How to earn a little more steadily in crypto trading and stabilize profits!

Positioning basics · Hands-on guide to allocating investment funds

In the cryptocurrency market, beginners often make the mistake not of choosing the wrong coin, but of not understanding how to allocate funds. Positioning, simply put, is how much "capital" you commit to the market. This determines how much you can earn and also how much you can lose at most.

🏦 First, understand these core terms

【Position】
The proportion of your total assets that you invest in the market. For example, if you have 100,000 yuan and invest 30,000 yuan in cryptocurrencies, that’s a 30% position. It’s that simple.

【Building a position】
The first purchase of a certain coin. This is the moment real money enters the market, and all subsequent fluctuations start from this point.

【No position】
Your account is full of cash or stablecoins, holding no coins. In a wait-and-see mode, waiting for the next opportunity to act.

📊 Four basic configuration schemes

🔹 Light position (10%-30%)
Use only a small portion of funds to test the waters. The risk is controllable, and if you misjudge the direction, you won’t suffer serious losses. Suitable for beginners to get a feel for the market, while keeping enough ammunition to respond to sudden market changes.

🔹 Half position (50%)
This is the most classic balanced scheme. Half of the funds are in the market seeking opportunities, and half are in cash for emergencies. You can attack or defend as needed, and your mindset remains relatively stable.

🔹 Heavy position (over 60%)
Invest most of your assets. When making profits, gains multiply; when losing money, it’s also brutal. This approach requires you to be quite confident in your market judgment and able to withstand psychological pressure.

🔹 Full position (100%)
Go all-in with all your money, leaving no cash behind. This is called "all in" in the crypto circle, with extremely high risk. Only a few veterans or gamblers dare to play this way.

💡 For beginners: start with a light position, never go all-in on your first trade. After experiencing a few market losses, you’ll realize how important this advice is.

🔄 Four practical trading techniques

【Adding to your position】
When the market is trending upward, continue buying to increase your holdings. The premise is that you are optimistic about the future market; otherwise, it’s chasing the high.

【Reducing your position】
Sell part of your coins to lock in profits. This can secure some gains and reduce risk exposure during subsequent declines. Many experienced traders use this tactic after a sharp rise to stabilize returns.

【Replenishing your position】
When prices fall, buy again at a lower price. This lowers your average cost and creates more room for profit when the market rebounds. However, replenishing also carries risks—if prices continue to plummet, losses will increase.

【Clearing your position】
Sell all of a coin. This might be because you’re bearish and want to exit, or you’ve reached your target profit, or you need cash for emergencies. $BTC $ETH Be especially cautious with the decision to clear positions in top-tier coins.

Ultimately, the core of position management is: don’t put all your eggs in one basket, but also don’t be too timid to act. Finding your balance between greed and fear is the key to stable profits.