The cryptocurrency market is tumultuous, I will help you find a stable path forward.
Hello everyone, I am an analyst who has been deeply involved in the cryptocurrency circle for many years. Today I won’t talk about complex technical indicators or obscure blockchain terminology, I just want to share with you the five core insights I have gained over the years with real money.
1. Seek value, not chase prices.
I have seen too many people obsessed with chasing highs and selling lows, staying up late every night watching K-line charts, only to often buy at high points and sell at low points. Frequent trading is the primary reason retail investors lose money.
My strategy is simple: patiently wait for undervalued coins to appear. The market will always make mistakes, especially during bear markets, where panic can lead to good assets being wrongly killed. At this time, building positions in batches is like shopping in a discount mall, buying more good things with the same amount of money.
For example, during the bear market of 2022, Bitcoin once fell below $20,000, and many people were too scared to buy. But looking back now, that was a golden opportunity. No one can accurately catch the bottom, but we can pursue areas 'close to the bottom' and smooth our costs through dollar-cost averaging (DCA).
2. Mainstream coins are the ballast; do not treat altcoins as the main course.
In my investment portfolio, Bitcoin and Ethereum always occupy a core position, usually no less than 60%. Why? Let's look at the characteristics of these mainstream coins:
Bitcoin has a supply cap of 21 million coins, which determines its scarcity, allowing it to act like digital gold and resist inflation. Ethereum, on the other hand, is the leader of smart contract platforms, supporting the entire DeFi and NFT ecosystem.
Exchange platform tokens like BNB, due to their platform profit repurchase and destruction mechanism, also have good value support.
As for meme coins, I admit they can sometimes have astonishing gains, but I only see them as 'lottery tickets.' Playing with pocket money is fine, but I would never go heavy on them. These coins often lack actual application support, and once the market cools down, liquidity dries up, making them hard to sell.
3. Knowing when to exit makes you a true winner.
A bull market is not for holding on but for cashing out. I have seen too many people earn a fortune at the beginning of a bull market, only to give it all back at the end.
My exit strategy is clear: start selling in batches during the mid-phase of a bull market and never participate in the final frenzy. How to judge the market stage? My experience is:
When people on the streets are discussing cryptocurrencies, when various 'get-rich-quick myths' flood social media, and when altcoins start doubling in a day, it is time to consider leaving.
Set clear profit-taking targets, such as selling part of your holdings at 50% or 100% profit to lock in profits. Do not treat the market as an ATM that can withdraw indefinitely; sometimes it will close.
4. Refuse the gambling mentality; stability is the shortcut.
The biggest temptation in the crypto world is the story of 'getting rich quick.' I have seen people multiply their accounts by dozens overnight, but more often, people end up losing everything.
Contract leverage is an invisible killer for ordinary investors. During extreme market fluctuations, even if the direction is judged correctly, high leverage can lead to premature liquidation.
My principle is: never invest essential living funds and never borrow money to invest. The funds invested in the crypto world should not exceed 10%-20% of your investable assets, so even in the worst-case scenario, it won't affect your normal life.
If you really want to try high-risk investments, I recommend adopting an 'entertainment account' strategy: set up a separate small account, clearly stating that this money is for 'playing,' and if it is lost, you won't feel heartbroken.
5. Preserve your capital and wait for the next opportunity.
In the crypto world, surviving is more important than anything. A bull-bear cycle usually lasts 3-4 years; as long as you preserve your capital, there will always be another opportunity.
My risk control bottom line is: any single investment loss reaching 15% triggers a forced stop-loss. This sounds simple, but executing it requires overcoming human weaknesses—reluctance to admit mistakes.
Diversified investment is a free lunch. Do not put all your eggs in one basket; you can allocate different types of assets: value storage types (like BTC), platform utility types (like ETH), stablecoins (like USDT), etc.
At the same time, choose compliant and reliable trading platforms to ensure basic security. It is recommended to transfer large assets to personal hardware wallets; mastering the private keys is truly mastering the assets.
Summary: Surviving in the crypto world, mindset determines success or failure.
Over the years, I have seen the most successful investors are not those with the best technical analysis but those with the most stable mindset and strict discipline.
Investing in the crypto world is not just a technical contest but also a test of human nature. Establish a suitable investment system for yourself and stick to it; this is more important than chasing every market hotspot.
I hope my experience can help you avoid detours. Remember, in this market, living long is the key to laughing last. Follow Ake to learn more first-hand information and accurate points of crypto knowledge, becoming your guide in the crypto world; learning is your greatest wealth!
