Cryptocurrency is a high-risk asset with volatile prices that can result in the loss of all principal. The following strategies are provided as a framework for reference and do not constitute investment advice.

Core Principles

1. Invest Only with Idle Funds: The investment amount should be within a range that, even if fully lost, would not affect normal life.
2. Continuous Learning: Blockchain technology, project fundamentals, and market logic change rapidly, so ongoing learning is essential.
3. Contrarian Thinking: Market panic may present opportunities, while market euphoria requires vigilance.

Specific Strategy Framework: Layered Allocation Strategy (Suitable for Most Investors)

First Layer: Core Position (40%-50% of total investment)

· Targets: Bitcoin(BTC), Ethereum(ETH)
· Logic: These are the largest market cap, most mature ecosystems, and most institutionally accepted cryptocurrencies, considered as “Digital Gold” and “Digital Oil.”
· Method: Use long-term dollar-cost averaging combined with buying the dip strategy. Invest a fixed amount on a set date each month. During market panic-driven drops (e.g., single-day decline over 15%), consider adding an extra position.
· Goal: Achieve fundamental industry growth returns and reduce overall volatility.

Second Layer: Growth Positions (30%-40% of total investment)

· Targets: Mainstream public chains (e.g., Solana, Avalanche), Infrastructure (e.g., Chainlink), Leading DeFi protocols (e.g., Uniswap, Aave)
· Logic: These projects have real-world applications, active ecosystems, and strong teams, potentially offering excess returns but with higher risk than BTC/ETH.
· Method:
· Sector Research: Focus on 1-2 core sectors each cycle (e.g., Layer2, DePIN, AI+Web3).
· Diversified Investment: Select 3-5 top projects within the chosen sectors, with no single project exceeding 10% of this layer’s allocation.
· Dynamic Adjustment: Evaluate project progress quarterly, eliminate stagnating projects, and replace with emerging quality projects.
· Goal: Capture high-growth opportunities.

Third Layer: Opportunity Positions (up to 20% of total investment)

· Targets: Early-stage projects (participate via public offerings, IDO), hot market topics (requiring high timeliness judgment)
· Logic: High risk with high potential returns, bearing the risk of total loss.
· Method:
· Very Small Positions: No more than 2% of total funds per project.
· Strict Stop-Loss: Set hard stop-loss lines at -30% to -50%; sell immediately if breached.
· Quick Entry and Exit: Set clear profit targets (e.g., 2-5x), and sell portions of the principal upon reaching them, rolling profits into new opportunities.
· Goal: Achieve big gains with small investments without affecting overall net worth.

Risk Control and Discipline

1. Position Management:
· Never fully allocate all funds; always keep at least 10% in stablecoins (e.g., USDC) as “ammunition” for extreme market conditions or to seize excellent opportunities.
· Gradually reduce positions in late bull markets, converting profits into stablecoins or BTC.
2. Stop-Loss Strategies:
· Core Positions: Can tolerate larger fluctuations, but if BTC retraces more than 70% from its all-time high, reassess macro environment.
· Growth/Opportunity Positions: Must set clear stop-loss points (e.g., -30%) and strictly adhere.
3. Information Processing:
· Tiered Information Sources:
· Primary (Decision Basis): Official project documents, GitHub repositories, on-chain data (e.g., TVL, active addresses).
· Secondary (Market Perception): In-depth research reports, analysis by well-known tech KOLs.
· Tertiary (For Reference Only): General media news, community sentiment.
· Beware of FOMO (Fear of Missing Out): Avoid chasing coins that have already surged multiple times.
4. Safety First:
· Use hardware wallets (e.g., Ledger, Trezor) for storing large assets.
· Avoid clicking unknown links, refrain from using unknown DApps, and never connect private keys/mnemonics to the internet.

Special Recommendations for the Current Market Environment (2024-2025)

· Focus on macro factors: Federal Reserve interest rate policies and Bitcoin ETF fund flows are key influences on the market.
· Focus on narratives: The crypto market is narrative-driven; currently, pay attention to:
· RWA (Real-World Asset Tokenization)
· Modular blockchains
· Intent-centric architectures
· Cross-field areas of AI and DePIN
· Use tools:
· Utilize on-chain analysis tools like Glassnode, Dune to assist judgment.
· Set price alerts to reduce emotional monitoring.

Final Reminder

True investing is counter-human nature. Successful crypto investing = (Solid research + Clear strategy + Strict risk management) x Extreme patience. Be cautious when others are greedy, stay calm when others are fearful, seek value, and always maintain respect for the market.

For first-time entrants, start with very small funds (e.g., $100-$500) to go through a full cycle (1-2 years), accumulate experience, then gradually increase investments. Surviving is more important than getting rich quickly.