Capital Management: Ensure Survival, Avoid Full Exposure

In the market, what matters most is not how much you earn, but how to ensure your account survives in the long run. Especially in high-risk markets like cryptocurrency, traders often face rapid market fluctuations and extreme market events. At this time, an excellent capital management plan is particularly important.

One core strategy is the Barbell Principle+. The core idea of the Barbell Principle is to divide capital into two parts: one part remains highly secure and stable, while the other part takes on higher risks. In the cryptocurrency market, this means that 90% of the capital can stay in cash or low-risk investments, while 10% is used for high-risk speculation.

The advantage of this approach is that it limits maximum losses, especially during extreme market fluctuations or when encountering black swan events, traders will not lose all their assets due to a single failure. Regardless of how the market changes, maintaining the security of capital is always the most important thing.

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