Many people treat crypto trading as gambling, but in fact, it’s more like a game of cognitive realization.

I still remember when I first entered the crypto world, holding 5,000 yuan in my pocket, not even understanding the basic logic of Bitcoin and Ethereum, and being completely clueless about altcoins. Seeing others’ profit screenshots, I thought this was a money-making machine, but reality hit me hard — I became a standard bag holder.

Chasing after so-called "hundredfold potential" altcoins, I stubbornly held on during the LUNA collapse, watching my account evaporate right before my eyes. After countless stop-losses and cutting losses, I finally realized a simple truth: surviving long enough in this market is far more important than making quick money.

Today, I want to share lessons learned through real losses, without any fancy theories — just practical experience from participants.

**Top Priority: Capital Management**

The biggest mistake newcomers make is wanting to "go all-in" as soon as they enter. I’ve seen too many accounts where a small market fluctuation causes a complete mental breakdown. The fundamental principle is simple: only invest disposable income.

If you have 100,000 yuan in savings, no more than 20,000 should be used for testing the waters; with a monthly income of 8,000, invest no more than 800 each month. Never use borrowed money, and avoid risking mortgage or car loan payments. Sufficient margin ensures a stable mindset.

How to allocate positions? My approach is called "Don’t go all-in, diversify your buys, and don’t over-accumulate":

**30% Core holdings** — Mainstream coins like Bitcoin and Ethereum, which act as the ballast of your portfolio, with relatively moderate volatility.

**50% Flexible portion** — Used for swing trading, capturing market opportunities. This part has a larger tolerance for errors.

**20% Emergency reserve** — Keep this money untouched unless a black swan event or special opportunity occurs.

Regarding stop-loss, this is another topic I must emphasize. I set a "5% mandatory stop-loss" — no matter how optimistic you are about a coin, if it drops to this level, you must exit. Trading based on emotions is often the root cause of losses.