Survival Rules in the Crypto World: Minimizing Losses is Gaining!
1. Stop Loss First
3% Stop Loss Rule: If a single loss reaches 3% of total capital, cut losses immediately, don’t fantasize about a rebound.
Case Study: In 2021, Luna went from $100 to zero, those who held on lost everything.
2. Only Trade Coins You Understand
Beginner's Pitfall: FOMO into meme coins, resulting in losses.
Experienced Trader's Strategy:
Main holdings in Bitcoin and Ethereum (stable);
Altcoins ≤ 20% (risk management).
3. Fund Management
Position Allocation:
Total holdings ≤ 30% (keep 70% cash for bottom fishing);
Single coin ≤ 5% (to avoid rug pulls).
Take Profit Strategy:
Sell half at a 50% increase (to secure principal);
Sell another half at a 100% increase (to lock in profits);
Hold core positions until the end of the bull market.
4. Trading Discipline
Three Iron Rules:
Only buy coins in the top 50 by market cap (avoid meme coins);
Start building positions after a 10% drop (don’t go all in);
Stop trading for 1 week after three consecutive losses (to avoid emotional trading).
5. The Key to Compounding is to Survive
Data: 30% annualized return, 13 times in 10 years; 50% annualized return, 57 times.
Prerequisites:
Maximum loss ≤ 15%;
Only use profits for additional investments;
Hoard coins in bear markets, cash out in bull markets.
Summary: Don’t be greedy, don’t leverage, don’t show off, surviving until the end is what makes you a winner!
