2026-01-01 17:23:56

A friend invested 10,000 yuan into the crypto space last year and turned it into 5 million USD. This story gave me quite a shock. After carefully analyzing his approach, I realized that making money has never relied on secret formulas or complex strategies; it’s simply a set of straightforward principles repeated over and over.

Sharing these thoughts today, it might not sound very new, but honestly, this is the real stuff that can improve your win rate. In the cryptocurrency market, less than 5% of players can make stable profits. The difference between them and most others is not about having superior technical analysis skills, but rather—whether they have discipline and can control risk.

**Capital allocation is the prerequisite for survival**

I divide my funds into three parts, just like a battlefield with front, middle, and rear positions. The core position accounts for 50%, holding only top-tier coins like BTC and ETH, and just holding without trading; the trading position accounts for 30%, used for swing trading to seize medium-term opportunities; the reserve position accounts for 20%, usually idle, only used during market crashes and panic.

For every trade, I strictly follow the "1% rule"—never risking more than 1% of total capital on a single trade. Calculated this way, even if you make ten wrong calls, you still have 90% of your principal left, enough to wait for a real turnaround opportunity. The scariest thing in crypto isn’t getting the market wrong, but running out of bullets when the opportunity arrives.

**Trend is your only friend**

I’ve seen too many people trying to catch the bottom and sell the top, only to get beaten down by the market. Now I only believe in one thing: don’t guess the top or bottom, follow the trend.

It sounds easy, but it’s hard to do. But once you master this, you’ve already beaten most people. In the crypto market, execution and patience can truly beat intelligence.

BTC1.23%

ETH1.23%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

12 Likes

Reward
12
6
Repost
Share

Comment

0/400

SchrodingerPrivateKey

· 7h ago

It's the same 50-30-20 allocation method again. I've heard this at least ten times in the circle over the past two months haha. The numbers from 10,000 to 5 million sound great, but how many people are really willing to go all in? Execution is indeed important, but luck is never too much either. My problem is that I simply can't hold onto that 1%. Whenever there's a fluctuation, I want to add more. Talking on paper is easy; when a crash actually happens, I panic. That's the real person in the crypto world. Wow, this is the experience post of an old veteran. You can tell they've definitely learned their lessons. Everything they said is correct, but I still can't shake my short-term trading habits. Maybe I'll be ground down by the market for the rest of my life. Your friend is really ruthless, or maybe just lucky to catch the bull market. It's hard to tell which one.

View OriginalReply0

SchroedingerGas

· 10h ago

1. From 10,000 to 5 million, this guy is really on a cheat code. I feel like I'm listening to a success story. 2. What you said is correct, but isn't this the basic skill to survive? Most people fail at risk control and can't go further. 3. The 50-30-20 allocation sounds very refreshing, but in practice, it's easy to lose your mindset. Everyone wants to go all-in. 4. The 1% rule I've heard countless times. How many actually stick to it? The key is patience. 5. The strategy of bottom-fishing and top-selling has long been beaten by the market, but when it dips, I still can't help but want to buy at the bottom. 6. Talking about trends is easy, but in actual operation, you always want to go against the trend. Knowing is easy, doing is hard. 7. This theory remains relevant even after a hundred years. The problem is, how many people can truly practice discipline? 8. It looks simple, but it's really just about surviving. Living long enough to see opportunities—so straightforward it hurts.

View OriginalReply0

ExpectationFarmer

· 10h ago

10,000 to 5,000,000, that must be a very smooth deal. Why do I feel like I'm gambling? It's 2024 and people are still talking about discipline and the 1% rule. These things have been outdated for a long time. That's right but hard to do. Most people are still thinking about going all-in to turn things around. The phrase "no bullets in the pocket" hits hard. Every time the market turns, it's the most awkward moment. Follow the trend to eat meat. I ask, why do big V influencers never seem to distinguish when the trend reverses? It sounds simple, but in reality, the mental state can discourage 90% of people. No matter how many times you say this stuff, no one listens. Humans just like to take the long way around.

View OriginalReply0

ShibaMillionairen't

· 11h ago

1. Hearing about 10,000 to 5 million all the time, but the key is how many people can really stick to the 1% rule. 2. Speaking of which, knowing the principle alone is useless; execution is what makes all the difference. 3. Discipline is easy to talk about, but when the market is rising, who cares about 50-30-20? Just go all in. 4. Having bullets or not really makes a difference; this really hits home for me. 5. The part about bottom fishing and top escaping being beaten up is so true—I’ve done that stupid thing myself. 6. Honestly, holding 50% in BTC and ETH is a bit conservative; it feels like the returns will be slow. 7. Following the trend sounds simple, but no one can really tell the difference between a trend and a rebound. 8. Losing ten times in a row and still having 90% of the principal left—this math checks out, but not many can pass the psychological barrier. 9. This set of advice sounds like “don’t do stupid things and you won’t die,” but who in the crypto world can really resist doing stupid things? 10. The last line about defeating the smart brain—ha, I think a smart brain combined with execution is the most terrifying.

View OriginalReply0

PumpingCroissant

· 11h ago

10,000 to 5 million, this guy is really outrageous. I need to ask him for advice. --- To put it simply, being alive is the most important thing. Without bullets in your pocket, everything else is useless. --- Discipline is something that sounds simple, but how many people can stick to it? --- I also want to try the 1% rule, but I’m afraid I can’t hold on, and I get too excited and go all in. --- Following the trend correctly can make money; guessing wrong means waiting to be trapped. I’ve been beaten up many times already. --- This theory sounds reasonable, but the real test is your mindset when executing. --- Having 50% in core positions is really a life saver. I used to be all swing trading, but I missed several good market moves. --- Every time I try to buy the dip, I end up buying halfway up the mountain. Feels like my luck isn’t strong enough.

View OriginalReply0

NFTHoarder

· 11h ago

10,000 to 5 million, this multiple is outrageous. It's not that I want to play devil's advocate, but cases like these are often affected by survivor bias. Honestly, there's no denying that discipline is more important than anything else, but I’ve rarely seen anyone truly stick to the 1% rule; most are just armchair strategists afterward. The phrase "no bullets in the pocket" is spot on. How many people have died because of this? Compared to following the trend, is it easier to catch the bottom? I can't see it. How do you judge your "trend"? Isn't it just technical analysis? This set of methods reads comfortably, but how about execution? I bet five cents that this brother has also fallen into traps. Hmm, there's some truth to it, but what's even more critical is how to survive those few waves when the mindset explodes.

View OriginalReply0