Every time I see friends in trading groups with accounts under 2000U chasing every rise and panic selling, I always want to remind them—crypto is not a casino; playing with small capital relies on patience and rules.

Last year, I met a young guy new to the scene, with only $1,200 in his account, trembling when placing orders. I shared a set of methods with him. After three months, his account grew to $15,000, and in five months, it reached $32,000, all without a single liquidation. He asked me what my secret was, and I told him it was these three ironclad rules.

**Rule 1: Divide your funds into three parts, each with its own approach**

The smaller the principal, the more you must avoid putting all your eggs in one basket. I’ve seen many people throw thousands of dollars into a full position, getting excited during gains and panicking during dips, cutting losses—this way, you can’t grow big.

My approach is to split the money into three parts:

First part: $500, dedicated to intraday short-term trading. Only trade Bitcoin and Ethereum, the most liquid assets. Exit decisively with a 3%-5% price fluctuation, never greedy. This part is for practicing feel.

Second part: $400, for swing trading. Capture clearer trend opportunities, usually holding for 3-5 days, aiming for steady gains, not chasing huge profits.

Third part: $300, an absolute no-go zone. No matter how strong the trend, don’t touch it. This is your capital for recovery if you make a mistake.

Many people don’t understand why to keep cash. Actually, cash isn’t just a trading tool; it’s also your “ballast” for mindset. Having cash in crypto gives you options. When opportunities come, you can act.

**Rule 2: Eat the fish belly, not the whole fish**

Most of the market time is sideways, and true trending periods are rare. The biggest fear with small capital is chasing highs. My habit is to wait for trend confirmation before entering. I don’t aim to catch the entire move but want each trade to be safe.

For example, if Bitcoin starts rising from a low point, I usually don’t rush to buy within the first 20% gain. I wait until it reaches 30%-40%, when the trend is clearer, then enter. This way, I earn less but with a much higher win rate. The remaining 50%-70% of the move is enough; why chase the very top or bottom?

**Rule 3: Discipline is more valuable than luck**

I’ve seen too many accounts wiped out by impulsive moves. You must set strict rules: for example, a fixed stop-loss at 3%-5%; set profit targets, like closing at 10% profit. Don’t expect prices to keep rising forever.

It sounds simple, but few can truly stick to it. Most people want maximum gains during upward moves and hold onto hope during declines. The result is often a big drop that wipes out everything.

The advantage of small capital is flexibility—you don’t need to accumulate slowly like large funds. But this advantage only shows when you have discipline. Without rules, even a small account can be wiped out.

Finally, I want to say that there are real opportunities in crypto, but they are reserved for those with patience and self-discipline. Don’t be tempted by stories of overnight riches; such stories are ten times less common. Liquidation is the norm. Keep your rules in check, and patience will bring profits.