Many people ask me how to effectively manage risk in the crypto market. The core idea is this grid trading logic:
**What to do in a downtrend** If the price drops 10%, observe first; if it falls to 20%, add a small position (increase by 10% of your holdings); if it continues to drop to 30%, actively add more (increase by 30%); if it drops to 40%, add again (another 30%). If it plunges below 50%, that’s the real buying opportunity (increase by 50%).
**How to operate in an uptrend** When the price rises 10-20%, do nothing; when it reaches 30%, start to lightly take profits (sell 10%); at 40%, sell 20%; at 50%, sell 30%; at 60%, sell 40%. If BTC doubles directly, it’s time to cash out all profits.
This logic works especially well for mainstream coins like Bitcoin and Ethereum. The core idea is to buy more at low levels, take profits at high levels, and let time and volatility work in your favor. The key is execution—don’t let short-term market fluctuations shake your discipline.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
10 Likes
Reward
10
6
Repost
Share
Comment
0/400
DAOdreamer
· 11h ago
It sounds good, but how many people can actually implement this? I admit there's no problem with the logic, but the key is that when it drops to 30%, the mentality collapses, and there's no more memory of any add-on discipline.
View OriginalReply0
DegenWhisperer
· 11h ago
That's true, but very few people can actually implement this system; most are still driven by emotions.
View OriginalReply0
IntrovertMetaverse
· 11h ago
It sounds good, but when it really drops by 50%, your hands start to shake. Execution is worth much more than strategy.
View OriginalReply0
GateUser-afe07a92
· 12h ago
Sounds good, but how many people can truly stick to this approach? When it drops 30%, their hands start to tremble.
View OriginalReply0
tokenomics_truther
· 12h ago
It's easy to say, but hard to do. Who wouldn't be scared when it truly hits the 50% mark?
View OriginalReply0
pumpamentalist
· 12h ago
It's easy to say, but hard to do. How many people can truly stick to this logic?
Many people ask me how to effectively manage risk in the crypto market. The core idea is this grid trading logic:
**What to do in a downtrend**
If the price drops 10%, observe first; if it falls to 20%, add a small position (increase by 10% of your holdings); if it continues to drop to 30%, actively add more (increase by 30%); if it drops to 40%, add again (another 30%). If it plunges below 50%, that’s the real buying opportunity (increase by 50%).
**How to operate in an uptrend**
When the price rises 10-20%, do nothing; when it reaches 30%, start to lightly take profits (sell 10%); at 40%, sell 20%; at 50%, sell 30%; at 60%, sell 40%. If BTC doubles directly, it’s time to cash out all profits.
This logic works especially well for mainstream coins like Bitcoin and Ethereum. The core idea is to buy more at low levels, take profits at high levels, and let time and volatility work in your favor. The key is execution—don’t let short-term market fluctuations shake your discipline.