Funds under 100,000 USDT are not suitable for buying ETH and BTC, as it is indeed impossible to turn around with BTC and ETH. Above 100,000 USDT, you can allocate 10% to BTC and ETH. As the capital increases, for example, when reaching 1 million dollars, it can be allocated to 90%, and further up to 10 million dollars can be allocated to 95%. Each capital stage has different strategies and survival methods. Do not blindly learn from anyone.
In the stage of 10,000 to 100,000 dollars, once the market is bad or too good, you will try to short contracts and end up failing midway. Because they see hope and want to achieve greater success, but do not want to waste a downward market, they convince themselves that they are trading geniuses or believe that a certain influential figure's direction for Bitcoin is a 100% truth to operate contracts. Then, unexpectedly, things do not go as planned with a sudden spike or reverse rally. Upon waking up, nearing liquidation, they still firmly believe that their chosen direction is correct, continuing to add margin until they have transferred all the USDT in their spot accounts to the USDT margin account, only to realize they have no way out. They just need to endure this most difficult market period, absolutely all losses will come back. At this point, they are no longer thinking about making money, only hoping to break even. Looking at the contract order with a -266% rate of return, they cannot even sleep, checking the account every few minutes, fearing they might get liquidated. Nervous, they just want to smoke another cigarette and take a sip of water to calm their anxiety, their back tense. For several nights, they are tortured around the liquidation price of 10%, feeling the dawn is near. With a dazed look, this day they just woke up, opened the account and saw it was okay, not liquidated. They got up to take a pee, washed their face, fearing their position would really liquidate. While washing their face, they could not help but take another look, thankfully it was still there. Just as they closed the bathroom door, their phone vibrated three times. In a panic, they quickly opened the phone, and there were three text messages: two prompting to add margin, one notifying liquidation. Their brain felt foggy, they still couldn't believe it. Reluctantly, they opened the app that had kept them awake all night, and it was gone—the contract interface had no open positions, it was blank. Not wanting to accept this reality, they slapped their head and grabbed their hair, switched to total assets, and saw 0.3 USDT... They had a cigarette, refreshed the app, and still saw 0.3 USDT... Opening a borrowing app, they remembered there might be some credit available. No credit on the business loan, switched to WeChat and checked the micro-loan, which indicated there was still 15,000 available. They were unwilling, applied for it, and were informed that this product could not serve them at the moment. Thinking about the various loans due this month totaling 26,000, with their monthly salary of 7,000, they lowered their head and asked good friends and older siblings. They did not dare to say they were trading cryptocurrencies, just saying they were renovating and needed a few thousand dollars. They smoothly borrowed 30,000, thinking that after paying this money, they would still be broke, and jumped back in. Looking at the 5000 USDT in the account, originally it was a 10x contract, thinking they could quickly get back the lost money, they opened a 20x position, feeling absolutely certain it wouldn't rise further. After opening the position, they pretended to be calm and chatted in the group. Suddenly, a Twitter notification popped up: BlackRock increased its holdings by 20,000 BTC today. They immediately switched to the app and saw a nearly 4% bullish candle. At the same time, the phone vibrated three times again. They knew there was no time, everything was too late, everything was over... Countless debt collection texts, various loan platform calls bombarded them, and inquiries from parents asking if they owed a lot of money... Regret, self-blame... They rummaged through all the accounts and addresses they had used in the past, looking for any overlooked funds, searching through their bank cards to see how much was left. They began to fabricate lies to those around them, started deceiving... In the group, their active presence was gone; the person who could speak 800 sentences a day never appeared again, and they stopped commenting on the market. They even thought they had made a profit on some coin and stopped trading, well, indeed, they no longer traded... had no money to trade. Years later, after a round of bull and bear markets, they finally caught a breath outside, debts mostly resolved, but still filled with obsession over the losses in the crypto space, still firmly believing this is the only place to turn things around. "What I have lost, I must get back!" Here they come again... armed with the lessons of past losses, ready to embrace the baptism of this market again! Cautious and prudent, after many trials, they stood back at 100,000 dollars! They transformed back into that confident crypto trader, but always harbored an inescapable fear and reverence for contracts.
Small funds wanting to survive should first not use all their capital to leverage contracts, nor should they touch Bitcoin and ETH. It's best to operate altcoins based on the periodic peaks and troughs of Bitcoin. If the funds on hand are under 1000 USDT, they are not suited for trading low-quality coins and Bitcoin or ETH; they can only trade on exchanges with low fees. Moreover, people with this amount of capital tend to have very poor cognitive abilities and safety awareness. It is best to trade on exchanges first. If they have gains and fortuitously reach 10,000 USDT, then they can try using 5% of their funds to experiment with low-quality coins on-chain. At this stage, both making and losing money should be run away immediately, holding on to precious principal.
Playing in the crypto world is simply a battle between retail investors and institutional investors. If you don't have front-line news or first-hand information, you can only be cut!
