Cryptocurrency has never been a casino, especially when your principal is small, you need to have a plan.

When I first entered the crypto world, I spent three years staring at the K-line chart—getting panicked at MACD turns, trembling at RSI overbought. Guess the final result? I lost all my savings from working and even accumulated a lot of debt. Only later did I realize that those who survive in the crypto space are never the smartest, but those who are most stable and disciplined.

Two years ago, I mentored a beginner. His first deposit was only 1200U, and he was trembling like stepping on a landmine. I told him one thing: "Follow the rules, don’t mess around." Five months later, his account grew to 32,000U, and he never liquidated a position prematurely. Some say it was luck? Wrong. This is the result of discipline and mindset. Today, I’m sharing all these insights.

**First Tip: Divide your money into three parts and always leave yourself an exit**

The biggest danger for those with little capital is the gambler’s mindset of "all-in." The first plan I made for that beginner was to split the 1200U into three parts:

- 500U for intraday short-term trading, only trading BTC and ETH, setting a 3%-5% profit target and exiting, never being greedy.

- 400U for swing trading, waiting for opportunities, and once the trend is confirmed, acting immediately.

- The remaining 300U as reserve funds, not trading when the timing isn’t right.

This is similar to the traditional investment principle of "don’t put all your eggs in one basket." When the market is big, going all-in is like driving without a seatbelt—an emergency stop can cause a crash. Diversifying risk isn’t cowardice; it’s survival.

**Second Tip: Take profits and cut losses ruthlessly, don’t wait to break even**

Many people see their account balance dropping and think, "Wait a bit, I can recover." I understand this mentality, but those who think like this are often the ones losing everything in the casino.

My rule is simple: take profits immediately when the target is reached. Lock in 3%-5% gains; even small wins are wins. Some say this is too conservative? I ask you, have you seen anyone go bankrupt because they were too conservative? No. But many have blown up their accounts due to greed.

Cut losses even more ruthlessly. If the loss exceeds 2%, I exit immediately. No matter how the market moves afterward, I don’t look back. Why? Because preserving your principal is harder than making money. If your 1200U becomes 0U, no matter how good your trades, it’s useless.

**Third Tip: Choose good coins, don’t chase the trend**

Every day, new projects pop up in crypto, all claiming to be "the next Bitcoin." Beginners are most easily fooled by this. My advice: only trade mainstream coins, only those with liquidity and consensus.

BTC, ETH—these have market bottoms even in bad times. But those small coins? Going from 100 dollars to 1 dollar can happen in a blink. Small capital can’t withstand such volatility.

When choosing coins, ask yourself three questions: How long has this coin been around? Is the trading volume sufficient? What about the fundamentals behind it? If you can’t answer these, don’t touch it.

**Final words**

My student continued for another two years, and now his account has six figures. He told me that the hardest three months were at the beginning, because he had to hold back from chasing trends or gambling. But after enduring, everything changed.

Crypto can be profitable, but the prerequisite is surviving long enough. Small capital isn’t the problem; your mindset and discipline are. When you can steadily grow small amounts into large sums, that’s when you truly understand this market.