Recently, many people have been asking: after finally earning the first 1 million USD in the crypto world, what should be the next step? Some say to convert everything into stablecoins to earn interest, but feel the progress is too slow; others want to invest everything, but are afraid market volatility will wipe out their gains. I deeply resonate with these feelings. Once, I had a trade that should have earned over 10,000 USD, but due to a momentary decision mistake, I only ended up with over 10,000 RMB. That lesson made me thoroughly reflect on the logic of capital allocation.

To be honest, the biggest risk in the crypto space is often not the market itself, but capital "lying flat." Putting all your money into stablecoins to earn interest sounds reassuring, but there are two hidden dangers. One is psychological distortion—watching the market surge and plunge, fearing missing out or losing principal, leading to chasing highs and selling lows, ultimately losing both ways. The other is efficiency—crypto cycles roughly every four years; if you only watch from the sidelines, you'll never share the core gains of the cycle.

Later, I developed a method called the "Three-Layer Position Model." If compared to a football team, it’s like having defenders, organizers, and attackers—each doing their part to win. This model helps me stay proactive in both bull and bear markets.

The first layer is defense. This portion of funds acts like a goalkeeper, providing insurance. Usually, 50-60% of the capital is allocated to stablecoins and low-risk assets to earn interest while keeping enough ammunition for emergencies. This way, even if the market crashes, you won't be caught off guard.

The second layer is midfield. Allocate 30-40% of funds to mainstream coins, using dollar-cost averaging or phased deployment. This part allows participation in market movements without overexposing risk.

The third layer is the forward line. About 10% is used for opportunistic investments—quickly jumping on good projects or market trends. This is where you aim for excess returns.

The key is to keep the capital flowing, always in a state ready to seize opportunities rather than passively waiting.