The crypto market is like a dark forest, with each participant being a lonely explorer.

In 2016, I first heard that someone achieved financial freedom through the crypto world. At that time, I knew nothing about this field, feeling both nervous and excited, and I invested 20,000 yuan that I had saved for years. In less than a week, my account shrank by nearly half. That feeling is still hard to forget.

But it was this brutal failure that pushed me to tinker in this market for 8 years. Looking back on this experience, I realize that the secret to making money is not about precise predictions, but about building a complete investment system plus emotional management. Today, I want to share these experiences, hoping to help those still exploring.

**How should position management be done correctly?**

My stupidest move at the beginning was all-in, putting all my funds into one coin. After experiencing several big losses, I finally understood—don’t put all your eggs in one basket, as the saying goes.

However, diversification doesn’t mean randomly spreading your investments. My current approach is to split the money into three parts: 50% buying mainstream coins like Bitcoin and Ethereum, 30% investing in promising public chain projects, and the remaining 20% testing new sectors.

This "5-3-2" allocation worked well during the 2022 bear market. I kept my losses within 15%, far better than the market average. To put it simply, diversification is just a means; the real goal is to pursue stable growth while protecting the principal. Instead of spreading yourself thin, it’s better to focus on the few directions you truly believe in.