Crypto market trends change rapidly, and many people find themselves in this dilemma: optimistic about a certain direction but always buying at high prices, or cutting losses at low points. The root cause of the problem is often not the ability to select coins but the lack of systematic position management and mental discipline.

One approach worth considering is to divide the principal into 5 equal parts. For example, with a total of 100,000 yuan, split it into five 20,000-yuan portions. What are the benefits of doing this? When the market declines, you can buy gradually at lower prices each time it drops by a certain amount, making full use of the low-price opportunities. Additionally, because the position is spread out, the pressure and psychological burden of each buy-in are reduced, allowing you to stay rational even during extreme pessimism.

The basic operational logic is as follows: first, use one portion of funds to test the waters in mainstream coins, focusing on assets with high liquidity and relatively stable fundamentals. Once the price starts falling, each time it drops about 10%, add positions with the second and third portions sequentially. Even if the market halves, the five portions can just be enough to cover the bottom area. Participants who panic-sell at this point can only watch as the rebound begins.

When prices rise, the rules reverse. Each time the increase reaches about 10%, gradually reduce the positions to lock in profits. This is not greed but an acknowledgment of market uncertainty. During sideways consolidation and volatility, small fluctuations of 5~10% can be used to trim gains. No matter how complicated the market, this framework can maintain a certain level of discipline.

Some try to shrink this cycle to 5% per operation for higher capital turnover efficiency, but the corresponding trading frequency and risk also increase. This advanced approach requires stronger execution ability and mental resilience. Most importantly, regardless of the parameters used, avoid heavy positions in coins with unclear fundamentals and poor liquidity, as even the best method can lead to pitfalls if you’re overly concentrated.

The core idea of this approach is simple: hedge against market uncertainty through diversification over time and price levels. No need for precise predictions, just discipline and patience. Ordinary participants lack not capital but this systematic execution framework compared to professional institutions.