Many people enter the crypto world hoping to get rich overnight, but end up losing a lot instead. In fact, the crypto world has never been a casino, especially when the capital is limited; it is even more crucial to use every penny wisely.
Recently, I met a newcomer who came with 1800 dollars asking if there was a chance to turn things around. As a result, after a week of chasing highs and cutting losses, the account was left with only 800 dollars. This story plays out every day in the crypto world, not because they chose the wrong coin, but because they didn't understand how to manage their capital.
Later, I laid out three operational disciplines for this guy, and he followed them step by step. In two months, the principal doubled, and in four months, he reached 60,000 USD, without any account halving throughout the entire process. What’s the key? It’s not relying on luck, but on execution.
**Discipline 1: Split the account into three parts, always leave a way out**
The most common mistake beginners make is going all in. The result of a full bet is that if the market fluctuates slightly, it will directly lead to liquidation. My current strategy is to divide the account into three parts, each with a different purpose:
The first portion (600 USD) is for short-term sniping. Just focus on Bitcoin and Ethereum, the two hardest varieties. Close your eyes and take profits when the price fluctuates by 3%; don't think you can grab the last penny. Many people fail because they hold on to the words "just wait a bit more," desperately trying to get the biggest piece, only to end up losing everything when the market turns against them. The rule of the game for small funds is to accumulate small victories for a big win, rather than hoping to hit big in one go to turn things around.
The second portion (600 USD) is for swing trading. Only get involved when the trend is truly taking shape, such as when there is a daily level breakthrough of previous highs, or a continuous two-day volume surge upwards. This part of the money is usually held for 3 to 5 days, with the goal being to capture the juiciest part in the middle. When encountering directionless fluctuations, just take a break and don’t force a guess.
The third portion (600 dollars) is the guaranteed amount. No matter how much you play around with it, this money remains untouched. Its role is to provide you with a chance to restart at the most critical moment. I've seen too many people impulsively bet this money as well, and as a result, they completely fell apart.
**Discipline Two: Cost Control, Stop Loss is More Important than Take Profit**
There is a painful truth in trading: making money is often easier than not losing money. You must calculate your exit strategy before entering each time. This is especially true for small funds, as they cannot bear large fluctuations.
For example, when I make a short-term strike with this $600, I set the stop-loss price once the buying point is determined, and I exit if the drop exceeds 2%. Some may say this is too conservative, but if you do the math: if you make 50 trades a year, earning 2% each time, that's a 100% return in a year. This doesn't even account for compounding. On the other hand, if you take a big loss of 10% once, you need an 11% increase to break even. Small funds cannot afford this kind of loss.
**Discipline Three: Trading frequency does not represent return rate**
Many people believe that the longer they watch the market and the more frequently they trade, the more money they can make. In fact, it's the opposite. My approach is to clearly plan the target for each trade - a short-term target of 3%, and a swing target of 8-15%. Once I reach my target, I exit.
What are the benefits of doing this? First, it reduces unnecessary emotional fluctuations; secondly, your trading costs decrease significantly (such as fees and slippage); most importantly, your brain remains in a state of alertness. Those who are addicted to trading often find that by the end of the year, they don't even recover their trading fees.
When the principal is not much, it's really not about selecting a certain 100x coin or betting on a certain trend. It's about taking cautious steps, accumulating month by month, and allowing compound interest to ferment over time. I've heard many stories from the crypto world, but those who really survive are the ones who understand self-discipline.
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Many people enter the crypto world hoping to get rich overnight, but end up losing a lot instead. In fact, the crypto world has never been a casino, especially when the capital is limited; it is even more crucial to use every penny wisely.
Recently, I met a newcomer who came with 1800 dollars asking if there was a chance to turn things around. As a result, after a week of chasing highs and cutting losses, the account was left with only 800 dollars. This story plays out every day in the crypto world, not because they chose the wrong coin, but because they didn't understand how to manage their capital.
Later, I laid out three operational disciplines for this guy, and he followed them step by step. In two months, the principal doubled, and in four months, he reached 60,000 USD, without any account halving throughout the entire process. What’s the key? It’s not relying on luck, but on execution.
**Discipline 1: Split the account into three parts, always leave a way out**
The most common mistake beginners make is going all in. The result of a full bet is that if the market fluctuates slightly, it will directly lead to liquidation. My current strategy is to divide the account into three parts, each with a different purpose:
The first portion (600 USD) is for short-term sniping. Just focus on Bitcoin and Ethereum, the two hardest varieties. Close your eyes and take profits when the price fluctuates by 3%; don't think you can grab the last penny. Many people fail because they hold on to the words "just wait a bit more," desperately trying to get the biggest piece, only to end up losing everything when the market turns against them. The rule of the game for small funds is to accumulate small victories for a big win, rather than hoping to hit big in one go to turn things around.
The second portion (600 USD) is for swing trading. Only get involved when the trend is truly taking shape, such as when there is a daily level breakthrough of previous highs, or a continuous two-day volume surge upwards. This part of the money is usually held for 3 to 5 days, with the goal being to capture the juiciest part in the middle. When encountering directionless fluctuations, just take a break and don’t force a guess.
The third portion (600 dollars) is the guaranteed amount. No matter how much you play around with it, this money remains untouched. Its role is to provide you with a chance to restart at the most critical moment. I've seen too many people impulsively bet this money as well, and as a result, they completely fell apart.
**Discipline Two: Cost Control, Stop Loss is More Important than Take Profit**
There is a painful truth in trading: making money is often easier than not losing money. You must calculate your exit strategy before entering each time. This is especially true for small funds, as they cannot bear large fluctuations.
For example, when I make a short-term strike with this $600, I set the stop-loss price once the buying point is determined, and I exit if the drop exceeds 2%. Some may say this is too conservative, but if you do the math: if you make 50 trades a year, earning 2% each time, that's a 100% return in a year. This doesn't even account for compounding. On the other hand, if you take a big loss of 10% once, you need an 11% increase to break even. Small funds cannot afford this kind of loss.
**Discipline Three: Trading frequency does not represent return rate**
Many people believe that the longer they watch the market and the more frequently they trade, the more money they can make. In fact, it's the opposite. My approach is to clearly plan the target for each trade - a short-term target of 3%, and a swing target of 8-15%. Once I reach my target, I exit.
What are the benefits of doing this? First, it reduces unnecessary emotional fluctuations; secondly, your trading costs decrease significantly (such as fees and slippage); most importantly, your brain remains in a state of alertness. Those who are addicted to trading often find that by the end of the year, they don't even recover their trading fees.
When the principal is not much, it's really not about selecting a certain 100x coin or betting on a certain trend. It's about taking cautious steps, accumulating month by month, and allowing compound interest to ferment over time. I've heard many stories from the crypto world, but those who really survive are the ones who understand self-discipline.