The underlying logic of the crypto world is very realistic—nine out of ten people lose money and exit after coming in, unable to survive a bear market. It may sound harsh, but on the flip side, it also means that as long as you do one thing right, you can be among that 10% who survive.

What is this one thing? It's not choosing the right coins, nor is it trading skills, but risk management.

Many beginners frown when they hear "risk management," thinking it's just "buy less, don't go all-in." But that's not the case. True risk management is a systematic process—it includes how to allocate positions, when to cut losses, and how to respond to black swan events. When done properly, you can make money during market booms, sleep soundly during market crashes, and ultimately achieve stable long-term growth.

**Position allocation is the first step.** The most common failure case is going all-in on a single coin, dreaming of a quick turnaround, only to see a maximum drawdown of over 50%, ending the game. Instead of betting everything on one shot, it's better to use the "631 Rule" for allocation.

Allocate 60% to core assets like BTC and ETH. These two coins do have fluctuations, but they are relatively controllable, with mature ecosystems. Even during declines, there's no need to panic, and long-term holding provides the strongest resistance.

Allocate 30% to high-quality ecosystem coins like SOL and AVAX. They have solid underlying support, greater upside potential than mainstream coins, and risks that are less likely to spiral out of control.

The remaining 10% is your "exploration fund." Use it to try new projects or chase volatile opportunities, but only if losing this 10% won't affect your quality of life.

In addition to position allocation, set stop-loss points for each holding. Even the most promising coins can crash; set your bottom line in advance and execute when the time comes—don't argue with yourself. This way, you can protect your principal and free up bullets to buy the dip and rebound.

People who survive in the crypto world have never won by gambling on luck. They succeed through discipline in every detail.