Web3 Principles: A Survival Guide for the Blockchain World

Navigating the Web3 ocean requires a reliable set of principles as your compass. These are the core principles I have distilled from personal experience, and I hope they help you navigate this emerging world safely and successfully.

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Preface: Why Principles Matter

In the Web3 world, following some fundamental principles is crucial. Just as Ray Dalio wrote his Principles and CZ wrote his, I would like to share my guiding principles for the Web3 space.

These principles are not absolute rules but rather my personal understanding and reflections. There is no absolute right or wrong, they are simply shared experiences. I hope they provide some practical guidance for Web3 newcomers to avoid common pitfalls in this world full of opportunity and risk.

Investment Principles: Stability and Long-Term Thinking

1. Adopt a Bitcoin-Denominated Mindset

Principle	Explanation	Practical Advice
BTC-Denominated Valuation	Use Bitcoin as your base investment currency	When evaluating other assets, consider their value relative to BTC
Keep Your BTC Stack Intact	Ensure your portfolio's Bitcoin value remains stable or grows	Regularly backtest your portfolio's BTC value, not just its fiat price

'In the crypto world, fiat numbers can deceive you, but Bitcoin-denominated accounting never lies.'

2. Asset Allocation: Stability First

Proportion	Recommendation	Rationale
80%+ Bitcoin	Allocate the majority of assets to BTC	Ensures long-term value storage, avoids missing core upside
Under 20% Other Assets	Small positions in quality projects	Captures potential high returns with controlled risk

Portfolio = 80%+ Bitcoin (long-term core) + <20% Select Projects (limited risk)

3. Stay Away from Leverage and Excessive Risk

No on-exchange leveraged trading
Avoid chained staking-borrowing operations
Do not speculate with perpetual contracts

'In extremely volatile markets, leverage is a wealth destroyer. A single liquidation can wipe out years of accumulation.'

4. Capital Management Firewall

Capital Type	Investment Ratio	Notes
Discretionary Funds	Up to 30%	Early-stage investment limit
Dedicated Investment Capital	30% - 70%	Gradually increase with experience

Core Principle: Only invest money that will not affect your quality of life. Ensure you can maintain a normal life even in extreme market conditions.

Security Principles: Asset Protection

5. Private Key Self-Custody Above All

Asset Scale	Recommended Strategy	Avoid
Small amounts	Trusted hot wallets	Do not use suspicious new wallets
Medium amounts	Mainstream hardware wallets	Do not store long-term on centralized exchanges
Large amounts	Multi-sig + cold storage	Avoid single points of failure

Proper Backups: Create 1-3 independent private key backups, store them in different secure locations, and consider using metal media for fire and water resistance.

6. Minimize Trust Model

Basic survival rules of the Web3 world:

Do not trust any Web3 project or individual by default
Do not trust any institution by default, including major exchanges
Do not trust any code audit results by default
Do not trust any guru recommendations by default

'In the Web3 world, trust must be earned through time and transparency, not reputation and marketing.'

Mindset Principles: Emotional Management

7. Inner Peace Over External Volatility

Emotional Trap	Coping Strategy	Practical Advice
FOMO (Fear of Missing Out)	Set clear entry criteria	Write down your investment thesis in advance; do not change your standards because prices go up
FUD (Fear, Uncertainty, Doubt)	Focus on long-term fundamentals	Temporarily step away from price charts and social media
Speculative Mania	Strict position management	Set automatic take-profit levels

8. Think in Time Horizons

Time Frame	Importance	Practical Advice
Daily/Weekly Fluctuations	Almost irrelevant	Reduce check frequency
Monthly Trends	Somewhat useful	Make monthly rather than daily adjustments
Annual Cycles	Moderately important	Develop annual plans
4-Year Bitcoin Cycles	Extremely important	Align strategy with the cycle
10-Year Technology Evolution	Fundamentally important	Focus on long-term tech trends

Learning Principles: Continuous Growth

9. Diversified Knowledge Structure

Becoming an excellent Web3 participant requires interdisciplinary knowledge:

Knowledge Area	Importance	Learning Advice
Cryptography Basics	★★★★☆	Understand core concepts and applications
Economics Principles	★★★★★	Focus especially on monetary theory and game theory
Distributed Systems	★★★★☆	Understand consensus mechanisms and scalability challenges
History & Philosophy	★★★☆☆	Study monetary history and libertarian thought
Programming Basics	★★★★☆	Master at least one mainstream language

10. Learning by Doing

Practice Activity	Advice	Benefit
Using DApps	Start with small amounts	Real understanding of products and risks
Joining DAOs	Join and contribute to communities	Understand governance mechanisms and incentive design
Small-Scale Development	Build simple projects	Deep understanding of technical architecture

'In Web3, bystanders can never gain the insights of participants.'

Community Principles: Growing Together

11. Value Contribution First

Action	Recommendation	Avoid
Sharing Knowledge	Publicly share valuable insights	Do not hoard core information for personal gain
Reporting Issues	Provide constructive improvement suggestions	Avoid pointless criticism
Writing Code	Contribute to open-source projects	Avoid being a pure taker without contributing

12. Cultivate Long-Term Thinking

Web3 is not a short-term gold rush but a long-term technological revolution:

Focus on projects that solve real problems
Value community health over short-term price
Participate in ecosystems with long-term vision

'Short-term speculators watch prices; long-term builders watch value. Over a long enough time horizon, value is ultimately reflected in price.'

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Web3 基本原则