Many beginners look down on small funds, thinking that with 1,600 yuan they can't even enter the crypto circle. But what I want to say is that the game rules for small fund players are fundamentally different — this isn't about betting everything for quick riches, but about surviving and making money.

Last year, I helped my cousin-in-law turn 1,600U into 28,000U in five months, without ever blowing up a position. It’s not luck; it’s based on three ironclad rules earned through blood, tears, and discipline.

**Rule 1: Divide the money into four parts and completely abandon gambling mentality**

Small accounts tend to die quickly, mostly because of "all-in" bets. My first advice to my cousin-in-law was to split 1,600U into four pools, each with a different purpose.

Short-term flexible fund 350U. This is the bullet for chasing intra-day certainty opportunities. Take profits immediately once a 3% gain is reached, never be soft-hearted. At first, my cousin-in-law wanted to pursue 10% returns, but after experiencing several drawdowns, she realized that intra-day volatility is limited, and greed ultimately leaves you with no money.

Swing position fund 450U. Dedicated to waiting for major breakthroughs on the daily chart, such as moving averages crossing with increased volume — clear signals. The target is set at over 15%. This money isn’t used during bottom oscillations; only during trend initiations.

Long-term core holding 400U. Pick one or two mainstream coins with solid fundamentals and hold them steady. If the price doesn’t hit stop-loss or target, treat this money as nonexistent. My cousin-in-law initially couldn’t handle this; she kept jumping every day with market fluctuations. But later she realized that long-term holding is actually the best way for small accounts to combat anxiety.

Emergency reserve 400U. Used to add to positions during market crashes or to handle sudden risks. Usually, it’s just kept aside and not touched.

What’s the benefit of this split? Short-term losses won’t affect the swing strategy, and during sideways markets, there’s no panic. Even if there are three consecutive short-term losses, the emergency fund provides a safety net. This "clear responsibility" division psychologically breaks the fear of "one misstep leading to total loss" that small accounts often have.

**Rule 2: Only watch "clear signals," stay away from choppy sideways markets**

Seventy percent of the time in crypto is spent sideways. Beginners lose money not because they miss opportunities, but because they trade frequently in meaningless oscillations. My simple rule for my cousin-in-law is:

No trading during low-volume sideways consolidation. For example, if Ethereum is hovering around 2000U for ten days without volume spikes, she just observes daily but doesn’t trade. It sounds easy, but everyone can understand that itchy feeling. To overcome this, we agreed that during such periods, she only records data and refrains from trading.

Trade only when a key level is broken. One day, Ethereum suddenly surged past 2100U with increased volume — that’s the signal. Not just looking at price direction, but volume and key levels. These "clear signals" don’t appear often, but each one is well-founded. Later, my cousin-in-law made a list of her most profitable trades, and most of them were opened during these volume breakouts.

**Rule 3: Light position + stop-loss, treat risk as tuition**

Small accounts fear a single big blow-up the most. So from the first month, my cousin-in-law never risked more than 15% of her account on any single trade. It sounds conservative, but it’s truly lifesaving.

Set a stop-loss on every trade. No matter how market reverses later, cut losses at the stop. Once, she was bullish on a coin but got the direction wrong and lost 150U. She was very reluctant, but I told her: "That 150U isn’t a loss; it’s tuition. Next time, you’ll understand how this coin moves." Gradually, she accepted this logic, and her trading mindset stabilized.

Over five months, turning 1,600U into 28,000U sounds like a lot, but it’s the result of these "small rules" accumulated daily. She never made a 50% profit on a single trade; it was all about stacking 10%, 15%, 8% gains one after another. The game rules for small fund players aren’t about overnight riches but about surviving longer and earning more steadily through discipline.