The people in the crypto circle who die very quickly are often not because they misread the market. Honestly, everyone has times when they get it right. Where's the problem then? It all comes down to position sizing.

You and I have both made accurate predictions before. We've sensed the market trend and caught technical signals. But why does the account never grow, and instead shrink little by little? The answer is deeply rooted—

It's you who ultimately go all-in on altcoins and get wiped out to zero. When the bull market arrives, you miss out, hold a small position just to watch the show, and regretfully hit yourself for missing the boat. During a bear market, you're holding a full position deep in losses, afraid to move.

Luck can't be blamed. What truly threatens your life is position management. In the crypto world, there's no "guaranteed win," only "survivors." The secret to navigating bull and bear cycles and protecting your principal lies in position management.

Remember these three bottom lines—

**First: Principal comes first, profits come second.** Every trade's loss must be tightly controlled, not exceeding 2%-4% of your principal. For example, with 100,000 yuan, a single loss over 4,000 yuan means you stop. Preserving your principal is the only way to turn things around.

**Second: Crypto volatility can't be compared to the stock market.** Annualized volatility is 2 to 3 times higher than stocks, so your position must be more conservative—at least 30% or more. Still operating with stock market logic? That's like standing naked in the surf.

**Third: When bull or bear markets arrive, your positions must shift accordingly.** During a bull market, you can hold 50%-70% of your position to profit. In a bear market, you must cut back, keeping within 30% and holding cash. Mainstream coins, altcoins, and leveraged positions should be planned separately—don't mix them up.

Want to survive a few more years as a beginner? Follow these five tips—

**Tip 1: Three-stage position building method.** Divide your principal into three parts. Use 10% to try out a position and explore. Once the trend is clear, add another 20%. Keep the remaining 20% in reserve for emergencies.

**Tip 2: Allocate based on risk level.** Mainstream coins like Bitcoin and Ethereum should not exceed 25%. Altcoins? Never allocate more than 5% to a single coin. For leverage, keep the principal under 10%, and use no more than 10x leverage.

**Tip 3: Use stop-loss to reverse-engineer your position size.** First, set a fixed stop-loss, e.g., 6%. Then, calculate your position size using the formula: "Maximum loss amount divided by stop-loss percentage." This helps prevent being wiped out by stop-loss hunts.

**Tip 4: Follow the rhythm of bull and bear markets.** During a bear, limit trial positions to 5%-8%, accepting small losses. In early bull phases, increase to 50%-70%. In late bull stages, quickly reduce to 30% plus cash, waiting for the next opportunity.

**Tip 5: Don't let emotions control you—plan ahead.** Predefine entry points, stop-loss levels, and position limits. The maximum position for a single coin is 20%. After three consecutive losses, stop trading, review your strategy, and avoid reckless moves.

The crypto market is full of opportunities. What’s truly missing is having bullets in your pocket when opportunity knocks. Surviving has never been a matter of choice, but a skill.