Honestly, the biggest fear when first entering the crypto space is having a small principal and being unable to withstand big losses. But this is precisely the best stage for cultivation.

When I started, I only had 1500U. At that time, I saw others sharing daily earnings of several thousand U, and I was indeed eager. But I quickly understood a principle: when you have little money, staying alive is more important than making quick profits. Four months later, my account reached 19,000U, and after two more months, it directly doubled to 35,000U. Throughout the process, I never blew up a position.

This is not luck, nor did I hit a hundredfold coin. It’s purely because I strictly followed the methodology below.

**First Trick: Three-Fold Capital Allocation, Stability Rises Straight Up**

I divided the 1500U into three parts, each 500U, and kept the ratio fixed:

The first part is for intraday short-term trading. It involves only Bitcoin and Ethereum, the two most liquid assets. When volatility exceeds 3%, I immediately exit and take profits. The goal is simple—earn enough for daily expenses beyond trading fees. This part helps maintain a feel for the market and contributes to stable daily income.

The second part follows a swing trading approach. I only act when the trend is clear—for example, breaking through key resistance levels or bouncing at support levels. Usually, holding for 2 to 4 days is enough. This portion carries slightly higher risk but also has a higher win rate. My trick is to only eat the middle part of the fish—no greed for the head or chasing the tail.

The third part is the insurance card. No matter how the market falls, I avoid touching it. Its purpose is to leave myself a chance to turn things around. I’ve seen too many traders whose accounts shrink to a hundred or two hundred dollars, and they either start gambling or give up altogether. Having this safety net prevents the psychological defense line from collapsing easily.

**Second Trick: Only Follow Trends, Don’t Give Money Away in Ranges**

In crypto, 80% of the time, the market is sideways. Trading frequently during these times is basically working for the exchange. My approach is: if signals are unclear, rest; if I have open positions, hold them. There’s no need to operate constantly.

What constitutes a clear signal? For example, a break of daily support or resistance, significant increase in volume, or a shift in market sentiment—these are worth acting on. Once you’re in, learn to hold. Many people’s accounts fluctuate wildly because they trade too often, and trading fees and slippage are enough to drain profits.

My experience is that 3 to 5 trades per week are enough; the rest of the time should be spent observing and learning. Quality always beats quantity.

**Third Trick: Risk Control Is the Eternal First Lesson**

This almost determines whether you can survive later on. I set the stop-loss points for each trade in advance, and I never deviate from them. Even if the trade ends up profitable, I reflect based on the preset stop-loss, not after-the-fact hindsight.

For traders with small capital, a single fatal loss might require several times the gains to recover. Losing 50 from 100 means you need to double to get back. This math must be understood clearly.

Another point: don’t treat trading like gambling. I’ve seen some people increase leverage and expand positions when their accounts grow, then cut everything when they fall. Such behavior usually ends the same way in the end.

**Final Words**

From 1500U to now’s size, the greatest gain isn’t how much money I made, but the discipline I developed. In crypto, traders who last long share a common trait: they don’t change their strategy because of a single success, nor do they give up after a failure.

Having a small principal is actually an advantage. Because the cost of failure is low, you can verify your understanding and methods in a relatively safe way. Once you accumulate to a certain level, this system can help you generate steady income.