In the cryptocurrency market, the different volumes of funds determine completely different operating logic.
Small funds can still have the chance to start over after a liquidation;
But once large funds make a mistake, it often results in serious losses, or even being forced to exit the market directly.
I have seen many cases: accounts with hundreds of thousands or even millions of dollars still operate contracts with a "small fund gambler's mentality." The outcome is not a V-shaped reversal of the fund curve, but a steep decline.
For large funds, the most taboo is always: emotional trading and blind position increases.
No matter how strong the risk resistance is, it cannot withstand the market's ruthless unilateral fluctuations. Especially in a bull market, a sudden large bearish candle can be enough to break through defenses.
So how should large funds be managed? I have summarized four core principles:
1️⃣ Position Splitting
Large funds must never "go all in." The correct approach is: probe to build a position → increase positions in batches → always leave enough liquidity and flexibility.
2️⃣ Only trade highly liquid assets
A position of several million dollars must not be placed on obscure coins. Mainstream coins (BTC, ETH) are the suitable stage; otherwise, buying and selling itself will become a risk.
3️⃣ Risk management comes before profit
Instead of pursuing the "perfect capture of the market," it is better to accept "relatively safe profits." For large funds, controlling risk > hitting the profit limit.
4️⃣ Sense of Timing
Small funds can afford to make frequent mistakes, but large funds must learn to "wait." When the real opportunity arises, one shot is enough to cover a period of gains.
Many people think that "large funds make money more easily."
The reality is: the larger the money, the greater the temptation and the higher the risk.
Those who can survive in the market for a long time are not the ones who operate most aggressively, but those who understand patience and self-discipline the best.
