Eight years of ups and downs in the cryptocurrency world, the most valuable thing is not how much I earned, but that I didn't get wiped out by any major wave.
On that cold winter night in 2018, I stared at the remaining balance of 180,000 in my account, my fingers trembling on the keyboard. Just three months ago, this number was 800,000, and I had even chosen the layout of a new house.
My friends around me all know that I play with cryptocurrencies. Some think I am a 'master', while others believe I am gambling. But only I am clear that what has supported me all the way is not some profound and mysterious technology, but a few simple principles that many people disdain.
Today, I want to talk about how, as an ordinary person, I started with 50,000 yuan in eight years, not only survived but also achieved steady asset growth.
Rule one: Capital is life, and profit is just a bonus.
When I first entered the crypto world, I also made all the mistakes that new hands make—always thinking that 'a gamble' could lead to a quick turnaround. During the bull market in 2017, I saw someone doubling their money in a few days, and I was itching to join, but I still gritted my teeth and told myself: 'Survive first, then talk about making money.'
I set a rule for myself: only invest spare money and never touch funds needed for living expenses. At that time, I had 50,000 yuan, which was supposed to be the money for a car replacement. I thought, even if I lose it all, I can just drive my old car for a few more years.
What really made me grasp this principle was in 2021. At that time, a friend from a project team recommended a '100% profitable' coin to me. I studied the white paper and found logical flaws, but due to the hot market, I still entered with 20,000 yuan of spare money—when it rose by 50%, I withdrew my principal, letting the remaining profit fluctuate.
So, guess what happened? That coin later dropped by 90%, but because I had already withdrawn my principal, I still made a few thousand yuan. This incident made me understand: in the crypto world, surviving is more important than anything else.
Rule two: Only earn money that I can understand, and refuse FOMO temptations.
The least lacking thing in the crypto world is opportunity, but what is most lacking is the ability to distinguish between true and false opportunities. I have seen people use their parents' retirement money to buy coins that they don't even understand the white papers of. When I asked him why he bought it, he said, 'Recommended by the big shots in the group.'
My principle is simple: if I don't understand a project, even if it skyrockets, it has nothing to do with me. In 2019, when IEOs were hot, there was a lot of promotion everywhere saying 'platform endorsement must rise.' Many friends around me rushed in, but I remained still.
It's not that I am aloof; it's that I have gone through the materials of those projects and none of them could clearly explain what problem they actually solved. Sure enough, most of the IEO projects later went to zero.
Conversely, before the DeFi summer in 2020, I had spent several months immersing myself in forums studying, getting to know the codes and economic models of several leading projects clearly. Only after confirming the logical closed loop did I cautiously participate. Although I didn't catch all the gains, every penny I earned was solid and reliable.
Rule three: Position management is an art, and also a survival skill.
Many people get caught up in 'when to buy at the lowest and when to sell at the highest.' I think this is a false proposition—the market cannot be predicted at all. What really allows you to survive the transition between bull and bear markets is scientific position management.
I will share my '433 position management method' that I have used for five years:
40% of the funds are allocated to mainstream coins like BTC and ETH as a 'ballast.' Their volatility is relatively small, and they are more resilient in a bear market.
30% allocation to public chain and infrastructure projects with actual application scenarios—these are the 'engines' during a bull market.
20% to try new tracks and potential projects, even if I lose, it won't hurt my vitality.
The final 10% is kept as cash, waiting for extreme opportunities. The crypto world is not lacking in crashes; having cash on hand keeps your heart calm.
More importantly, the position of a single coin must not exceed 15% of the total capital. This way, even if one or two projects are misjudged, it won't be a fatal blow.
Only by surviving the bear market can we welcome the next spring.
In the current market environment, many people feel confused and panicked. However, based on my eight years of experience traversing bull and bear markets, the bear market is actually the best time to lay out strategies.
Be greedy when others are fearful, and be fearful when others are greedy—this saying everyone can say, but very few can truly do it.
I'm not a crypto expert, just an ordinary player. What I can share is this set of methodologies that allow me to survive and steadily grow. The crypto world is not a casino; the real winners are not the ones who dare to gamble the most, but those who can control risks the best.
Surviving is more important than anything else. As long as the principal is there, opportunities will always be present.
Follow Xiang Ge, let him guide you to understand more first-hand information and accurate points in the crypto world, becoming your navigation in the crypto world. Learning is your greatest wealth!#巨鲸动向 #加密市场观察 $ETH
