The cryptocurrency market is not a casino; it is a battlefield of strategy.

Especially with a capital of less than 5000U, reckless trading is just giving away your money.

Last week, I just helped Xiao Li, who entered the market 3 months ago with 800U. His hands shook when placing orders, but now his account is steady at 28,000U, and he has never faced a liquidation.

It’s not about luck,

First, capital allocation is crucial.

He divided the 800U into three parts: 300U for day trading, focusing only on BTC and ETH. Using the MACD golden cross signal, he decisively took profits when BTC rebounded by 3.1% from 86,000 USD on December 5, earning 28U on that single trade;

250U for swing trading, waiting for the RSI to drop below 30 for an oversold signal. When ETH fell to 2718 USD in early December, he entered, holding for 4 days until it surged to 2850 USD, netting 13U;

The remaining 250U is his trump card; even when BTC fell 8% in a single day on December 2, he didn’t move it, which is his confidence for a comeback.

Second, only follow trends, do not waste time on fluctuations.

80% of the time in the cryptocurrency market is spent in sideways movement. In the beginning, Xiao Li also watched the market every day and made random trades until he learned to wait for signals—only acting when the Bollinger Bands opened and the trading volume increased.

Recently, with the Fed's interest rate cut expectations delayed and ETFs experiencing net outflows for two consecutive weeks, he has been more cautious in executing his strategy:

When profits exceed 12%, he must withdraw half. Last week, he just made a 12% profit on an ETH long position and immediately took part of the profit out, leaving the rest to ride on floating profits, not panicking even if there is a pullback.

Third, use rules to control emotions.

I set strict rules for him: single trade losses must not exceed 1.2% of the capital, and he must cut losses immediately. Once, when a BTC long position hit the stop-loss line, he lost 10U but gritted his teeth and closed the position without averaging down;

When profits exceed 2.5%, he first reduces the position by half, using profits as a “cushion.”

In the current market with significant long-short divergence, this has helped him avoid many pitfalls of liquidation.

I have seen too many novices with little capital, always thinking of “making a comeback in one go,” resulting in increasing losses.

The core of growing from 800U to 28,000U is to discipline oneself.

Now, the volatility in the cryptocurrency market is intensifying, with BTC's intraday fluctuations often reaching 5%-8%. Movements of whales and regulatory news can trigger a chain reaction. Having little capital is not scary; having no rules is truly dangerous.

By adhering to these three principles, you too can transform from a victim to a hunter in a weak and fluctuating market.

Follow me for practical strategies that work, see you in the Binance chat room.