Having immersed myself in the crypto space for 8 years, from initially being a novice with a simple mindset to gradually understanding market patterns, my biggest gain isn't how much I've earned but truly grasping what real risk management means.

From 2020 to 2024, starting with limited capital, I accumulated a 8-figure portfolio through strict investment discipline. The core of this process is a repeatedly validated "phase allocation method"—simply put, dividing funds into three stages of investment, each corresponding to different market conditions and psychological expectations.

Taking Bitcoin as an example. Suppose you have a principal of 12,000. In the first stage, invest 30%, which is 3,600. The most important part of this step is mindset building. Many newcomers tend to go all-in quickly, and a single fluctuation can cause sleepless nights. The advantage of small positions is that risk remains within your control, allowing for calm judgment. Every deep trap of being stuck has taught me this lesson.

The second stage accounts for 40%, which tests patience the most. When the market is rising, do not chase; wait for a pullback before gradually adding positions. Every time the market drops by 10%, add 10% of your planned funds. The benefit of this approach is lowering the average cost and making your mindset more stable. Last year, when Bitcoin was declining, there was a lot of panic selling around me, but following the predetermined rules to add positions meant that, although there were fluctuations, I had confidence—because every step was pre-planned.

The final 30% is the most critical and also the easiest to make mistakes on. This part should only be invested after the trend is fully confirmed and stabilized. Many people are afraid of missing out, so they go all-in before the trend is clear, ending up as bagholders. I too have been impatient and added positions prematurely, resulting in a three-month hold. That lesson made me more cautious about the "final strike."

This method may seem simple, but it's this "simplicity" that helps resist greed and fear. The crypto market always has people chasing shortcuts, and the dream of becoming rich overnight always exists. Those who can truly survive are often those willing to take it slow and follow the rules.

Mindset during market adjustments is far more important than technical analysis. While most panic and make impulsive decisions, disciplined investors are already planning their moves. When the market rebounds, this composure will show in your account growth. Sticking to phased investments, staying calm, avoiding greed, and maintaining discipline—this isn't the smartest method, but it’s the easiest to stick with and the hardest to fail.