In the crypto world, where price fluctuations occur daily, even every minute, having a trading and risk management strategy is crucial for long-term survival. After many years of experience, there is a principle that many veteran investors apply: “Small Losses, Big Gains.”
Keep Large – Follow the Main Trend of BTC
Bitcoin has always been the center of the market, leading the entire trend of crypto. When the overall trend of BTC is going up, the market often enters a phase of excitement, with strong inflows of capital.
During this period, investors can:
Boldly increase the proportion of capital, even buying altcoins without being too strict about entry points. Prioritize holding for a longer period rather than short-term trading. Take advantage of the major waves of the market to increase assets.
This is the time to “Hold Big”, dare to follow the main trend and not miss the growth wave.
Be Subtle – Avoid Getting Stuck in Side Opportunities
Conversely, when BTC reaches a short-term peak or begins a downtrend, the situation will change. At that time, the altcoin market may still present a few “small opportunities” – a few coins doubling, or even tripling. But this is a double-edged sword:
High risk, as altcoins can easily lose liquidity when BTC drops. The probability of loss is much greater than the likelihood of winning.
Therefore, instead of rushing into every opportunity, investors should:
Limit or only use a small amount of capital to experiment. Wait for BTC to stabilize before considering strong participation in altcoins. Conserve strength and capital to prepare for the next big wave.
This is the spirit of “small drops” – accepting that it’s impossible to seize every opportunity in the market, and choosing to stay out when the risks are high.
Why Is This Principle Important?
Since 2017, many investors have made significant profits, but have also lost everything simply because they did not know when to stop. The key point to survive is:
Know when to boldly hold. Know when to withdraw and preserve capital.
Not every moment requires a trade. In the investment market, knowing when to pass on a risky opportunity is also a way to make money.
Conclusion
“Small investments to keep big ones” is not a formula for guaranteed success, but rather a mindset that helps investors survive and thrive in the turbulent world of crypto.
Remember:
When BTC is on an upward trend → hold large. When BTC is on a downward trend → sell small.
The market always has countless opportunities, but you don’t need to catch them all. Sometimes, knowing to stay out is the wisest decision.
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Survival Tips in the Crypto Market: Learn How to "Cut Small and Hold Large"
In the crypto world, where price fluctuations occur daily, even every minute, having a trading and risk management strategy is crucial for long-term survival. After many years of experience, there is a principle that many veteran investors apply: “Small Losses, Big Gains.”