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Funds in the account are not abundant; instead, you need to learn self-control. First, protect the principal, and postpone the profit-making plans.
Last year, a friend had only $500 in his account and asked me for emergency help. He was trembling with his finger on the order button, all he could think about was "how to double quickly." I told him a straightforward truth: "With small funds, learn not to get liquidated first; making money is a later matter."
Three months later? He went from $500 to $18,000, with zero liquidation and zero margin top-ups throughout the process. This wasn’t luck; it was following a set of rules.
In the crypto market, it’s less about making money and more about surviving longer. Those with account balances below $1,000 need to understand this even more. The market is not a casino; it’s a survival contest.
**Step 1: Divide your money into three parts, each with its own approach**
The most common way small accounts get wiped out is by going all-in at once. Always thinking one trade will determine everything, but a single slip can bring you back to zero, leaving no chance to turn things around.
My advice is straightforward: split into three parts, with 30%, 30%, and 40%. Each portion has a clear purpose and must not be used for anything else.
**First part: for short-term trading** (30%)
Only trade mainstream coins like BTC and ETH. Exit decisively if volatility exceeds 3%. Mainstream coins are good because of high liquidity and relatively mild fluctuations, making them ideal for small funds to practice.
New traders often make the mistake of chasing rallies and panic selling during dips. Such operations have very low winning chances. The advantage of mainstream coins is their stability—you can learn what stop-loss and risk management mean here.
**Second part: for swing trading** (30%)
Enter only when daily candles show a volume breakout or a break below a key level, and hold no more than 5 days once in. The market spends about 70% of the time in consolidation; genuine trending opportunities are rare. Those who try to catch every fluctuation often get slapped back.
Instead of frequent trading, be patient and wait for higher-confidence opportunities. Although this approach seems slow, the probability of account survival is much higher than with frequent trades.
**Third part: the safety fund** (40%)
Use this only in two cases: one, to establish long-term positions at major bottom zones; two, as backup capital for emergency top-ups. In other words, this is your life-saving money—don’t touch it unless absolutely necessary.
Many liquidation stories start with "pushing all chips in." A 38% drawdown can wipe out the entire principal—that’s the cost of not leaving an escape route.
**The key is discipline**
The rules themselves are not complicated; the hard part is actually following them. When your account has a 20% unrealized profit, can you resist the temptation to add more? When the market crashes, can you top up according to plan instead of panicking and cutting losses? This tests not your technical analysis skills but your mental resilience and discipline.
When your account is small, instead of chasing quick riches, focus on surviving longer. The longer you survive, the more opportunities will come naturally.