A friend told me a few days ago: "Bro, how do you allocate your positions? How do you control risk?"

I honestly replied: If you don't understand these two things clearly, trading in the crypto world is like sleeping next to a bomb.

The incident from last month is still vivid in my mind— a young trader heard that a certain project was a "hundredfold potential coin," and in a rush, he went all-in with his entire principal. As a result, the project team released a negative announcement in the middle of the night, causing the coin price to plummet straight to the floor, and his account was wiped out instantly. At that moment, he finally understood what "the market is merciless" means.

So my advice is simple: beginners must never be fully invested!

**Stage One: Keep Calm**

Control your position to within 30%, and save the rest of the money. Why? Because the market can't go up forever. When the market suddenly reverses, you still have bullets to add to your position and room to adjust. Even in the worst-case scenario, you can walk away intact, avoiding waking up to a negative balance.

Before each trade, ask yourself: If I lose everything on this trade, can I calmly close my computer? If the answer is no, then don’t make a move.

**Stage Two: Gradual Upgrading**

As your trading skills stabilize and your account grows to a certain size, consider increasing your position to 50%. But the prerequisite is— you truly know how to survive.

There is a strict rule that must be engraved in your mind: never fully invest, never bet all chips on one coin.

**Key Third Step: Stop-Loss is Your Lifesaver**

When it comes to risk control, it all boils down to two words: stop-loss.

Stop-loss is not surrender; it’s leaving the battlefield alive. Set your stop-loss level before opening a position— for example, exit immediately if you lose 3%, and stick to it without hesitation.

I’ve also been greedy before. Once, I lost 10% on a trade but was reluctant to cut, thinking "it will rebound soon," but it kept falling deeper, and finally my account was cut in half. That painful lesson made me realize: small losses are tuition, big losses are fatal.

Since then, I set a strict rule for myself—keep positions stable, enforce stop-loss decisively. No matter how the market swings, I stay as steady as a rock.

**Final Words**

The scariest thing in the crypto world isn’t a market crash, but losing control of your own hand. Want to turn things around? First, learn to survive. Think through your position allocation, set your stop-loss clearly, and clarify your take-profit targets before acting.

No one can win by brute force in this market; only traders who understand self-discipline and risk management can go further.