Control your emotions, and you will have won more than half of the market.
I remember when I first entered the cryptocurrency space, I was also captivated by those stories of overnight wealth. Eight years have passed, and I have witnessed tears from liquidations at three in the morning, as well as tragedies where money earned by luck was eventually lost through skill. Looking back now, those who have survived through three cycles of bull and bear markets have relied not on advanced technical analysis, but on the simplest survival wisdom.
Today, I will share three key insights from my own experiences that helped me survive in this turbulent sea starting from 200,000.
1. Don't be an 'impulsive gambler'; learn to 'play dead' during volatile periods.
Last week, a reader approached me and said he invested half a year’s salary into a small cryptocurrency and now can't sleep. I asked him why he chose this coin, and he replied: 'Everyone in the group says it will rise.'
This reminds me of my former self. At that time, I watched the market for over ten hours a day, and every small fluctuation made me anxious. Until one day I did the math: frequent trading in a fluctuating market resulted in a 20% loss after deducting fees. Meanwhile, those friends who occasionally logged in and held long-term ended up making a fortune.
The most deceptive aspect of the crypto world is not a one-sided crash, but the slow boil of a frog in water-like fluctuating market. Just like someone constantly shaking in front of you, you'll reveal your flaws the moment you make a move. Experienced veterans understand that most of the time the market has no clear direction; the best strategy at this time is to remain still.
I have set a rule for myself: ignore any market fluctuations that do not exceed 15%. Focus on work and life; the market will not change its trajectory because of your monitoring, but rather your emotions will be led by the market.
2. Refuse the 'greedy fisherman' mentality; knowing when to take profits is a true skill.
During the bull market of 2021, an investor I know held a certain token that rose from a few dollars to dozens of dollars, increasing tenfold without selling, saying he wanted to wait for a hundredfold miracle. As a result, the bear market came, and the coin price dropped by 90%; he not only didn't make a profit but also lost his principal.
This phenomenon is too common in the crypto world. The crypto market is highly volatile, with daily fluctuations of more than 20% being the norm. Many people always think 'I will sell when it rises a bit more,' only to miss the best selling point; or 'I will buy at the bottom when it falls a bit more,' only to buy halfway down the mountain.
My strategy is very simple: set profit-taking and stop-loss points in advance and execute them resolutely when the time comes. For example, if I am optimistic about a project, I will set a profit-taking point at 30% and a stop-loss point at 10%. No matter how others call out trades or how much it seems it can rise, I will sell at the set points.
Some mock me for being small-minded, taking profits and running. But eight years of experience have taught me that in the crypto world, being able to solidly pocket profits is more important than anything else. You might make 50% profit ten times in a row, but one liquidation will wipe it all out.
3. Stay away from 'all-in gamblers'; position management is a lifeline.
Position management is Noah's Ark that traverses bull and bear markets. This is the deepest realization I have gained from experiencing three rounds of bull and bear markets.
The most common mistake new traders make is to fully invest in a small cryptocurrency, euphemistically called 'seeking fortune in risk.' But the truth is: what you seek in risk is not fortune, but bankruptcy. Once this coin goes to zero, you are completely out. The survival rule in the crypto world is that as long as you stay at the table, there will always be opportunities.
My current position allocation strictly follows the '60-30-10 rule':
60% allocation in mainstream coins like Bitcoin and Ethereum, as a 'ballast.' These coins have large market caps and strong consensus, and their fluctuations are relatively controllable.
30% allocation in promising new projects, seeking excess returns.
10% kept as cash, waiting for a market crash to buy back or as living expenses.
I never use essential living funds or borrow money for investment; that's a bottom line. Many traders adopt a similar '1% risk rule' to manage funds, meaning that the risk per trade never exceeds 1% of the principal.
Survival is more important than victory.
Looking back over these eight years, I find that in the crypto world, what ultimately matters is not technical analysis, but emotional management and risk control. Those seemingly complex technical indicators and trading skills often fall apart in front of human nature.
True experts understand: living long is a thousand times more important than making quick money. When you can control your impulses, manage your hands, and stabilize your mindset, the market will naturally give you the returns you deserve.
Remember, in this market where 90% of people lose due to overtrading, sometimes 'not trading' is the best trading strategy.
Your biggest enemy in the market is not the market makers or the trends, but your own self who is always losing control of emotions. Follow Xiang Ge to understand more firsthand information and precise points in the crypto world; becoming your navigation in the crypto world, learning is your greatest wealth!
