For cryptocurrency traders, the past weekend delivered a brutal blow. Virtually all leveraged long positions were decimated, resulting in an astonishing $19 billion in liquidations. (A reminder: these figures reflect leveraged exposures, not actual asset values.) With eight years of experience in the crypto space, I've never witnessed an event of this magnitude. Yet, as one of those "multicycle-surviving cockroaches", a term aptly coined by @Awawat_Trades, several key practices shielded my portfolio from catastrophe. Here are the strategies that proved invaluable: ❶ Embrace Paranoia and Diversification I recall discussing with @Flowslikeosmo how I had systematically derisked most of my gains into stablecoins over the past year, while channeling portions into non-crypto assets. The rationale is straightforward: as a father of three, with my professional focus now centered exclusively on cryptocurrency and its adjacent industries, I require an extended financial runway. Crypto's inherent volatility is a risk I willingly accept, but prudence demands safeguards against potential downturns. ❷ Approach Leverage with Caution There's a common misconception that modest leverage—say, 1.2x to 1.3x—constitutes "safe" territory. In reality, any degree of leverage carries substantial risk, regardless of scale. The recent black swan event serves as a stark illustration. I'm not advocating for complete avoidance of leverage, as I employ it myself, but intelligence is key: rigorously manage your exposure, implement stop-loss orders, and consider trailing stops or profit locks where appropriate. In essence, before venturing into high-stakes territory, always prioritize downside protection. ❸ View Emotions as the Adversary This principle may seem self-evident, yet we often succumb to emotional impulses with alarming speed, particularly when markets plunge into deep red. The solution lies in trading only with capital you can afford to lose, cultivating emotional detachment through analytical rigor, maintaining a trading journal to dissect successes and failures, and adhering strictly to profit-taking disciplines. Whether in bull or bear phases, the axiom holds: securing profit will never lead to ruin. ❹ Reject the Mantra of "I Can Make It Back Again" This mindset ranks as the second most perilous delusion in trading, the first being "All you need is one trade." Both epitomize the hazards of revenge trading, which can obliterate your net worth in a single misguided move. Avoid such illusions; instead, frame your journey toward financial independence as a marathon rather than a sprint. There will be moments to proceed cautiously and others to accelerate, but the ultimate objective remains steadfast. ❺ Master Wallet Management If you're navigating a downturn, now is the ideal time to adopt this practice: establish multiple, unrelated wallets for distinct purposes, for instance, one for high-conviction holdings, another for meme trading, and a third for stablecoins dedicated to yield farming or as dry powder. This structure transforms risk management and encourages periodic redistribution of profits across accounts, fostering genuine diversification. Thanks to these measures, I emerged relatively unscathed from major liquidations (with only a single $XPL long position on @BullpenFi affected) and experienced a maximum drawdown of 40% in my meme trading wallet (which has since recovered to profits again, largely due to majority plays within the $BNB ecosystem). Across my entire portfolio, the average drawdown stood at a manageable 10-11%. On a more optimistic note, as the market begins to mend, fresh opportunities abound. Several categories, in particular, seems ripe for significant potential that you should check (NFA + DYOR): ▸ AI-DeFAI→ @AlloraNetwork, @SentientAGI, @gizatechxyz, @Infinit_Labs etc. ▸ Robotics → @peaq, @codecopenflow, @xmaquina, etc. ▸ Privacy → @Zcash, @ArciumHQ, @UmbraPrivacy, @RAILGUN_Project, etc. ▸ Prediction markets → @TalusNetwork (PredictionAI), @meleemarkets, @TrendleFi, @trylimitless etc. ▸ RWA, Neobank and Payment → @UR_global from @Mantle_Official, @useTria, @BrahmaFi, @KarmaWallet etc. ▸ Upcoming Infra → @megaeth_labs, @monad, @N1Chain, etc. Bottom line, cryptocurrency endures. While the recent turmoil has purged many participants from the fray, fresh entrants are inevitable, drawn by the unparalleled dynamism of this sector. We shall emerge stronger and more resilient than before, from people to infrastructure. Though challenges persist and the path ahead remains fraught, I believe that we will prevail. To the future of finance.