Many people in the crypto space lose their principal within just a few months, and the core issue is often not market judgment but simply not thinking through how to allocate funds.

Having mentored many newcomers, the most memorable case is a young man who entered with 800U and quickly grew his account to 18,000U in two months. Now his account size is approaching 30,000U, and he has never experienced a margin call during the process. Don’t jump to say he’s just lucky—actually, behind this success are three strict rules at work.

**First Dimension: Funds Should Always Be Divided Into Three Parts**

Using 800U as an example, the most classic way to split is:

- 300U for intraday fluctuations. Focus on small movements in BTC and ETH, entering and exiting on 3-5% opportunities. Greed is the biggest poison.
- 300U for swing trading. When a major trend appears (such as spot ETF approval or Federal Reserve policy shifts), take a position that can ride 3-5 days of movement, emphasizing safety over speed.
- 400U at the bottom of the account, serving as a lifeline. No matter how the market falls or rises, this money is held firmly, providing confidence to turn the tide at the worst moments.

The problem with many people? They put a few hundred dollars all in one position, get excited when the market slightly improves, and panic when it drops a couple of points. Survival is the top priority. With enough capital to stay alive, there’s a chance to recover.

**Second Dimension: When the Trend Is Unclear, Stay Put**

The brutal reality of the crypto market: most of the time, it wears down people’s mental state. Frequent trading results in gradually giving away money to exchange fees.

When the market has no clear direction, it’s more profitable to just hold and watch than to trade frequently. Wait until the trend truly takes shape—such as BTC holding key support or ETH breaking previous highs—then enter at the right moment. When profits reach 15% of the principal, withdraw half immediately. The remaining part should be allowed to continue generating profits. The real money is the money in your pocket; the numbers in your account are just figures.

**Third Dimension: Let Rules Constrain Trading**

Set a stop-loss at 1.5%. When hit, stop immediately—absolutely no luck-based thinking. When profits exceed 3%, cut half of the position. Let the remaining part continue to run with the profits. When losing, never think about adding to the position to recover; doing so only deepens the loss and increases panic.

The logic of making money is simple—correct judgment every time is not necessary, but every execution must strictly follow the rules. Emotions and accounts can only survive together.

Having less principal is not scary; what’s truly frightening is always dreaming of “recovering in one wave.” Growing from 800U to 30,000U is not about luck; it’s about not being greedy, not panicking, and maintaining discipline. If you’re still tossing and turning over a few dollars’ movement, unsure how to allocate funds, wait for the right market conditions, or set stops properly, then take a step back. Master these three rules thoroughly, and you’ll avoid many detours.