The crypto world is a paradise for speculators, but there are many pitfalls to avoid.

The experiences of those who came before, be sure to read patiently; the entire article is important.

Crypto survival rules: the golden rules of position management and risk control

In the highly volatile cryptocurrency market, a widely circulated saying is worth deep reflection by every investor: "In a bull market, make money; in a bear market, make money; the greedy end up with nothing." A day in the crypto world is like a year in the human world; the wealth effect here is enticing, but the risks are equally staggering. How to survive and continue to profit in this market? The answer lies in scientific position management and risk control.


I. Position management: the cornerstone of steady profits

1. Pyramid scaling, avoid blindly chasing highs

Never enter the market with a full position all at once. Divide funds into 3-5 parts and use a pyramid scaling method: the lower the price, the larger the scaling amount. This way, you can achieve good returns when the trend is correct and control losses when judgments are wrong.

2. 5% principle, safeguard the bottom line

Single currency positions should not exceed 5-10% of total funds. Black swan events frequently occur in the crypto world; even the most promising projects can go to zero. Diversifying positions is the first priority for survival.

3. Positioning is inversely proportional to market sentiment

Reduce positions during market euphoria and gradually increase during market fear. When everyone is talking about cryptocurrency, it is often the time of highest risk; when no one is paying attention, opportunities may be brewing.

Risk control: preserve capital, never out of date

1. The 2% rule, living means having a future

Limit daily maximum loss to within 2% of total funds. Once this threshold is reached, immediately stop trading, calmly analyze, and then re-engage.

2. Cut losses, let profits run

Set reasonable stop-loss points (e.g., -15% to -20%), but do not take profits too early. Once a trend is established, it often continues for a period; selling too early may miss the main gains.

3. Leverage is a tool, not a money printer

Contract leverage should not exceed 3-5 times; high leverage is a shortcut to "rapid poverty." Remember, leverage amplifies not just profits but also risks.

4. Positioning is directly proportional to sleep quality

If your positions keep you awake at night, it indicates that your position is too heavy. Reduce positions to a level where you can sleep peacefully; investing should be a part of life, not everything.

II. Mindset management: the invisible foundation of investing

1. Reject FOMO, avoid becoming the bag holder

Missing an opportunity is always better than losing principal. The market always has opportunities; preserving capital allows you to seize the next opportunity.

2. Regularly review trades, do not become "chives"

Review trading records weekly, summarizing successful experiences and lessons learned. The crypto world evolves rapidly; if you don’t learn, you will be eliminated.