The cryptocurrency market is not a casino; those who gamble will eventually get cleaned out. Those who survive are the ones who understand strategy and maintain discipline.
Last year I mentored a beginner with just 500U in his account. At first, he was so nervous that he couldn't even place an order. I told him: "Don't guess the market, follow the rules, and even small money can grow." What happened? In a month, it grew to 5000U, and in three months, it reached 28,000U, without any liquidation, and every penny was earned wisely.
Some say it’s luck? It's really not. The core is these three rules of 'survival and profit,' which I will share with you today:
First, divide the capital into three parts and always leave an exit.
Don’t invest everything at once. Whether it’s 500U or 800U, split it into three parts:
30%-40% for intraday shorting: Only trade BTC and ETH, don’t touch altcoins. If it fluctuates 3%-5%, exit; earn one or two trades a day and stop, don’t stay up late.
30%-40% for swing trading: Wait for clear trend signals to enter, hold for three to five days, and withdraw 15%-20% profit. If there's no signal, stay in cash.
20%-30% as 'survival money': This amount should remain untouched, regardless of sharp spikes or black swan events. This is your last capital for a comeback.
Many people invest thousands of U in altcoins, ride the highs, cut losses during the lows, and end up with less and less. Remember: Winners always leave some money on the table.
Secondly, only follow the trend, don't waste time with consolidation.
The cryptocurrency market spends 80% of the time in consolidation, and frequent trading only sends transaction fees to the platform. A small principal cannot withstand deductions.
Simple judgment: Look at the 4-hour K line. If three consecutive candles shake within the same range, it’s consolidation; if it breaks out of the range with volume increasing by over 50%, that’s a trend, follow it.
When profits reach 12%, withdraw half of it. For example, if you earn 36U from 300U, take out 18U, and let the remaining 18U run. Money in your pocket feels secure, and with a small principal, you need stability, not aggression.
Experts do it this way: When not active, they lie in wait like hunters, but when they act, they must see results.
Thirdly, rules are greater than emotions; controlling your hands is essential for survival.
Many people don't not understand, they simply cannot control themselves. When they lose, they want to add to their position to average down; when they profit, they want to take more, only to end up giving back the profits.
Remember three iron rules:
Single trade loss not exceeding 3% of the principal: With 500U principal, the maximum loss is 15U, and you should exit automatically. Don't fantasize.
Profit over 5% to reduce position: Take half of the profit first, raise the stop loss to the cost price, and you won't lose no matter what.
Never add to a losing position: losing means you might be wrong, and adding to a losing position is equivalent to self-destruction. Cut your losses and wait for the next signal.
The logic of making money in the cryptocurrency market is very simple: you don’t need to be right every time, but you must follow the rules every time. The advantage of a small principal is flexibility, allowing quick entry and exit; the worst mindset is that of a gambler wanting to turn things around in one go.
Turning 800U into 20,000U is not based on luck, but on the wisdom of diversification, patience in waiting for trends, and discipline to control your hands. It's not scary to have a small principal; what's scary is having no method and charging blindly.
Starting today, follow these three rules. First protect your capital, then accumulate profits. You will find that turning things around is not that hard; the difficult part is whether you are willing to start by adhering to the rules.
