#Bitcoin and Digital Currencies Having navigated the crypto space for nearly a decade, experiencing both gains and losses, trying ICOs, meme coins, and mining, and enduring three bull and bear cycles, I’ve realized that there’s only one truly stable way to profit. It’s a simple, universally understood principle: buy in the bear market, sell in the bull market. That’s it. The bull and bear cycles are clear and predictable: bull markets typically last 6 months to 1 year, while bear markets persist for 1-2 years, making a full cycle 3-4 years. By following this pattern, you can achieve over 50% returns in each bull market, easily outperforming financial products, stocks, and mutual funds. This isn’t speculation; it’s a market rule. The practical strategy involves five steps: 1. Only accumulate during bear markets Be patient and focus on the bottom range of the bear market (characterized by Bitcoin being ignored and the crypto space being eerily quiet). This phase may last over a year but is the golden period for accumulating assets. Don’t aim to buy at the absolute bottom; dollar-cost averaging is safer. 2. Focus on mainstream coins - **BTC, ETH**: The eternal core of the crypto space. Buy in the bear market, sell in the bull market. A 50%+ gain is the baseline, making them the top choice for large capital. - **Exchange tokens**: Such as BNB, deeply tied to exchanges and highly resilient. - **Strong public chains**: Such as SOL, AVAX, with solid technology and strong upward momentum in bull markets. - **Infrastructure tokens**: Such as MATIC, with widespread ecosystem applications and clear long-term value. - **Beware of consensus coins**: Such as Dogecoin and SHIB, which lack substantial applications and rely solely on hype. Use only a tiny portion of your portfolio for entertainment purposes, and never go all-in. **Iron Rule**: Altcoins are essentially "tools for cutting retail investors." Coins that skyrocket in one bull market may go to zero in the next. Betting on altcoins without insider information is equivalent to gambling. 3. Take profits decisively during the mid-bull market - **Early stage**: BTC leads the rally, ETH follows, mainstream coins rise steadily, and a few altcoins show unusual movements. - **Mid-stage**: BTC and ETH climb steadily, mainstream coins explode, and altcoins start to follow. - **Late stage**: BTC begins to drop, ETH may have a final surge, and altcoins experience frenzied gains (multiples or even hundreds of times). - **End stage**: BTC crashes by thousands of points, briefly rebounds, and then plunges again, marking the end of the bull market. At this point, you must cut losses and avoid wishful thinking, or your principal will be wiped out. 4. Resist gambling tendencies in bull markets In the mid-to-late bull market, the wild gains of altcoins can be tempting, but chasing them is like playing with fire: - Altcoins may have flashy narratives and rapid gains but lack fundamental support. They will inevitably lose 50% or go to zero in the bear market. - If you must scratch the itch, use no more than 10% of your funds for small bets, and even if you win, don’t increase your position. A single mistake with a large position can erase all your gains. 5. Protect your principal above all else If you’re caught in a losing position, cut your losses decisively to protect your principal. Exiting before a bear market crash may result in a maximum loss of 50%; holding on to the end could mean losing everything. After cashing out in the bull market, patiently wait for the next bear market bottom. Don’t buy in the middle of the cycle, and never chase altcoins with your profits. Finally, a word of advice: The crypto space never lacks opportunities; what’s lacking is the rationality to restrain greed. Follow the market cycles and don’t be swayed by short-term fluctuations. Accumulate in bear markets, sell in bull markets, protect your principal, and avoid gambling tendencies. Only then can you survive in this brutal market.