In the cryptocurrency market, experiencing losses or getting caught in emotional trading is not uncommon. However, with a clear method, discipline, and reasonable calculations, small capital can absolutely achieve sustainable growth. Below is a 5-step strategy designed to control risks, optimize profits, and leverage the power of compound interest.

1. Divide Capital into 5 Parts

The total capital should be divided into 5 equal parts. Only keep 1 part in the trading wallet, while the rest is locked in a cold wallet. Each time you want to open a new trade, you need to 'disburse' each part. This helps slow down the decision-making process, minimizes emotional trading, and eliminates up to 90% of unreasonable orders.

2. Focus on Spot Trading with Top Coins

Only choose cryptocurrencies that are within the Top 100 by market capitalization and have a trading volume of over 100 million USD/day. Absolutely avoid leverage or chasing FOMO. In the early stages, just use a small amount (for example, 1,000U) to get accustomed to market fluctuations while cultivating patience.

3. Average Down with Tight Stop-loss

The principle is to buy when the price drops. If the price drops by 10% after the first purchase, you may buy more at the same volume, up to three times to average the price. When the price rebounds by 5%, the portfolio may break even. If the price continues to drop even after three purchases, you need to cut losses immediately, ensuring that the loss for each trade does not exceed 6%.

4. Take Profit in a Timely Manner

When profits reach 10%, sell half of the quantity immediately and withdraw the profits from the trading wallet. The remaining part continues to maintain the position. This principle helps preserve profits, reduce psychological pressure, and maintain stability when the market fluctuates.

5. Profit Cycles and Compounding

Profits withdrawn after several rounds of accumulation (for example, 2,000U) can be reinvested in a new cycle. With the model: spot – average buying – reducing position, profits are multiplied exponentially. If discipline is maintained, the annual capital growth rate can reach approximately 1.79 times, and even stronger during favorable market conditions.

Conclusion

This strategy does not promise 'quick wealth', but focuses on discipline and perseverance. When applied correctly, it becomes a powerful tool to turn small capital into significant assets, harnessing the power of compound interest and minimizing risks in a volatile market.