How to make money in a bull market and avoid going bankrupt?
TechFlow Selected TechFlow Selected
How to make money in a bull market and avoid going bankrupt?
Never make a trade that risks your entire fortune.
Navigating Web3 tides with focused insightsAuthor: David G, Advisor at Moonshot
Translated by: Yuliya, PANews
This article serves as a practical guide on how to profit from and mitigate risks during a cryptocurrency bull market. It details trading strategies and risk management approaches across three core dimensions: portfolio structure, leverage usage, and on-chain trading.
1. Portfolio Structure
Portfolio construction should be adjusted according to capital size, but several core principles must be followed:
High-Quality Collateral as the Foundation
-
Focus primarily on high-quality assets such as BTC and SOL;
-
Switch to stablecoins during sideways or bear markets;
-
In bull markets, use profits to increase holdings in major cryptocurrencies;
Dynamic Adjustment Strategy
-
Maintain a near 100% allocation to BTC and SOL for now;
-
Gradually increase the proportion of stablecoins as the bull cycle progresses;
2. Leverage Usage Guide (Beginner Recommendations)
Set aside traditional social media narratives about leverage—treat it instead as a tool to enhance capital efficiency.
Differentiated Approach
-
Leverage strategies for major coins and small-cap tokens should be entirely separate;
-
Using leverage on SOL is fundamentally different from using leverage on a $500M market cap token;
Core Principles
-
Total leverage on small-cap tokens should not exceed 1x (e.g., with $100,000 worth of SOL as margin, long exposure to altcoins should not exceed $100,000);
-
For major cryptocurrencies, 2–5x leverage can be used selectively under favorable conditions;
-
The higher the leverage, the earlier you should take profits;
-
Never place "all-in" trades—always leave yourself a way out;
3. On-Chain Trading Strategy
Pursue Asymmetric Returns
-
Focus on opportunities with potential for outsized returns, rather than accumulating small gains;
-
Don't over-pursue incremental profits from small trades (as Warren Buffett said, diversification is protection against ignorance);
Position Management
-
Avoid going all-in on any single position;
-
Use a stepwise reduction strategy;
-
For example: sell 10% at $50M valuation, another 10% at $100M, and so on;
Risk Control
Volatility Management
-
Mentally prepare for 50–70% pullbacks;
-
Treat volatility as an opportunity, not a threat;
-
Maintain emotional stability and avoid panic-driven decisions;
Conclusion
Successful trading depends more on psychology than anything else—the biggest opponent is oneself. Through rational portfolio allocation, cautious use of leverage, and sound on-chain trading strategies, one can achieve substantial returns during a bull market while effectively managing risk. Remember: volatility is a key source of profit in the crypto market; learning to coexist with it is the key to success.
Join TechFlow official community to stay tuned
Telegram:https://t.me/TechFlowDaily
X (Twitter):https://x.com/TechFlowPost
X (Twitter) EN:https://x.com/BlockFlow_News
@d_gilz
