Losing money in the cryptocurrency world is often not because the project is bad, but because—your position got blown up.
When the market fluctuates, going all in, chasing after rises, cutting losses on drops, ultimately leads to zero balance and a shattered mindset.
In fact, regardless of whether you are a short-term trader or a long-term holder, position management is the key ability that determines whether you can survive the bull and bear markets.
The following points are the experiences I summarized after countless missteps:
1️⃣ Never easily go all in
The market is never short of "black swans." No matter how optimistic you are, always reserve 30%~50% of your position for unexpected events or buying opportunities. Keeping part of your position = keeping options open.
2️⃣ Build positions in batches, don’t go all in at once
Don’t go all in just because you “predicted correctly” once; split your position into several price ranges and buy slowly. This can average your costs and prevent getting stuck by chasing highs.
3️⃣ Reduce your position appropriately after a rise, take profits
There’s no need to aim for selling at the highest point; even realizing a portion of your profits can give you more peace of mind in holding your assets. Paper gains ≠ real profits.
4️⃣ Set profit-taking and stop-loss levels to reduce emotional trading
Plan ahead for “how much to sell on a drop / how much to exit on a rise,” and don’t make decisions while watching the market. Position discipline is your “protection mechanism” in extreme market conditions.
5️⃣ Diversify your position structure, don’t put all your eggs in one basket
Going all in on one coin = risking everything. A combination of mainstream coins (BTC/ETH) + narrative sector coins + stablecoins provides resilience against volatility.
Choosing the right coins is important, but if you can’t manage your positions, you will never reach the end.
You can make money in a bull market, but a bear market is the true test of position management.
If you want to survive through cycles, first learn to “last longer.”
Looking back, the cryptocurrency world has never lacked opportunities; what’s missing is the ability to understand and manage yourself—"you."
Stop fantasizing about doubling your investment or making it big in one step; those who truly reach the end are not the ones with the fiercest operations, but those who can manage their positions, maintain a steady rhythm, and endure the market fluctuations.
Uncle Nan, you don’t have to step in the same pitfalls I did!
