This article is a practical guide on how to profit and avoid risks during a cryptocurrency bull market. It elaborates on trading strategies and risk management methods from three core dimensions: portfolio structure, leverage usage, and on-chain trading.

1. Portfolio Structure

The construction of a portfolio needs to be adjusted according to the capital scale, but there are several core principles that must be followed:

Focus on high-quality collateral

  • It is recommended to focus on high-quality assets such as Bitcoin and $SOL;

  • Convert to stablecoins during volatile or bear markets;

  • In a bull market, use profits to supplement mainstream coin positions;

Dynamic adjustment strategy

  • Currently maintain an allocation close to 100% in Bitcoin and $SOL;

  • Gradually increase the proportion of stablecoins as the bull market cycle progresses;

2. Leverage Usage Guide (Recommendations for Beginners)

Set aside traditional perceptions about leverage on social media and view leverage as a tool to improve capital efficiency.

Differentiated Treatment

  • Leverage strategies for mainstream coins and small-cap coins should be completely separate;

  • Using leverage on $SOL is completely different from using leverage on a token with a market cap of 500M;

Basic Principles

  • The total leverage for small-cap coins should not exceed 1x (e.g., $100,000 in $SOL as margin, altcoin longs should not exceed $100,000);

  • Mainstream coins can use 2-5x leverage at specific times;

  • The higher the leverage multiple, the earlier the profit-taking should be;

  • Never make ‘all-in’ trades; always leave yourself an exit;

3. On-Chain Trading Strategies


Pursue Excess Returns

  • Focus on opportunities that may bring huge returns rather than daily profits;

  • Do not overly pursue the accumulation of small transaction profits (as Warren Buffett said, diversification is the protection of the ignorant);

Position Management

  • Avoid full position trading;

  • Adopt a step-by-step reduction strategy;

  • For example: sell 10% at 50M, then sell another 10% at 100M, and so on;

Risk Control

Volatility Management

  • Be mentally prepared for a 50-70% pullback;

  • 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, one can achieve considerable profits during a bull market while effectively controlling risks. Remember: volatility is an important source of profit in the cryptocurrency market, and learning to coexist with it is the key to success.

[Disclaimer] The market has risks; investment requires caution. This article does not constitute investment advice, and users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Invest at your own risk.

  • This article is reproduced with permission from: (PANews)

  • Original author: David G, Moonshot Consultant

‘Avoid Bankruptcy! Experts Reveal 3 Major Bull Market Strategies, How to Allocate Assets and Use Leverage Wisely?’ This article was first published on ‘Crypto City’

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