Many people in the crypto world have done the stupidest thing—going all-in. It may look brave, but in reality, it's a reckless test on the edge of self-destruction. I've seen too many people decide to go all-in and end up losing everything, from profits gained to their entire capital.

Why is going all-in so deadly? Frankly, there are three main issues.

First is the complete mental breakdown. Full position trading is like tying all your emotions to the K-line; when the market fluctuates, rationality completely disappears. When you should cut losses, you hesitate and let the losses grow; when you should take profits, greed takes over, and a rebound can wipe out your gains. Decision-making is entirely controlled by fear and greed.

Second is the lack of主动权 (initiative). Without cash reserves, it's like a soldier going into battle without bullets. When faced with extreme market conditions, sudden bad news, or rare bottom-fishing opportunities, you can only watch helplessly, with no power to fight back.

The most fatal is zero tolerance for mistakes. The market is always changing, and no one can predict it perfectly forever. If you make a wrong decision out of overconfidence—thinking "I am sure"—there's no chance to turn things around.

So what to do? I’ve developed a practical three-layer position management method, tested through several full market cycles, and it works pretty well.

**Foundation layer accounts for 40% to 50%.** This part involves choosing top assets like Bitcoin and Ethereum, using dollar-cost averaging, and holding for more than three years. No fuss—this is the stable base of your portfolio.

**Mobility layer accounts for 30% to 40%.** Besides Bitcoin and Ethereum, include 1-2 industry-leading coins, and use swing trading to gain short-term profits. But there's a strict rule: a single loss in this layer must not exceed 10% of its total funds. Once that point is reached, cut losses immediately—no bargaining.

**Cash layer accounts for 20% to 30%.** Hold stablecoins or fiat currency, giving yourself a backup. This is for handling emergencies and capturing opportunities during extreme price movements. Always maintain the right to choose—this is the difference between a master and a gambler.

Having a framework is not enough; you also need three core execution formulas.

- Single trade stop-loss should not exceed 2% of total funds. This number seems small, but it forces you to control the risk of each operation and prevents catastrophic losses from heavy positions.

- Buy in at least three batches, with ratios of 3:4:3. This way, you won't miss the entire trend nor buy all at the top out of stupidity.

- After profits, raise your stop-loss. First, ensure your principal is safe, then let profits grow. Many people fail at this step and end up giving back their gains.

Adjust your strategy according to different market environments. In a bull market, hold firmly and gradually take profits with the trend; in a bear market, wait patiently, add to your foundation layer with dollar-cost averaging, and keep cash ready to buy quality assets during panic selling; in a volatile market, watch more and act less—don't get angry over short-term fluctuations and make stupid decisions.

Getting started is actually simple. Immediately allocate your funds in a 5:3:2 ratio. Write down these rules and stick them somewhere visible every day. Then, execute strictly like a program—over three months, you'll feel the difference.

Honestly, position management is not optional; it's an essential course in investing. Once you learn it, you'll shed the gambler mindset and become a truly rational investor. It’s not some profound theory—it's the basic skill to survive.