1. Core logic: Use 'anti-human' operations to counter market volatility.
"If you still can't understand this, uninstall it quickly!!!"
Core principles:
1. Never predict market trends: Give up 'buying the dip and selling the peak', replace subjective judgment with mechanical rules;
2. Use time to exchange for space: Cover short-term volatility risks through ultra-long-term holding (over 5 years);
3. Cut losses, let profits run: Use stop-loss to control single loss, and use long-holding to amplify trend gains.
2. Operational steps (4 steps to lock in risks)
🔥 1. Capital allocation: Never use 'emergency money'.
- Iron law:
✅ Only use spare money that you won't need within 5 years (like year-end bonuses, retirement reserves);
✅ Single asset position ≤ 10% of total assets (e.g., total assets of $500,000, at most invest $50,000 in BTC).
- Logic: Even if BTC drops 80%, it has no impact on your life, avoiding 'forced liquidation'.
🔥 2. Position-building method: Never 'go all in'.
- Dollar-cost averaging:
- Every 10th of the month, consistently buy 1,000 yuan of BTC for a year (total investment of 12,000 yuan);
- Function: Regardless of price highs or lows, buy an equal amount of money every month to automatically lower the average price (e.g., buy 0.1 coins at high prices, buy 0.3 coins at low prices, average price = total amount / total coins).
- Bottom-fishing method (to be used when prices are falling):
- If BTC drops 30% from the current price (assumed $30,000) to $21,000, increase the position by $10,000 in one go;
- Drop another 30% to $14,700, then add another $10,000 (total additions not exceeding 50% of initial capital).
🔥 3. Stop-loss and take-profit: Never be 'greedy and hold on'.
- Stop-loss line:
- Starting from the average purchase price, if the loss exceeds 20%, unconditionally stop-loss (e.g., average price $30,000, sell half if it drops below $24,000, clear out if it drops below $20,000);
- Exception: If you can confirm it's a 'bull-bear cycle correction' (e.g., the overall market crashes, and it's not a specific negative for BTC), you can pause the stop-loss and 'play dead'.
- Take-profit point:
- Hold for over 5 years, and sell 50% if the price doubles from the historical peak (e.g., if the previous high was $60,000, sell at $120,000);
- Continue to hold the remaining 50% as a 'faith position', targeting a price of $1 million (corresponding to a Bitcoin market value of approximately $20 trillion, close to the total market value of gold).
🔥 4. During the holding period: Never look at short-term price fluctuations.
- Operational taboos:
❌ Do not download market apps, do not pay attention to daily news (99% of the news is noise);
❌ Do not discuss BTC prices with anyone to avoid being influenced by others' emotions;
- Alternative action:
✅ Review your holdings once a year on December 31 (only record the quantity, do not look at the amount);
✅ Write down the BTC private key on paper, lock it in a safe, and forget its existence.
3. Coping with extreme situations (survive even if the sky falls)
🚨 If BTC drops to $1,000 (an extreme situation before going to zero)
- Operation:
1. Use the last 10% of your reserve funds (e.g., total investment of $50,000, remaining $5,000) to buy;
2. Use all remaining funds to buy gold ETFs (like domestic 518880) or USD assets to diversify risks;
3. Keep working to earn money, continue dollar-cost averaging every month (at this point, BTC may be cheaper than 'picking up money').
🚀 If BTC rises to $100,000 (meeting the target in advance)
- Operation:
1. Sell 70% of your position to cash out and improve your life (e.g., invest $50,000 to make 7 times, turning into $350,000, use $245,000 to buy a house/car);
2. Continue to hold the remaining 30%, targeting a price of $1 million, using 'free money' to seek larger returns.
4. Frequently Asked Questions (answers that disrupt conventional thinking)
❓ Q: Why not just hold on without stop-loss?
✅ A: Stop-loss is to prevent 'permanent loss' (e.g., if the project crashes), but BTC, as the strongest consensus cryptocurrency globally, is likely to weather bull and bear markets; long-term bearishness is the biggest risk.
❓ Q: Is it too slow to dollar-cost average for a year, can I buy directly?
✅ A: 90% of people will panic and liquidate due to a downturn after going all in; dollar-cost averaging is the best tool against human nature, forcing you to 'buy more as it drops'.
❓ Q: What if I'm still at a loss after 5 years?
✅ A: If BTC has been falling for 5 consecutive years, it means the cryptocurrency industry has collapsed. At this point, your stocks, funds, and other assets are likely also plummeting. Diversifying investments + the principle of spare money can ensure you 'survive' until the next cycle.
5. Ultimate mantra (stick it on your wallet)
Invest spare money regularly, buy on dips, hold on when it rises, cut losses when it breaks, and hold long for wealth.
Essence: This is not a strategy to 'make big money', but a survival rule to 'ensure you survive in the cryptocurrency world'. Use the simplest methods to earn the most certain money.
