#ETH走势分析 The true meaning of principal: it’s not just the string of numbers in your account

Anyone who has weathered the ups and downs of the crypto asset market knows that the definition of principal goes far beyond “initial investment amount.” In reality, it’s your ticket to keep participating in the market.

Once you’re forced out due to liquidation from leverage or major losses, what you lose isn’t a specific sum—it’s all potential opportunities for future compound growth. That’s the real cost.

A common phenomenon: this is exactly where top traders and ordinary retail investors are divided. The former always aim to “survive to the next cycle,” while the latter get hung up on “how much to make this round.”

You’ll understand when you see the market swinging violently. Average people go all in, betting on a rebound, while truly experienced players keep losses per trade strictly under 2% of their total assets. Even if their judgment fails, they still hold chips waiting for the next opportunity.

Excess returns come from information asymmetry, not following the crowd

The entire market has already formed a highly unified consensus on common logic like Bitcoin halving, and prices have fully reflected this—you won’t make money here. Real profits are hidden in controversy and disagreement.

When a new chain or protocol sparks debate within the community, prices are often mispriced; when policies are still unclear, panic can drive high-quality assets below cost.

Penetrating this fog takes real skill. Some track whale movements through on-chain addresses, others assess long-term project potential via protocol iteration logic. Most people shy away out of fear, while real winners position themselves early, waiting to cash in as controversy turns into consensus.

The core of risk management: defend your baseline with caution, capture certainty with aggression

The harsh truth of crypto is: 99% of your profits may come from just 1% of key trades. But only if you survive to see that 1% opportunity.

So the strategy is simple but hard to execute—stay in low-leverage or cash positions 90% of the time, ignoring irrelevant fluctuations; in the remaining 10% of the time, go big only when there’s a major fundamental breakthrough or market sentiment reaches an extreme.

What’s at the heart of this approach? Use discipline to tame the greed and fear in human nature, and use time to create room for maneuver. When you’re no longer held hostage by daily price swings, you can clearly see where the real rewards in the market lie.