Checking the market in the middle of the night has become a daily routine for crypto enthusiasts. But for experienced traders, market fluctuations are no longer frightening; instead, they serve as signals.

Many people enter this market very aggressively. During the big wave of 2018, many investors made the same mistake — putting all their assets into a single project. The result? The project team ran away, and accounts went to zero. Such a blow is enough to make someone give up. But it’s precisely this heavy cost that makes people realize a hard truth: in a high-volatility market, the first step to survival is not learning how to make money, but learning how to stay alive.

Fund management is essentially defensive. Effective capital allocation allows you to have a chance to recover even after consecutive mistakes. Here is a relatively feasible approach —

**"Five-Partition Defense Method"**: Divide your total funds into five parts, investing only one part at a time. The benefits of this approach are obvious. Limiting each loss to within 2% of the total account balance means that even if you fail five times in a row, your total loss is only 10%. 90% of your principal remains, and the chance to turn things around is always there.

Set stop-loss at 10%, leaving no room for emotions. Exit immediately when the stop-loss level is reached; don’t expect a rebound. The art of taking profits is different — aim to earn at least 10% before considering taking profits. During strong market trends, let profits run and pursue larger gains by riding the trend.

This system can protect you across different market cycles. The key is to follow the discipline — write the rules in stone and do not change them based on market sentiment.