When I stared at the real curve of my friend's account climbing from 1500U to 45,000U over 5 months, I finally understood that the market rewards not the bold, but the ruthless individuals who 'discipline crushes human nature.'
As an experienced investor who has survived multiple liquidations while looking at on-chain data every day, I have witnessed too many myths of 'getting rich overnight' collapsing in an instant. But when my friend sent me a screenshot of their holdings, I was still shocked—not because of the returns, but because of that nearly zero drawdown stable upward curve.
Today, I won't talk about any metaphysical secrets; instead, I will break down three survival principles that I have verified with real money.
01 All-in is the favorite fish feed of the dealer
Newbies love to ask 'which coin can double immediately', and my answer is always: your primary goal is not to make money, but to survive. Data shows that the first-year loss rate for crypto newbies is as high as 79%, and the liquidation probability for those fully invested is 11 times that of those who diversify their holdings.
The reason my friend can achieve growth is primarily that he follows an iron rule: never expose all capital to market risk.
My capital management formula is very simple, but less than 10% strictly execute it:
Scout (30% of funds): Specifically used to test short-term opportunities, such as betting on a 3-5% rebound at a strong support level, and run away as soon as you get it—never linger. This portion of funds is like a thermometer, helping you feel the market pulse without taking big risks.
Main force (40% of funds): Only participate in opportunities with 'triple confirmation'—significant breakout at key positions, alignment with the broader environment, and clear stop loss. No such opportunities? Then patiently wait; the market is never short of volatility.
Reserve team (30% of funds): This is your survival guarantee; even if other parts are liquidated, this money cannot be touched. Many people fall before dawn simply because they did not reserve 'revival coins'.
Remember, being fully invested is like handing the steering wheel over to the market while you sit in the trunk.
02 Learn to lie like a crocodile, rather than let candlesticks dance around
My friend has been in a cash position 70% of the time over the past 5 months. Newbies shake their heads when they hear this: 'Isn't that a waste of time?' But the truth is—90% of market profits come from 10% of trending movements.
His 'crocodile lurking strategy' is actually very simple:
Look at charts only 3 times a day; turn off trading software at other times. This prevents emotional trading caused by frequently checking the market.
Only enter when there is a major breakout: For example, if a mainstream coin breaks out suddenly after consolidating for two weeks, and the risk-reward ratio reaches 3:1 or higher, then consider entering.
Take back your principal first: After any position profits exceed 5%, withdraw the principal portion first, allowing profits to run. This way, even if you later stop loss, you have already secured a profit.
I used to trade 20 times a day, only to end up working for the exchange; now I learn from sloths, making only a few trades a year, and my account is steadily growing. Less action is the best action.
03 Write your own 'automatic impulse control' code
Retail investors lose money not because they are stupid, but because they think 'it can still rise' or 'just hold on a bit longer to break even'. I have set three iron rules for myself, just like locking away impulsiveness:
A single loss > 2% automatically triggers a soul-searching question: 'Am I investing or just giving warmth?' Strict stop-loss discipline is fundamental for long-term survival.
Profit > 5% immediately withdraw half, and move the stop loss up to the cost price for the remaining portion. This avoids the shameful scenario of 'profits turning to losses' and protects both profits and principal equally.
Never average down on losing positions: The only difference from 'doubling down at the casino' is that the casino also gives you free drinks. Averaging down on losses is a suicidal act.
Setting a stop loss is like wearing a seatbelt—often annoying, but it is your only safety rope when something goes wrong.
04 The underlying logic of doubling small funds
Many people think that to double small funds, they must gamble on high leverage or buy altcoins, but data shows that users with 10x leverage have an average survival period of only 17 days, and 83% of liquidation orders occur when leverage ≥5x.
The real logic of doubling is:
Invest with spare money, so you can maintain a stable mindset. If losing this money affects your life, then you have already lost.
Starting with Bitcoin, it is the only asset least likely to go to zero. Many people complain that Bitcoin rises slowly, yet they do not realize that most of those pursuing 'hundredfold coins' end up losing their principal.
Dollar-cost averaging is your good friend: It not only smooths out the buying cost but also 'refreshes' your perception of holding time through continuous purchases, helping you hold on.
The market does not pity those with little capital, but it rewards 'patient hunters'. My friend now spends only 15 minutes a day observing the market, living a normal life the rest of the time—real profits come from strategy automation, not emotional roller coasters.
If you're tired of being bounced around by the market like a ping pong ball, try engraving these rules on your screen. Remember, in this market, survival is victory. Cambridge data shows that beginners who strictly follow risk control rules have a three-year survival rate that increased from 19% to 68%.
Slow is fast, less is more; the crypto space never lacks opportunities, but what is lacking is the money to survive until the next bull market. Follow Xiang Ge to learn more firsthand information and precise points about the crypto space, becoming your navigation in the crypto world; learning is your greatest wealth!#加密市场反弹 #美联储降息 $ETH
