Some people have been in the crypto space for so long, yet still don’t know how to manage their positions! Do it well, and let’s start the class! "Position Management Method": You need to divide your asset pool into four pools:

The first is the cold wallet, mainly used to store coins, creating various obstacles that make it difficult for you to access, placing core assets inside, which will account for about 60% or more of the assets.

The second is the warm wallet, which is mainly used to manage assets and can provide cash flow in a relatively safe and stable manner, allowing us to maintain a stable mindset in extreme pessimistic situations, accounting for about 20% to 30%.

The third is the hot wallet, mainly used for consumption, using speculative assets to test and experiment with products, providing experience for future judgments on whether an asset is good, accounting for a few percentage points of the asset scale, or even less. If this wallet really grows in size due to speculative consumption, immediately transfer it to the warm wallet or the corresponding cold wallet.

The remaining one is the fiat wallet, where there is a small principle called the 4% principle: the asset scale in the fiat wallet should be equal to 4% of annual expenses. Assuming the previous wallets encounter unexpected situations, the interest from fixed deposits or government bonds generated by the fiat wallet can basically cover daily living expenses, which can be considered as living reserves and isolated assets.