In the crypto world, the easiest pitfall to fall into is greed. Some people, once they have more funds, want to buy every coin they like, but end up getting stuck deeply. Instead of doing that, it's better to clarify from the start—how should your money be allocated.

**When funds are limited, focus is actually an advantage**

Under 100,000 yuan, it's recommended to focus on one coin. Don't think about diversifying risk; at this stage, the advantage is in deep research—thoroughly understand the project's fundamentals and technical aspects, and only make a move when you're truly confident. Even if you lose, it’s because you misread the trend, not because of poor management.

**A bit more funds, start adding**

With 200,000 to 300,000 yuan, you can allocate to two coins. The risk is indeed reduced significantly, but don’t be greedy. Within 500,000 yuan, three to four coins are enough. Even with more funds, don’t exceed five coins—that’s not a strict rule, but a practical one. More than five, you simply can't keep up with each coin's dynamics, and in the end, you'll be passively caught.

**Market conditions change, strategies must adapt**

In a bull market, concentrate your firepower and invest in the most promising projects. In a bear market? Use a light position to respond, and cut losses quickly if needed. This isn’t cowardice; it’s wisdom for longer survival.

**Trend is king, don’t go against the market**

Follow news and learn technical analysis simultaneously. A dip or rebound may look like a bottom, but most of the time it’s just a trap; a correction during an uptrend isn’t necessarily a good opportunity, it could be a trap. Don’t try to guess what the big players are thinking—focus on your own strategy.

**Market activity is the real opportunity**

When the market is hot, take action. Investor sentiment is high, and opportunities abound. But stay flexible—markets change, and your trading strategy should change accordingly. Don’t stick to one template forever.

**Stop-loss and take-profit, simple as it sounds**

Finally, protecting your principal always comes first. Set fixed stop-loss points and execute immediately when triggered—don’t be reluctant. Likewise, take profits when you see good gains; don’t be greedy waiting for higher prices—after all, profits you can secure are true profits.