Many newcomers to the crypto market follow the same path—accounts are almost hacked, and positions keep falling. I've seen many such situations; when people are desperate, they are most prone to making fatal mistakes.

A friend of mine was exactly like that. Three months ago, his account had only $1,000, and his trapped positions were still dropping. He was already on the verge of losing his composure and was ready to cut his losses. I advised him to use a capital splitting method to hold for 90 days, and now his account has exceeded $10,000. The last thing he asked me was: Why didn't I do this sooner?

Honestly, making money in the crypto world is not about luck at all. Putting $1,000 in the right place can truly help you steadily recover your losses. The key is how to allocate.

**First Iron Rule: Never go all-in**

This is the bottom line. Divide $1,000 into three accounts for operation.

$350 dedicated to intraday ultra-short-term trading. At most two trades per day, and immediately close when hitting the stop-loss level—don't fight the market. This part is for practice and trial-and-error, so stay relaxed.

Another $350 is used to ride the trend. Keep a close eye on the weekly chart, watch for MA5 and MA10 to form a golden cross. If there's no clear bullish pattern, just stay still. Enter only when the trend is very clear; this greatly increases the hit rate.

The remaining $300 is the "margin arsenal." Once a position is close to liquidation, top up immediately. Staying alive is the only way to turn the tide; if you die, there's no chance left.

**Entry signals are that simple**

The crypto market is like a high-speed meat grinder; not all times are suitable for entry. My signal system has three levels:

When the MA moving averages are not showing a bullish arrangement, stay in cash and wait. It’s okay if you don’t make money now—save your bullets for clearer opportunities.

When volume breaks through previous highs and the daily closing price stabilizes, that’s when you first build a position. Don’t be greedy; just test the waters.

When profits reach 30% of the initial capital, immediately take half of the profits off the table. Set a 10% trailing stop on the remaining position, allowing the remaining gains to run a bit longer. Many people get wiped out because of "being too greedy."

**Write a "life-and-death" statement before trading**

Before opening a position, think through two numbers: a 5% stop-loss, at which point the system automatically closes the position—no hesitation. When profits reach 10%, immediately move the stop-loss to the cost basis—then no matter if prices go up or down afterward, you’re in a profitable position.

Big news like Fed rate cuts or policy changes may be exciting, but don’t chase high blindly. The market is never lacking opportunities; what’s lacking are those who can protect their principal.

Money in the crypto space is never quick money. The real profit comes from "making fewer mistakes." Every time, make one mistake less than last time, and over time, compound interest will appear. Those who survive in the end are often not the smartest traders, but the ones who control risk best.