The crypto market continues to evolve at a rapid pace, and with every bull run comes both opportunity and risk. While many celebrate rising prices, seasoned investors know that bull markets can be deceptively dangerous — especially for those who let emotion override strategy. On April 24, the "Facing Bulls and Bears: Blockchain Insights Unfiltered" event, co-hosted by Baicai Blockchain and Pionex, took place at Feizhu Bukai Hotel in Hangzhou, bringing together top industry figures to discuss real strategies for surviving and thriving in volatile markets.
With nearly 200 attendees from across China, the event featured deep-dive sessions from renowned traders and blockchain leaders, including Haze (19x return in 380 days), ChainX CMO Kristen, DOGE China community founder Xu Zhihong, Baicai Blockchain founder Ma Dan, and legendary investor Chen Xiao — who grew his portfolio from $20,000 to $7 million.
Here’s what you need to know about navigating the current market cycle, avoiding common pitfalls, and positioning yourself for long-term success.
From $20K to $7M: A Trader’s Journey Through Boom and Bust
Chen Xiao entered the crypto space at the end of 2016. By the end of 2017’s explosive bull run, he had turned his initial $20,000 into nearly $8 million — a 400x return. But as he candidly admitted, it was more luck than skill.
👉 Discover how disciplined strategies beat emotional trading in volatile markets.
“The market gave me an incredible opportunity,” Chen said. “But in 2018, I watched helplessly as many of my holdings crashed to zero. I lost a significant portion of my gains because I didn’t have a clear exit strategy.”
It took him years of reflection — from 2019 to 2020 — to refine his approach. Today, he’s back at peak performance, not because he found a magic formula, but because he developed a repeatable process grounded in three pillars: profit certainty, execution method, and psychological discipline.
1. Profit Certainty: Bitcoin as a Long-Term Winner
Chen emphasized that we're witnessing a structural shift in capital flows — from traditional assets like stocks to digital ones like Bitcoin. “Just as real estate boomed over the past two decades amid constant debate, Bitcoin will rise over the long term through ongoing bullish and bearish cycles.”
Viewing Bitcoin as part of a macroeconomic wealth redistribution trend increases confidence in its long-term upside. This perspective builds patience during short-term volatility and reinforces the idea that strategic allocation to Bitcoin offers high-profit certainty.
2. Execution Method: Big Waves Over Small Gains
Despite Bitcoin’s historic rallies, very few investors actually profit significantly. Why? Because most chase “100x” altcoins or try to time the perfect entry.
Chen argues that small-scale trading rarely leads to life-changing returns. Instead, he advocates riding major market waves — what he calls “big wave trading.”
There’s an inherent trade-off in trading known as the impossible triangle: high win rate, speed, and high reward-to-risk ratio. You can only optimize two at once. That’s why chasing frequent small wins often fails — it sacrifices reward potential and increases emotional fatigue.
“You don’t need to buy at the bottom,” Chen noted. “If you catch the middle of a big move and hold through volatility, you’ll still make substantial gains. The hardest part isn’t entry — it’s holding.”
3. Psychological Discipline: Overcoming Human Nature
Fear of missing out (FOMO) and fear of loss dominate trader psychology. Most people sell too early or buy too late because they lack systems to counter emotional impulses.
That’s where automated tools come in.
Chen introduced grid trading bots as a solution:
- They automate dollar-cost averaging (DCA), buying low and selling high in predefined price ranges.
- They eliminate emotional hesitation, giving traders “courage to enter” even when prices feel high.
- They allow continuous participation without constant monitoring.
For retail investors, this represents a paradigm shift — moving from all-in bets or paralysis by analysis to consistent, rules-based engagement.
Market Outlook: The Bull Run Isn’t Over — But Smart Exit Strategies Are Crucial
While Chen believes the broader bull market is still intact, he warns against complacency. Historical data shows that even strong bull runs experience sharp corrections — 2017 saw five pullbacks exceeding 30%.
Today’s rally has already delivered massive returns. Any reversal may not stem from fundamentals but from profit-taking by early entrants.
