Core Investment Strategies in the Cryptocurrency World#牛市 #熊市 (Using BTC as an anchor, light on imitation/heavy on risk control)

Core principle: Generate profits from trends during bullish markets, from chips during bearish markets, avoid full leverage and chasing highs during bullish periods or panic selling during bearish periods, strategies are completely opposite, meeting different core needs according to market rhythm.

Bullish Market Investment Strategy: Follow the trend, lock in profits, avoid bubbles

Main goal: Master the trend for profit, prioritize taking profits, do not chase the peak, avoid bubble risks later

1. Positions and assets: Light and diversified positions (no more than 20% in a single asset), mainly BTC/blue-chip coins (ETH/BNB etc), small positions to try popular routes (no more than 10% of total positions), avoid meme coins/trash coins;
2. Buy and hold: Buy during corrections (do not chase highs), build positions gradually, focus on holding, avoid trading actively (avoiding losses during bullish markets due to small corrections being more damaging);
3. Take profits and risk management: Set tiered stop profits (increase by 30% take 20%, increase by 50% take 40%), keep basic positions for the main upward wave, remaining positions follow the rise with increasing stop losses; firmly eliminate leverage, at the end of bullish markets (everyone talks about coins, trash coins rise evenly), reduce positions below 30%, even empty positions;
4. Operational prohibitions: Do not chase rising assets with good potential, do not follow the last peak, do not believe in narratives like “only rising without falling.”

Bearish Market Investment Strategy: Against the trend, preserve capital, seek cheap chips

Main goal: Protect capital as the top priority, buy quality chips at low prices, be patient for bullish markets, avoid buying midway during a rising market on a hill

1. Positions and assets: Extreme contraction, cash is king (cash/stablecoin 60%-80%), only use 20%-40% of positions to buy BTC/ETH (leave all imitation coins, as during bearish periods imitation coins can drop more than 90%);
2. Buy and hold: Buy gradually as prices fall, the more it drops the more you buy (do not go all-in immediately), set positions based on percentage drops (for example, if BTC drops 10% buy 10%, if it drops 20% buy another 10%), after building positions, stay put and wait for the bottom, avoid short-term trading (bearish rebounds often deceive);
3. Risk control and stop loss: No bullish market during bearish periods, if the price breaks through key support (e.g., previous lows), immediately stop loss and exit positions, return to cash; avoid leverage/contracts, because during bearish periods small fluctuations can cause margin calls;
4. Additional operations: Can perform routine investments in BTC/ETH (fixed amount each month), average costs, ignore short-term fluctuations, wait for bullish trend to come.

Transition Period Strategies Bull-Bear (Market Volatility): Light positions, observation, trial and error

Main characteristics: Prices lack clear direction, fluctuate up and down, up and down trends repeat

1. Control positions at 10%-20%, only buy/sell high and low BTC/ETH, take profits during good markets;
2. Do not chase highs or bottom out, sell on upward corrections, buy on downward corrections, set tight stop profits and stop losses;
3. Focus on macro signals (Federal Reserve policies) and BTC trends, wait for a clear trend before increasing positions.

General main rules (applicable during both bullish and bearish)

1. Never fully commit positions, always keep cash/stablecoins to handle unexpected events;
2. Do not touch assets you do not understand, avoid air coins, do not participate in Ponzi schemes;
3. After profits, withdraw main capital first, use gains for trading, maintain mental and capital health;
4. Do not trade based on rumors, focus on trends and fundamentals, the market is always right.