Surviving in the Crypto World: 5 Core Principles to Help You Stand Firm

The crypto market is highly volatile, and to survive for the long term, the key is to maintain a baseline of 'stability.' The primary principle is to protect your principal — this is the foundation of all operations. Many people are blinded by the short-term high returns, ignoring risks and chasing prices, ultimately leading to a significant reduction in their principal, with no chance of recovery. In fact, profit does not need to be sought quickly; it is crucial to restrain greed. There is no need to focus on short-term high profits; steadily earning small amounts can accumulate over time.

Position management is of utmost importance. Don't blindly diversify your investments; otherwise, your energy may not keep up, and you may lose track of what’s important. You also shouldn’t go all-in or heavily invest. Going all-in without a buffer can lead to severe losses during fluctuations, and a single mistake in a heavy investment can wipe out previous gains. Additionally, avoid making ineffective trades. Frequent operations not only incur transaction fees but also increase losses due to misjudgments.

The timing for entering, exiting, and setting stop-losses must also be well-controlled. Before entering, don't let market sentiment sway you; analyze first and then act. When exiting, be decisive if you see a trend change or reach your target; don’t hesitate over missed opportunities. Stop-losses are a bottom line; once you set a stop-loss level, strictly enforce it. Don’t hold onto the hope of 'waiting a bit longer for a rebound,' as small losses can turn into large ones due to hesitation.

There are never guaranteed opportunities in the market; the law of extremes is ironclad: when prices peak, they will fall, and when they hit rock bottom, they will rise. If there are no suitable opportunities, don’t force a trade; missing out is not scary, but entering blindly can lead to pitfalls. Wealth often comes from patiently waiting, not from frequent trading. Waiting for a clear trend before acting is much more reliable than rushing to trade. Furthermore, after achieving your goals, it’s wise to take a break to conserve energy; don’t be greedy and continue trading. Even if your mindset is unstable, you must stick to your strategy; this is how you can align knowledge and action, allowing you to navigate the crypto world more steadily. @宇观币圈 #美联储降息预期 #巨鲸动向