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Having been in the crypto space for many years, the most common scenario is seeing newcomers come in with the dream of "turning things around in one shot," only to end up losing everything. Especially those with small capital, they are the most susceptible to being swallowed by this gambler's mentality.
I once mentored a young guy who started with 800U, and in four months, he grew it to 19,000U, then in another two months, he reached 28,000U. He never once got liquidated during the process. This is not some myth; it’s the result of thoroughly understanding the strategy and executing it step by step. Today, I want to share this experience, especially as a reference for friends with capital below 5,000U.
**Less Capital Means More Caution**
There’s a common misconception in the crypto world: "With less capital, you have to gamble big to turn things around." Wrong. The real logic is that small money wants to grow into big money, and it’s not about making a huge profit in one shot, but about whether you can keep trading consistently. The key is not to deplete your capital.
Money management is the bottom line for survival. My advice is to divide your funds into three parts:
First, short-term trading capital, accounting for 30%-40%. Only trade mainstream coins with good liquidity and clear volatility, like Bitcoin and Ethereum. Set a profit target of 2%-4% per trade and take profits when reached. Exit after earning. This part focuses on frequency, not on making big profits from a single trade.
Second, swing trading capital, accounting for 30%. Don’t trade randomly every day; wait for real opportunities to come. Hold positions for 2-4 days, aiming for a steady rhythm.
Third, emergency fund, accounting for 30%-40%. No matter how extreme the market conditions, don’t touch this bottom line. This money is your chip to turn things around during the toughest times.
Most beginners tend to go all-in with their entire capital at once. With such market volatility, you’re very likely to buy at the top and get stuck, unable to do anything. Gradually entering the market and leaving room for maneuvering is the real way to survive longer.