In 2022, I faced heavy losses in crypto, but I turned things around with a strict 70/30 rule: keeping 70% of my capital in cash and investing only 30%. This strategy reduced risk and allowed me to take advantage of market dips.
1. The 70/30 Rule: Minimize Risk, Maximize Opportunity
I always keep 70% of my capital in cash, investing only 30% at a time. This ensures I never go all-in and can always buy more when the market dips. It prevents panic selling and gives me flexibility to make rational moves.
2. Buying at the Right Time
I wait for market sentiment to turn extremely negative—when memes flood social media saying “crypto is dead”—then I buy 20-25% of my cash reserves. If the market recovers, I profit. If it drops further, I still have capital to invest at even better prices.
3. Winning in Any Market Condition
If the market goes up, I secure profits with low risk. If it drops 50%, I still retain 85% of my initial capital, allowing me to buy more over time. This approach keeps me in control and avoids devastating losses.
Conclusion: Stay Disciplined and Patient
Success in crypto isn’t about luck; it’s about strategy. By following my 70/30 rule, ignoring hype, and buying when fear is at its peak, I turned losses into big profits. Patience and discipline are key to winning the long game.
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