I remember when I first entered the market, I had 3000 yuan in capital, staring at the market while questioning life. After blowing up a few positions and chasing highs, I finally understood:
The crypto world is not a place to make money through impulse; it is a battlefield where systematic cognition is needed to survive.
If you are also a beginner with limited capital and want to make steady profits, I recommend carefully reviewing the following 6 practical principles.
✅ Principle One: Focus on one cryptocurrency; concentrating is more valuable than chasing hot trends.
Don't think about chasing highs across the board; jumping into new coins and chasing high-flying coins will leave you with nothing.
Beginners are better off selecting a core cryptocurrency (like BTC or ETH) and observing it over the long term:
When does it fluctuate the most? (For example, when U.S. stocks open?)
What level of decline is considered normal? What kind of drop indicates a structural breakdown?
What type of news is it most sensitive to? (For example, ETF, on-chain data, regulatory rumors)
Once you get familiar with the rhythm of a cryptocurrency, your winning rate will naturally improve. Long-term observation beats short-term gambling.
✅ Principle Two: Avoid trading during periods of extreme market fluctuations.
Prices can skyrocket or plummet in a short time, often accompanied by amplified emotions.
When it rises 10%, you fear missing out and jump in, only to get stuck right after buying.
When it drops 15%, you panic and cut losses, and as soon as you do, it rebounds.
Recommendation: Don't make moves within 1 hour of a violent rise or fall.
Step away from the screen, give the market some time to calm down, and give yourself some breathing space.
✅ Principle Three: Always leave some 'spare funds' to avoid impulsive full positions.
Regardless of whether your capital is 10,000 or 1,000, at least keep 50% of your ammo unspent.
Increase positions when the trend is clear;
Buy more to average down costs during sharp market declines;
The most important thing is—if you make a wrong judgment, there is still a chance to turn it around.
Those who are fully invested have no right to talk logic; they can only go with the flow.
✅ Principle Four: Set 'take profit + stop loss' for every trade, allowing the system to make rational decisions for you.
Stop relying on 'gut feelings' for trading.
Before entering the market, set your exit position:
Automatically take profit at 15% to lock in gains;
Automatically stop loss at an 8% drawdown to control risk.
If you don't set a 'bottom line', the market will eventually make you pay tuition. Experts rely not on speed but on discipline.
✅ Principle Five: Spend a few days learning the basics of technical analysis.
I often say: Not understanding candlestick charts is like driving with your eyes closed.
Spend 3 days understanding the following points:
Candlestick structure: closing price, trading volume; red bars = strong buying pressure, green bars = strong selling pressure;
Moving average logic: 5-day for short-term, 20-day for medium-term; price above the moving average = strong;
Position management: No single currency should exceed 30% of total funds.
These things are not difficult, but they are enough to help you avoid the most common traps.
✅ Principle Six: Buy and sell in batches to reduce volatility risk.
Whether buying or selling, try to complete in 3 batches:
Buying: Buy 30% today, buy another 30% if it drops tomorrow, and confirm the stop decline before buying another 40%;
Selling: Sell 20% at a 5% increase, sell another 30% at a 10% increase, and sell the remaining at a 15% increase.
The benefit of doing this is:
You won't suffer heavy losses due to a single misjudgment, and it’s more stable in the long run.
The real threshold in the crypto world has never been the capital, but rather cognition and discipline.
Control your impulses, establish rules, and you'll truly be able to escape the fate of being ruled by market conditions.
Having little capital isn't scary; what's scary is acting randomly without a plan.
Master these 6 core mental strategies, and even if you're just a beginner now, you can become a consistently profitable trader in 3 months.
