There are no shortages of people in the crypto world who chase quick profits; what’s lacking are those who can survive long-term. The tighter the funds, the more you need to act like an old desert hunter—every step carefully calculated.

Last year, I had a friend whose account balance was only 500U. When placing an order, his hands were trembling, filled with fantasies of "getting rich overnight." I told him a harsh truth at the time: "Playing with small funds in trading, the first rule isn’t to make money, it’s to avoid liquidation."

Three months later, his account grew from 500U to 18,000U. Throughout the process, he experienced zero liquidations and zero margin top-ups. This wasn’t some black swan event; he simply executed three "life-saving rules" to the extreme.

**Rule 1: Divide your funds into three parts, always leave yourself a way out**

Full-position traders in the crypto space can be wiped out with a single needle prick. Those who understand diversification won’t die even in extreme market conditions. Here’s how he allocated his funds:

150U for short-term trading—only trading BTC and ETH, exiting immediately if the price moves 3%, no greed.

150U for swing trading—waiting for daily chart volume breakthroughs or breakdown signals before acting, holding each position no longer than five days.

200U as a safety fund—only used when the market is truly crazy; it’s the seed for a turnaround, and normally stays untouched.

The essence of small funds is not to be wiped out by the market all at once. Having an exit route means you have the chips to gamble when the market gives you a chance.

**Rule 2: Follow the trend, avoid trading in consolidation**

The market spends about 70% of the time wandering aimlessly. Trading frequently during this period is just giving money to the exchange.

His entry logic is simple: only enter when a 15-minute K-line shows continuous volume increase and volume breaks previous highs; otherwise, stay on the sidelines. The benefit of this approach is that you always chase the trend, rather than getting repeatedly cut in choppy sideways movements.

**Rule 3: For high-risk trades, only bet small**

Never risk more than 50U on any single trade. Even if the opportunity looks great, don’t violate this rule. This way, even if your judgment is wrong, you won’t get seriously hurt.

Small funds are like survival in the wilderness—you’re not trying to earn quickly, but to survive as long as possible. As long as you don’t get wiped out, sooner or later, a big market move will come.