“A Must-Read for Small Investors: How to Avoid Becoming a Losing Crypto Trader?”

For those with a cryptocurrency portfolio under $1,000, trading isn't easy, especially for beginners. Those investing $500 to $1,000 are not really investors, but traders. Most losses stem from this misunderstanding.

Common Mistakes You Make:

Long-term investing with a trader's budget.

With only $500 in hand, you simply cannot wait for years to see a bull market. However, many beginners, once they buy random coins, hope for a tenfold return and then hold blindly. The usual outcome is:

Checking the market multiple times a day, with emotions fluctuating with the price.

Panic when encountering a downturn.

Emotional selling or regretting decisions.

This is not investing; it's emotional gambling.

What Should You Do?

Here’s how to use your $500:

Swing Trading: Aim for a 20%-50% return in the short term.

A profit of $150-$200 is realistically achievable; this is true wealth growth.

Investment Strategy for $1,000:

$500 for long-term investment: Select assets and wait patiently for appreciation.

$500 for short-term trading: Enhance skills and grow your account by learning market trends.

Your Trading Rules:

The risk for each trade should not exceed $200.

If you incur a loss, set aside $300 for dollar-cost averaging to reduce risk.

Smart traders know how to control risk rather than go with the flow.

If your portfolio is under $1,000, quickly adjust your strategy. Grow step by step, avoid blindly following trends, and truly achieve stable profits.