Avoid bankruptcy! Experts reveal 3 major Bull Market strategies, how to allocate assets, and use leverage reasonably?

This article is a practical guide on how to profit and avoid Risk Management in the encryption currency bull market. The article elaborates in detail on trading strategies and Risk Management methods from the three core dimensions of investment portfolio structure, leverage usage, and on-chain transactions.

1. Investment Portfolio Structure

The construction of an investment portfolio needs to be adjusted based on the capital scale, but there are several core principles that need to be followed:

Premium Collateral is the main focus

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

Convert to stablecoins in a volatile market or Bear Market;

In a bull market, profits are used to supplement mainstream currency holdings;

Dynamic Adjustment Strategy

Currently maintaining a close to 100% allocation of BTC and $SOL;

As the bull run cycle progresses, the proportion of stablecoin is gradually increasing;

2. Leveraged Trading Guide (Newbie recommendation)

Setting aside the traditional understanding of leverage on social media, leverage is regarded as a tool to improve capital efficiency.

Discrimination

Leverage strategies for mainstream coins and small market cap coins should be completely separated;

Using leverage on $SOL and using leverage on 500M Market CapToken are completely different trades;

Basic Principles

The total leverage of small market cap coins should not exceed 1x (e.g., $SOL with a margin of $100,000, the long position of altcoin coins should not exceed $100,000).

Mainstream cryptocurrencies can use leverage of 2-5 times at specific times;

The higher the leverage, the earlier the profit should be realized;

Never make a 'bet everything' trade, always leave yourself a way out;

Three, on-chain trading strategies

Pursuing excess returns

The key is to follow opportunities that may bring huge profits, rather than daily profits;

Don't pursue the accumulation of microtransaction profits excessively (as Warren Buffett said, diversification is the protection of the ignorant);

Holdings Management

Avoid trading completely Position;

Adopt a step reduction position strategy;

For example, when selling at 50M, sell 10%, and when selling at 100M, sell another 10%, and so on;

Risk Control

Volatility Management

Be mentally prepared for a 50-70% pullback;

View Fluctuation as an opportunity rather than a threat;

Keep your emotions stable and avoid panic decisions;

Summary

Successful trading depends more on psychological factors, and the biggest opponent is oneself. By rational investment portfolio allocation, cautious use of leverage, and correct on-chain trading strategies, substantial profits can be obtained in a bull market while effectively controlling risks. Remember: volatility is an important source of profit in the encryption currency market, and learning to coexist with it is the key to success.

Disclaimer: The market is risky, and investments should be cautious. This article does not constitute investment advice. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their specific circumstances. They are responsible for their own investments.

This article is reproduced with permission from: PANews

Original Author: David G, Moonshot Advisor

'Avoid bankruptcy! Experts reveal 3 Bull Market strategies, how to allocate assets, and use leverage wisely?' This article was first published in 'encryption city'.