Five years ago, when I rushed into the crypto world with a principal of 50,000, I couldn't even fully understand the K-line chart. Watching others share their profits while I repeatedly got cut in the chase of rising and falling prices, I lost my capital down to just 20,000 in half a year. It wasn't until I accidentally developed a set of diversified investment strategies that I slowly crawled out of the mire — today, my account balance is fixed at 20 million. Looking back, what I should be most grateful for is not luck, but the experiences gained from those falls.

The method that I uphold as a standard is actually quite simple:

Fund division: Split the available capital into five equal parts. For example, if you have 10,000 dollars, divide it into 5 parts of 2,000 dollars, using only one part for each trade.

Initial position building: Use the first part of the funds to buy the selected cryptocurrency at the current market price.

Downward replenishment: If the cryptocurrency price drops by 10% from the purchase price, immediately invest the second part of the funds.

Upward profit-taking: When the cryptocurrency price rises by 10% from the cost of holding, sell one part of the corresponding position.

Cyclic operation: Repeat the replenishment and profit-taking steps until all funds are invested or all positions are cleared.

When using this strategy, the most noticeable change is a stable mindset. Even if the price drops after purchase, there’s no need to panic — the drop is an opportunity for replenishment. If calculated carefully, by the time all five parts of the funds are used, the cryptocurrency price has dropped by at least nearly 50%, but in the crypto market, apart from extreme waterfall scenarios, few cryptocurrencies will drop that quickly, which provides a buffer for rebounds.

There's no need to worry about profits either, as every profit-taking can safely secure a 10% gain. Taking an example of a total capital of 100,000, with each part being 20,000, each sale can earn 2,000 yuan, and the power of accumulating small amounts is beyond imagination.

Of course, this method also has its shortcomings: a 10% fluctuation is not small, and sometimes it takes a long time to trigger a trade, leading to idle funds or long-term occupation by a single cryptocurrency.

However, this problem has a solution: first, choose more stable mainstream cryptocurrencies to reduce the triggering threshold; second, when funds are idle, invest them in Binance's financial products, which can earn some extra income without delaying the ability to adjust positions at any time. This way, the waiting time also turns into an opportunity to earn money.

If you are also troubled by frequent missed opportunities or being stuck in positions, you might as well try this diversified investment strategy. Want to know how I specifically select cryptocurrencies and set warning lines? Follow @Air 安叔 , and next time I will break down the practical details to help improve your capital efficiency.