Article reprinted from: Yuliya
Written by: David G, Moonshot Consultant
Compiled by: Yuliya, PANews
This article is a practical guide on how to profit in the cryptocurrency bull market while avoiding risks. It elaborates on trading strategies and risk management methods from three core dimensions: portfolio structure, leverage usage, and on-chain trading.
I. Portfolio Structure
Portfolio construction needs to be adjusted according to capital size, but there are several core principles to follow:
Focus on high-quality collateral
It is recommended to focus on high-quality assets like BTC and SOL;
Convert to stablecoins in volatile or bear markets;
In bull markets, use profits to supplement mainstream coin positions;
Dynamic Adjustment Strategy
Currently maintain an allocation close to 100% in BTC and SOL;
As the bull market cycle progresses, gradually increase the proportion of stablecoins;
II. Leverage Usage Guide (Beginner Recommendations)
Set aside traditional perceptions of leverage on social media, and view leverage as a tool to enhance capital efficiency.
Differentiate Treatment
Leverage strategies for mainstream coins and small-cap coins should be completely separate;
Using leverage on SOL and using leverage on tokens with a market cap of 500M are entirely different trades;
Basic Principles
Total leverage for small-cap coins should not exceed 1x (e.g., $100,000 SOL as margin, altcoin long should not exceed $100,000);
Mainstream coins can use 2-5x leverage at specific moments;
The higher the leverage, the earlier you should take profits;
Never make trades that risk your entire fortune; always leave yourself an escape route;
III. On-chain Trading Strategies
Pursuit of Excess Returns
Focus on opportunities that may bring huge returns, rather than daily profits;
Do not overly pursue the accumulation of small trade profits (as Warren Buffett said, diversification is the protection of the ignorant);
Position Management
Avoid trading with a full position;
Adopt a tiered reduction strategy;
For example: sell 10% at 50M, then another 10% at 100M, and so on;
Risk Control
Volatility Management
Be mentally prepared for 50-70% pullbacks;
View volatility as an opportunity rather than a threat;
Maintain emotional stability and avoid panic-driven decisions;
Summary
Successful trading depends more on psychological factors; the biggest opponent is yourself. Through reasonable portfolio allocation, cautious leverage usage, and correct on-chain trading strategies, you can achieve considerable returns while effectively controlling risks in a bull market. Remember: volatility is an important source of profit in the cryptocurrency market, and learning to coexist with it is key to success.
