I am Route. After years of struggling in the crypto market, I have seen too many people get rich overnight and even more quietly exit the stage. Today I want to talk about something practical: how small capital can achieve breakthroughs through a few opportunities. Here are nine experiences I've summarized, which may help you avoid a few years of detours.
1. Small capital should 'wait' rather than 'strive'
Many people always want to make a little money every day, but frequent operations actually consume the principal. The core advantage of small capital is flexibility; a single major market movement can change the situation. For example, in the Ordinals track of 2023, those who laid out early, even with an investment of just a few thousand yuan, could see their investment multiply several times within half a year. Don't envy those who flaunt their contract profits every day; the ones who truly make big money are often the players who 'hibernate - heavily invest - hold'.
2. Good news landing is bad news.
When a project announces significant good news (such as the mainnet launch or exchange listing), if it hasn't run on the first day, you must decisively exit on the second day. I experienced the frenzy of 20% yields from the Anchor protocol before Luna's collapse, but most people overlooked a fact: after good news is realized, selling pressure often outweighs buying pressure. Remember: the market always reacts in advance; don't wait until the news is known to take action.
3. Before major events, hold back.
Before key events such as Federal Reserve meetings or Bitcoin ETF resolutions, I usually reduce my position or even go to cash. Volatility does not equate to opportunity, especially for leveraged players; a single black swan event can wipe you out. Before the FTX crash in 2022, many people were heavily invested before the Thanksgiving holiday, resulting in no chance to stop-loss. When direction is unclear, cash is king.
4. Mid to long-term layout: position determines mindset.
Those who go all in often die before dawn. I usually allocate no more than 20% of my funds for mid to long-term positions, such as Bitcoin Layer 2 and leading DeFi projects. Even if the price is halved, I still have the confidence to average down. After all, in a bull market, the leaders will eventually recover, but the premise is that you can survive until that day.
5. Short-term quick entries and exits; don't fall in love with your position.
The core of short-term trading is 'cut losses, not profits.' If the direction is wrong, cut losses immediately; don't fantasize about a rebound. I once became obsessed with the narrative of Stepn and stubbornly held onto a copycat project, resulting in expanded losses. Short-term trading is not investing; it's a probability game, and discipline is more important than skills.
6. Market rhythm: be decisive when fast, relax when slow.
In the early stages of a bull market (like now), capital rotation is extremely fast; the AI + crypto sector may rise by 50% in a week, then quickly switch to MEME coins. At this time, be bold in chasing strong sectors, but set stop-losses; in a bear market, patience in dollar-cost averaging is key. Don't always predict the market; instead, follow the trend.
7. Stop-loss is a necessary lesson for survival.
My principle: a single loss should not exceed 5% of the principal. For example, with a position of 100,000, the maximum stop-loss is 5,000 yuan. Many people hold onto losing positions because they feel 'painful losses,' but there are too many opportunities in the crypto space; preserving the principal is key to seizing the next opportunity like Ordinals or LRT.
8. Short-term indicators: 15-minute candlestick + KDJ.
For day trading, I mainly look at 15-minute candlesticks combined with the KDJ indicator. When the J value of KDJ enters the overbought zone (above 90), I reduce my position, and when it enters the oversold zone (below 10), I tentatively build my position. But remember, indicators are just aids; large on-chain transfers and collective voices from Twitter KOLs are more worth paying attention to.
9. Mindset determines the endpoint.
The most ironic thing in the crypto world is: anxiety when prices rise, fear when they fall. I've seen people blindly chase after a MEME coin out of fear of missing out, and others panic-sell when Bitcoin drops to 30,000 dollars. The solution is simple: write down your investment logic, such as 'Why buy this coin? What is the target market cap?' When the market fluctuates, refer back to this plan instead of scrolling through Twitter.
Written at the end.
The crypto world is never short of opportunities; what is lacking is people who can 'survive.' Those who have turned a few thousand into a million are merely capturing 1-2 trends + strict stop-loss + refusing FOMO. If you haven't broken through yet, ask yourself: is it that the opportunity hasn't come, or did you miss the signal amidst the noise?
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