In the face of rules, greed is the biggest risk.
When Xiao Lin found me, his face was as pale as a piece of paper. His finger hovered over the trading interface for a long time, afraid to click, with that pitiful 780U in his account, as if it were the last fragments of his shattered dreams.
Two weeks ago, he jumped into a popular altcoin with an all-in 500U, and ended up with only a fraction left after three days. The pressure of rent kept him awake all night, and every price fluctuation tugged at his nerves.
As an old player in the crypto world for 8 years, I've seen too many people like Xiao Lin. The less capital you have, the more you want to 'turn the tables in one go,' but the result is often deeper entanglement.
I patted him on the shoulder: 'Don't panic, follow the rules, and small money can also grow.'
Break down the principal: the three-part rule for small funds.
The first thing I did for Xiao Lin was to reorganize that 780U.
280U is used for day trading, focusing only on BTC and ETH, and when volatility reaches 4%, profit-taking is decisive, without greed or fantasy. 280U is used for swing trading, and one must wait for a clear trend in the candlestick to act, holding positions for no more than 4 days. The remaining 220U is locked directly in the wallet as 'backup money,' and is not touched even in extreme market conditions.
Many people look down on small amounts of money, always wanting to get rich overnight. But the key to survival in the crypto world is not how much you can earn at once, but how long you can last.
Xiao Lin asked me curiously: 'With such a small amount of money, does it still make sense to diversify?'
I told him: 'The meaning of small capital is not to take a gamble, but to give you a chance to learn. Every trade is a monetization of cognition; losses should be understood, and profits should be clear.'
Rules first: stop-loss is the bottom line of survival.
I made a strict agreement with Xiao Lin: a single stop loss must not exceed 1.5% of the total principal, and he must decisively exit when the time comes; if profits exceed 5%, halve the position, and let the remaining profits run.
I remember once, when Bitcoin slightly retraced, it hit Xiao Lin's stop-loss line. He hesitated to hold on, but ultimately exited according to the rules. That night, the price directly broke through the support level, and he later said, 'The rules saved me.'
Having struggled in the crypto world for so many years, I deeply understand the importance of discipline. The market will never lack opportunities; what’s lacking are those who can survive until the opportunity arises.
Patience pays off: opportunities come to those who wait, not those who chase.
During the consolidation phase, Xiao Lin showed remarkable patience. He stared at the market but did not place any orders; this self-control impressed me.
Until that day when ETH broke through the key position and then rebounded strongly. Xiao Lin entered the market according to the predetermined signals and made a profit of 15% after three days. I told him to immediately withdraw half of the profit, and he stared at the notification for a long time: 'So making money doesn't require gambling?'
The volatile market is a meat grinder, and 90% of people will die in it. Do not act rashly without a clear trend; this is the only way for small capital to survive.
The power of compound interest: how small money can grow into big money.
Three months later, Xiao Lin's account grew from 780U to 29000U, and he never once faced liquidation.
He said: 'I used to think about getting rich overnight, but now I understand that having little capital is not scary; what’s scary is being blinded by greed.' The 'dumbest' method of trading with small funds is often the most stable. If the capital is under 100,000, trading crypto is easier to profit than trading stocks; this is a fact.
Now, he has learned to coexist peacefully with the market: waiting in cash when the trend is unclear, and acting decisively when the signal is clear, locking in part of the profit immediately.
Written at the end
The crypto world is not a casino, but a place where cognition is monetized. Every buy and sell reflects your understanding of the external world manifested in asset prices.
For small funds to grow steadily, you need to do three things: break down the principal, prioritize rules, and be patient. Master these three points, and you can survive in the brutal battlefield of the crypto world and thrive increasingly.
There are no shortcuts to success. The biggest lie in the crypto world is 'get rich quick,' while the greatest truth is 'steady profit.' True investment progress lies not in pursuing higher returns, but in learning to maintain stability amid volatility.
780U can be the end of one story and the beginning of another. The choice is always in your hands.
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