Open the market software, a full screen of green candlesticks, and various profit screenshots flooding the community. At this moment, do you especially want to go all-in? I advise you to stop first.

I have been involved in the crypto market for nearly 8 years, and I have seen countless stories of "getting rich overnight," but even more are blood-stained ledgers of chasing high and getting caught. There is a particularly interesting phenomenon—whenever the market suddenly surges, the reactions of beginners and veterans are completely opposite. Beginners rush in desperately, afraid of missing the train; veterans instead start to sell in batches. The difference is not luck, but whether they can hold their hands steady or not.

Let me share a real case. Last year, a mainstream coin rose from 10,000 yuan to 30,000 yuan in just a few months. Every day, someone in my community would show profits, and some even continued to chase with 5x leverage. At that time, I repeatedly emphasized taking profits in stages and controlling leverage in the group, but several people criticized me, saying I was too conservative and couldn't keep up with the market rhythm.

A week later, the market suddenly adjusted, dropping 40%. Those who mocked me either got liquidated directly or were stuck at the top and couldn’t move. Meanwhile, those who followed my advice to reduce positions gradually not only secured their unrealized gains but also absorbed a lot of chips at the low during the pullback. This gap is not about luck; it’s about the difference in cognition and execution.

The reason why the crypto market can surge so fiercely is very simple—80% of the market increase is driven by emotions, a bubble feast built on various expectations and FOMO. Genuine value growth based on the project itself is usually moderate and doesn’t pressure you to "get on the train immediately."

When the market is hot, how can you operate rationally? I have summarized three proven effective methods:

**First is position management.** Never allocate more than 20% of your total funds to a single coin. This is the bottom line. When the market rises, proactively reduce your position rather than add to it. A reference standard is to sell 1/4 of your current holdings every 20% increase, turning some unrealized gains into real profits little by little. What are the benefits of doing this? Even if the market continues to rise later, you won’t regret too much because you still keep part of your position to follow the trend; if the market pulls back, you’ve already locked in enough gains, and your psychological pressure is much lower.

**Second is information processing.** During a sharp rise, the community will be flooded with various "inside information."