In the crypto world, those who die quickly are not wrong about the market, but are lost because of this one thing.

You’ve been right before, I’ve been right before,
But why do accounts always stay stagnant, or even keep shrinking?
The brutal and simple truth:
It’s you who go all-in and get wiped out in meme coins, it’s you who miss the bull market and break your legs on small positions, it’s also you who are fully invested in a bear market and stuck without a way out.
It’s not bad luck; it’s your positions that are threatening your life. In this circle, there are no invincible gods, only those who stay alive.
And position management is your only protective charm to survive through bull and bear markets.
Remember these three iron rules, don’t let your principal die before dawn:
1. Prioritize principal, profit comes second.
Always limit single trade losses to 2%-4% of your principal; for example, with a 100k dollar principal, stop trading if you lose more than 4,000 in a single trade. Keeping your principal alive is the only way to turn things around.
2. Respect volatility, refuse to force trades.
The annualized volatility in crypto is 2-3 times that of the stock market. Your position should be at least 30% more conservative than stock trading. Using stock logic in crypto is like recklessly rushing into a storm.
3. Adjust positions according to bull and bear markets, adapt flexibly.
In a bull market, hold 50%-70% positions to profit; in a bear market, reduce to below 30% to hold cash. Mainstream coins, altcoins, and leveraged positions should be planned separately.
Five secret tips for beginners to survive longer:
1. Three-stage position building: divide your principal into three parts—10% for testing the waters, 20% to add as the trend becomes clear, and 20% as emergency funds.
2. Allocate risk proportionally: mainstream coins (BTC/ETH) up to 25%, single altcoins no more than 5%, and leverage within 10x should not exceed 10% of your principal.
3. Use stop-loss to reverse engineer your position: first set a stop-loss (e.g., 6%), then calculate the maximum loss amount divided by the stop-loss percentage to leave enough buffer to avoid being stopped out.
4. Adjust cyclically: in a bear market, test positions with 5%-8% to control losses; early in a bull market, increase to 50%-70%; towards the end, reduce to 30% cash.
5. Abandon emotional trading: plan ahead, fix entry points, stop-loss points, and position sizes. Single-coin positions should not exceed 20%. After three consecutive losses, stop and review.
The crypto market is never short of opportunities; what’s lacking is your capital when you see those opportunities.
Surviving is not just a choice; it’s a skill.