1. Strict stop loss and position cutting
Set an automatic stop loss line of 8%-12% when the price retraces to avoid the risk of a flash crash after a unilateral surge. For example, in March 2024, Bitcoin broke through $69,000 and then plummeted by 14.5%, causing more than 300,000 people to lose $1.19 billion. Dynamic stop-loss can lock in profits.
2. Break the FOMO emotional trap
Reject the anxious pursuit of "fear of missing out", as Bitcoin often experiences a deep correction after reaching a new high. Referring to the fact that it rose to $93,000 in November 2024 and then quickly fell below $89,000, the strategy of "reducing positions in batches by 5% after breaking through the previous high" was adopted.
3. Stay away from highly volatile altcoins
During the period when mainstream coins hit new highs, Meme coins (such as PEPE and SHIB) were often manipulated to pull up the market and then plummeted. In March 2024, SHIB soared 330% in a single week and then fell back 40%. It is recommended to configure 70% Bitcoin + 20% stablecoin + 10% Ethereum.
4. Disable high-leverage contracts
Historical data shows that the probability of liquidation with over 50x leverage during extreme fluctuations reaches 92%. Beginners should prioritize spot trading. If opening contracts, limit leverage to within 5x and enable 'Auto Liquidation on Insufficient Margin'.
5. Anchor on-chain data decision-making
Monitor net inflows to exchanges (whale to coin warning), ETF fund flows (such as BlackRock's IBIT daily trading volume breaking records). Reduce positions to below 50% 30 days before key events like halving to avoid periodic volatility risks.
