Family, who understands! Every day I can see posts like 'Invest 5000 and lose it all in half a month, crying while leaving the market.' Even through the screen, you can feel that kind of despair. But to be honest, in the crypto world, small capital doesn't lose money; it loses the understanding of the fundamental logic that 'staying alive is more important than getting rich quickly'!
As someone who has been in the crypto space for 5 years, I've seen too many people rush in with the fantasy of 'turning it around overnight,' only to be crushed by the volatility. I've also seen my cousin, who is a tough guy, turn an initial fund of 600 into 28,000. The key is just two words: don't be greedy!
How magical is the current crypto market? On one side, altcoins are shouting 'hundred times myth' every day, while on the other, the top 10 addresses hold 80% of the chips in control schemes. Small funds rushing in just provide liquidity to large players; mainstream assets are stable, but it’s hard to withstand people panicking to take profits after a 5% rise or frantically averaging down after a 3% drop, with transaction fees + back-and-forth losses quickly gnawing down the principal to pocket change.
Today, I crushed my cousin's practical insights + my 5 years of risk control experience into lessons. For small capital to survive and earn slowly, remember these 3 iron rules!
1. Divide the principal into 3 parts, engrave 'survival' into DNA.
Don't throw all your money in to gamble! My cousin's strategy was to split 600 into three parts:
30% 'High-Risk Position' (180): Only focus on top mainstream assets, grabbing small fluctuations of 2-3 points and then exiting, never getting attached to battles;
25% 'Layout Position' (150): Target another mainstream asset, wait for a pullback to key support levels before entering in batches, aiming for medium-term holding;
25% 'Backup Position' (150): Lock it in a cold wallet and don't touch it! Even in extreme market conditions, there’s capital to restart; this is the last resort.
Last year, top assets consolidated for a month, while those around me were switching to altcoins for short-term gains; my cousin was held back by me and didn’t act recklessly. In the end, the last wave of 8% increase brought him back to break even, plus over 4 times profit — the biggest fear for small capital is 'a hit here and a hit there.' Focusing on core assets is the right path.
2. Two red lines must not be crossed; the more you guard them, the more you earn.
Stop-loss line = survival line: the maximum loss per trade is 1% of the principal! For instance, in a 180 high-risk position, if it drops by 1.8, decisively cut losses; don't think 'hold on and it will rebound.' In the crypto circle, there are 10 times more cases of 'holding until zero' than of making a profit;
Profits must be locked in: as long as profits exceed 3 points, immediately reduce your position by half! Don't be greedy for 'selling too early'; the USDT you earn is real money, while what you haven't sold is just a number on paper. My cousin once bought and then lost 0.8, so he cut losses, and later that asset dropped directly by 15%, luckily he didn’t stubbornly hold on.
As an analyst, I must say: the enemy of small capital is not volatility, but 'wishful thinking.' Strictly execute risk control; even if it earns slowly, it is better than losing everything.
3. During sideways markets: 'not moving' is 100 times better than 'moving around.'
The sideways market tests human nature the most! Watching others' altcoins rise makes you itchy to switch positions? I've seen too many people frequently trading during sideways periods, and transaction fees gnawing their principal down to pocket change, resulting in them being empty-handed when top assets surge.
My cousin almost fell into this trap last year, tempted by a certain altcoin shouting 'hundred times' but after I scolded him, he held onto mainstream assets, and finally waited for the market. Opportunities in the crypto market are always present; the key is whether you can endure until the opportunity arrives. Don't let transaction fees and reckless operations prematurely end your journey.
Honestly, the core of small capital in the crypto circle is not 'fast gains', but 'holding on.' I've seen too many comeback cases, none of which were achieved through gambling, all achieved through steady efforts and accumulating little by little.
If you are now holding small capital and feeling lost and helpless, afraid of falling into traps and losing everything, and don't know how to position, follow me!