins should be allocated for bottom fishing during market corrections. It's important to note that asset allocation is not static and should be adjusted based on market cycles and asset performance.
Second strategy: Stick to dollar-cost averaging, overcome emotional trading. Many retail investors lose money because of emotional trading, chasing highs and selling on lows. Dollar-cost averaging is an effective method to overcome emotional trading. It means regularly investing a fixed amount in a certain asset, regardless of market fluctuations. This can help reduce costs and lower risks.
My dollar-cost averaging advice is: choose 1-2 high-quality core assets, like Bitcoin or Ethereum, and invest a fixed amount at regular intervals each month or week. Don't increase the investment amount because of market rises, and don't stop investing because of market declines. The key to dollar-cost averaging is long-term persistence; time will help smooth out market fluctuations. I have seen many people achieve multiple returns through dollar-cost averaging in Bitcoin over 3-5 years. Of course, dollar-cost averaging is not a cure-all; if you dollar-cost average into a worthless project, you may still end up losing money. Therefore, choosing high-quality dollar-cost averaging targets is very important.
Third strategy: Learn to cut losses and take profits, preserve the fruits of victory. Many retail investors have a common problem: when making money, they always want to make more, resulting in missing the opportunity to take profits, and ultimately losing money; when losing money, they often wait for a rebound, and end up getting deeper into losses, ultimately having to cut their losses and exit. Learning to cut losses and take profits is a fundamental lesson in cryptocurrency market investment.
My advice on cutting losses and taking profits is: for core assets, the stop-loss line can be set at 20%-30%. If the asset price drops beyond this range, it indicates a significant market change, and one should cut losses and exit promptly; the take-profit line can be set at 50%-100%. If the asset price rises beyond this range, one can take profits in stages, selling part to lock in some gains, while the remaining part can have a trailing stop set, increasing the take-profit line as the price rises. For potential assets, the stop-loss line can be set at 30%-40% due to greater volatility; the take-profit line can be set at 100%-200%. If the market conditions are favorable, the take-profit line can also be appropriately raised. It's important to strictly execute stop-loss and take-profit plans without changing them due to emotions.
Fourth strategy: Conduct in-depth research, don't invest if you don't understand. The cryptocurrency market has a wide array of projects, including high-quality ones, as well as many worthless coins and scams. If you don't conduct thorough research, it's easy to fall into pitfalls. The reason experts can make money in the market is that they have in-depth knowledge of the projects they invest in, understanding the core value and risk points of the projects.
My research advice is: before investing in a project, you must conduct thorough due diligence. First, review the project's white paper to understand its technical principles, application scenarios, team background, token economics, and other information; next, check the project's on-chain data, such as trading volume, user count, and wallet addresses, to gauge the project's real popularity; finally, pay attention to the project's community dynamics to understand the community members' evaluations and expectations for the project. If you are unclear about any aspect of the project or have questions, do not invest in it. Remember: don't invest if you don't understand, is the first principle of investing.
Fifth strategy: Keep learning and keep up with market changes. The cryptocurrency market is a rapidly evolving market, with new technologies, projects, and policies emerging every day. If you don't keep learning, you'll easily be eliminated by the market. Experts all share a common trait: they continuously learn and enhance their professional capabilities.
My study advice is: pay attention to authoritative media and analysts in the industry to stay updated on industry trends; learn the basics of blockchain, understanding the technical principles and development trends; participate in industry conferences and events to communicate and learn from other investors and practitioners; continuously summarize your own investment experiences and lessons to optimize your investment strategies. Only by maintaining learning can you keep up with market changes and seize new opportunities.
Finally, I want to say to everyone: the cryptocurrency market is not a casino, but an investment field that requires professional knowledge, rational thinking, and patience. Only by mastering the correct investment strategies can one survive and make money in the market. These five core strategies are a summary of my years of investment experience, and I hope they can help you. In the future, I will share more practical tips and knowledge about cryptocurrency investment, follow me @链上标哥 to stay on track! I'll guide you through bull and bear markets to achieve steady asset growth.
