What’s coming out of JPMorgan definitely warrants our vigilance. Behind the $7 billion fine, it reflects systemic issues in traditional finance, but don’t think this is just their problem.

Honestly, the line between the crypto market and traditional finance is becoming increasingly blurred. If the precious metals market is manipulated to distort prices, funds seeking risk hedges often flow elsewhere, and cryptocurrencies naturally become targets. The problem is—most of these inflows are short-term speculative funds, not long-term value investors. They can quickly push up prices, but once external conditions change or the storm subsides, these funds will withdraw rapidly, and retail investors are often the ones caught the worst.

So the first key point: don’t follow the herd and chase highs. Especially for tokens with recent extreme volatility, including some RWA tokens linked to commodities, now is the time to stay cautious and not be tempted by short-term gains.

Moving on, let’s talk about how to allocate assets to avoid most risks. Remember these three principles, which can help you dodge 80% of the pitfalls:

First, diversification in allocation is essential—don’t put all your eggs in one basket. I personally follow the “532 principle”—50% in mainstream coins (like Bitcoin and Ethereum, to ensure a stable foundation), 30% in medium-risk tokens, and 20% in high-risk, high-reward exploratory positions. With this structure, you won’t collapse during a big drop, and you can still share in gains during a big rise.

Second, pay attention to on-chain data and institutional movements. Don’t just look at candlestick charts and various opinion articles; truly knowledgeable people observe how big wallets move and where institutional wallets flow. These data points don’t lie.

Third, set stop-loss levels. No matter how promising a coin looks, always have an exit plan. Once it drops below a certain price, exit decisively—don’t count on a rebound. Mental preparedness is often more important than technical analysis.