Your account only has a few hundred dollars, and you're trembling when opening trading software, only thinking about how to double your money quickly—are you familiar with this scene?

In my years in the crypto world, I’ve seen too many people start with just a few hundred dollars and disappear within a week. This circle is never short of stories of sudden fame, but what’s lacking are those who can last a long time. The fatal flaw for most small-capital traders is this: thinking "with little money, I must go all-in."

I once mentored a disciple who started with 500U and managed to grow it to 18,000U in three months. During the process, there were zero liquidations and zero margin calls. This is not some overnight wealth myth; it’s the result of strictly following the "survival rules."

**The biggest fear for small funds is "going all-in once"**

Since the money is small, just putting it all in—once that thought arises, it’s basically like going into battle without body armor; death is only a matter of time. Those who truly survive understand a core logic: capital allocation is the line between life and death.

I’ve summarized my three ironclad rules:

**Reconnaissance Position (30%)**—Focus on short-term fluctuations of BTC and ETH, aiming to take profits at 3%-5% and then exit. The goal here isn’t to make big money but to stay sensitive to the market, like a scout feeling out the pulse of the market.

**Main Position (30%)**—Only act after confirming a trend, riding the entire move. You might only trade 1-2 times a week, but each time you must have the execution strength to "hold on tight and not let go." This is where real profits come from.

**Insurance Position (40%)**—This is the last line of defense; no temptations allowed. How many people have fallen victim to black swan events? If you keep some reserve funds, you still have a chance to turn things around when emergencies happen.

**How to allocate specifically?**

Suppose you have 500U; divide it like this: 150U for short-term trades, 150U for swing trading, and 200U in cold storage. Sounds complicated? But this complication is the cost of survival.

Many people fail because they think this discipline is "too conservative." As a result, when a black swan hits, the entire account is wiped out. Conversely, those who seem to progress the slowest are still lively and active in this circle after three months or half a year.

Don’t gamble your life with just a few hundred dollars. Use systems and discipline to make money—that’s the real way for small-capital traders to turn things around.