Family! Ask me: "Why is it that when trading cryptocurrencies, I always make small profits and losses with mainstream coins, but when I buy smaller coins, I either double my investment or lose everything?" This question is particularly good, and the core reason is: the risk properties of mainstream coins and small coins are completely different, and the corresponding risk control methods are also worlds apart! Many people use the same method to trade all coins, resulting in all the money made from mainstream coins being lost in small coins. Today, as an 8-year crypto analyst, I will thoroughly explain how to formulate different risk control strategies for mainstream coins and small coins, so you can protect your principal in different fields!
First, let's talk about risk control for mainstream coins. Mainstream coins like Bitcoin and Ethereum have advantages such as large market caps, good liquidity, and relatively mild volatility. The risks mainly come from the macro environment and market trends, not malicious manipulation. Therefore, the core of risk control for mainstream coins is 'long-term layout + trend stop loss'. My approach is to treat mainstream coins as part of 'asset allocation' and build positions through regular investments, such as using 10% of my salary each month to buy Bitcoin, regardless of market fluctuations. This helps to average out costs and reduce timing risks. In terms of position size, the total position for mainstream coins can be increased to about 50%-60% of total funds, but individual coin positions should not exceed 15% to avoid excessive concentration.
The stop loss for mainstream coins doesn't have to be too aggressive. I generally use the 'trailing stop loss' method. For example, when the coin price rises by 20%, I adjust the stop loss to the entry price. This way, even if the market retraces, I can at least break even. If it rises by 50%, I adjust the stop loss to a position of 20% profit to lock in some gains. Additionally, try not to chase prices after a short-term surge in mainstream coins. For instance, if a mainstream coin rises by 30% in a week, the risk of entering at that time is extremely high. It's best to wait until it retraces to key support levels before buying, such as near the 10-day or 20-day moving averages, which allows for closer stop loss settings and reduces risk.
Now let's discuss risk control for small coins, which is also the most challenging aspect. The advantage of small coins is the potential for large price increases; they might rise several times in a day. However, the disadvantages are that they have small market caps, poor liquidity, and are easily manipulated by major players, making them extremely risky. A small misstep can lead to being 'cut by the leeks'. Therefore, the core of risk control for small coins is 'light positions + strict stop loss'. My personal principle is that the total position for small coins should never exceed 10% of total funds, and individual coin positions should not exceed 5%. Even if I lose everything, it won't affect the overall situation. When entering the market, it's best to start with a small amount, such as buying 1% of total funds, to see how the price trends and liquidity are. If there are no issues, then gradually increase the position; do not go all in at once.
The stop loss for small coins must be very strict; I generally set it at 10% of the entry price. This means if the price drops by 10% after buying, regardless of whether it will rise later, I will exit immediately without hesitation. Moreover, it's best not to trade small coins in the first hour after opening and the last hour before closing. These two time frames are when major players manipulate the market most frequently, leading to significant volatility. Additionally, be sure to avoid 'three no coins', which are coins without white papers, team information, or real projects, as these are mostly air coins, and buying them is like throwing money away. Also, profits from small coins should be realized in a timely manner; for example, if it rises by 50%, sell half, and if it rises by 100%, sell everything. Don't be greedy; many people end up turning profits into losses because they want to earn more.
To summarize, mainstream coins are 'stable players', and risk control relies on long-term layouts and trailing stops; small coins are 'aggressive players', and risk control relies on light positions and strict stops. Everyone should choose their track based on their risk tolerance. Newbies are advised to start with mainstream coins, mastering the risk control methods before trying small coins. If you find this article useful, brothers, follow me @链上标哥 so you don't get lost! I'll break down several risk control cases for mainstream and small coins, teaching you how to apply these methods in practice. Do you usually prefer trading mainstream coins or small coins? Share your thoughts in the comments, and I'll adjust the subsequent sharing content based on everyone's needs!
