Last night, I came across a story about CRV that gave me a new understanding of the essence of the crypto market.

A big investor bought in last year with $1.3 million, and a month later, his unrealized gains had reached $5.2 million — but he chose to wait and see. When CRV dropped from $1.3 to $0.34, he finally decided to take action, ending up with only $400,000 in actual profit.

The gap between $5.2 million and $400,000 boils down to a simple choice: when to turn unrealized gains into realized gains. This made me think of a often overlooked truth — in the crypto world, many people buy, many people sell, but few truly understand how to "protect" their profits.

Many have experienced this dilemma: watching unrealized gains sparkle in their accounts but unable to bring themselves to lock in the profits. When the market reverses, paper wealth can evaporate instantly. The problem isn't market volatility itself, but our lack of a stable asset safe haven.

This is also why asset allocation is so crucial in crypto investing. When you have substantial unrealized gains, instead of stubbornly holding onto one coin and betting on the future, it's better to convert part of it into stablecoins for locking in profits — this not only helps avoid retracement risks but also allows your funds to continue generating returns through interest channels.

During a bull market, everyone thinks they are an expert, but the real test is: maintaining rationality amid frenzy and leaving yourself an exit route.