So what should investors do?
If your portfolio is heavy in small-cap altcoins, consider rebalancing into Bitcoin and Ethereum:
- In an ongoing bull market, both will likely continue rising (though ETH may underperform BTC).
- During downturns, Bitcoin proves more resilient, preserving capital better than most assets.
- Holding stablecoins like USDT avoids volatility but sacrifices yield.
👉 Learn how to protect profits without exiting the market entirely.
Here’s where arbitrage strategies become valuable.
Zero-Risk Yield? Understanding Spot-Futures Arbitrage
One tool Chen highlighted is spot-futures arbitrage, which takes advantage of the funding rate mechanism in perpetual futures contracts.
When markets are bullish, traders use leverage to go long on futures. But someone must provide liquidity on the short side. To incentivize this, exchanges pay funding fees every 8 hours to traders who take offsetting positions.
Arbitrage bots — like those offered by Pionex — simultaneously:
- Hold Bitcoin in spot accounts
- Short Bitcoin futures contracts
This creates a near-market-neutral position that earns funding payments with minimal risk.
Over time, these small yields compound — especially during extended bullish periods when funding rates remain positive. It’s one of the few strategies offering consistent returns regardless of price direction.
Behind the Scenes: How Pionex Builds Trust Through Product Excellence
Pionex has spent three years refining its platform with a singular focus: delivering value through innovation and security.
Unlike typical exchanges, Pionex operates as a brokerage, aggregating liquidity from top-tier platforms like Binance and Huobi. This means user funds are primarily held on those secure exchanges — reducing counterparty risk.
Key strengths include:
- A tech team with backgrounds at Google, Kingsoft, and Cheetah Mobile — experts in cybersecurity and large-scale software.
- Proven experience building products with over 1.6 billion monthly active users globally.
- Backing from established U.S.-based venture funds (Gaorong, Shunwei, ZhenFund) focused on long-term growth, not quick exits.
- Early adoption of 7x24 grid trading bots, tailored for crypto’s non-stop market environment.
Since launching in 2019, Pionex has gained strong traction overseas, where algorithmic trading tools are more mature — signaling a growing global trend toward automated investing.
Frequently Asked Questions (FAQ)
Q: Is the current bull market over?
A: Not necessarily. Historical patterns show bull runs include sharp corrections. While momentum remains positive, prudent investors should secure profits and manage risk.
Q: Why is Bitcoin considered a “sure bet” long-term?
A: Institutional adoption, limited supply, and increasing macroeconomic uncertainty are driving structural demand — similar to early-stage real estate or tech investments.
Q: Can retail traders really compete with whales?
A: Yes — through tools like grid trading and arbitrage bots that automate disciplined strategies, leveling the playing field.
Q: Isn’t spot-futures arbitrage risky?
A: When executed correctly using reputable platforms, it's nearly risk-free due to hedged positions. The main risk comes from platform reliability or extreme black-swan events.
Q: Should I move all my funds to Bitcoin?
A: Diversification matters. While BTC is resilient, a balanced mix of BTC, ETH, and stablecoins can optimize returns while managing drawdowns.
Q: How do I avoid emotional trading?
A: Use rule-based systems like grid bots or set strict entry/exit rules. Automation removes hesitation and prevents impulsive decisions.
Final Thoughts: Thriving in the Second Half of the Bull Market
Bull markets create illusions of easy money — but they’re also when most traders get trapped by greed and overconfidence. The second half demands smarter strategies: locking in gains, using low-risk arbitrage, and relying on automation to overcome psychological weaknesses.
As Chen Xiao put it: “The goal isn’t perfection. It’s consistency.”
With tools like grid trading and spot-futures arbitrage becoming more accessible, retail investors now have powerful weapons to navigate uncertainty — not just survive, but thrive.
👉 Start building your automated trading strategy today — no experience needed.
Whether you're riding the momentum or preparing for a correction, focus on process over prediction. In crypto, survival isn’t about timing the top — it’s about staying in the game long enough to win.
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