Cryptocurrency circles have never been a casino, especially for small-cap players, every decision must follow a methodology.

A buddy of mine came to me last year with $500 asking for advice, his eyes full of uncertainty: "Can I really survive in the crypto world with such a small capital?" My answer was very straightforward: people who die in the crypto world are never because of small capital, but because they are too impatient and act too quickly. As a result, after three months, his account jumped to $18,000, and he never experienced a single liquidation during the entire process.

Many people say this is luck. But in reality, it’s not. The reason he was able to do it is because he strictly adhered to the three golden rules I have summarized from years of practical experience. Today, I will lay all these out, especially for friends whose capital does not exceed $1,000.

**First Rule: Always allocate your funds into three parts; survival is a hundred times more important than quick gains**

The smaller the capital, the less you should gamble everything on one shot. My approach is to divide the money into three parts, just like leading troops into battle—there must be front lines, rear support, and reserves.

Take out $150 for intraday short-term trading, focusing solely on Bitcoin and Ethereum, the two most liquid assets. When the price fluctuates by 3%-5%, act immediately, take a small profit, and exit. Never be greedy and wait for a big rally. Mindset is crucial: one wave is enough, don’t aim to become a fat cat in one go.

Another $150 is for swing trading. This part’s strategy is to wait for very clear market signals before acting. Once in, hold for 3 to 5 days, aiming to capture the most stable middle-range profits. Don’t seek the absolute top, just the safest portion of gains.

The most critical part is the third—$200, which is your emergency fund. No matter how crazy the market gets, don’t touch this money, because it’s your capital for turning things around. When all other parts have been wiped out, this $200 can help you stand up again.

People who go all-in and gamble recklessly, getting cocky when prices rise and crying when they fall, won’t last long. Truly experienced traders know to leave a bullet for themselves.

**Second Rule: Only eat the main body of the fish, don’t nibble on the bones**

The crypto market mostly oscillates repeatedly, especially frustrating. If you trade every day, your small capital isn’t enough to cover transaction fees, and you’ll lose even faster.

My ironclad rule is: stay put without signals, and act decisively when signals appear. Don’t trade just because you’re bored or looking for reasons. Every trade must be questioned: what’s the win rate? If you’re unsure, better to miss the opportunity than to gamble blindly.

Look at successful traders—they don’t trade very frequently. But every time they do, it’s precise. That’s the power of selective trading—quality always beats quantity.

**Third Rule: Set your stop-loss before entering the trade, don’t change it out of reluctance**

Many people have this problem: they don’t plan their exit before entering. As a result, once caught in a position, they start convincing themselves, “Just wait a bit, I’ll get back to break-even.” Wait and wait, and your capital is completely gone.

The correct approach is: before you press the buy button, calculate your stop-loss with a calculator. Suppose you aim for a 10% profit, then set your stop-loss at 5% loss. Once the price hits the stop-loss level, exit immediately—no hesitation.

This discipline is hard to maintain because everyone has a gambler’s mentality. But it’s this “difficulty” that separates true traders from coin gamblers. Small capital has even less room for error; one big loss can wipe out all previous efforts.

In summary: if you want to survive longer in the crypto world with small funds, you must be more strategic and disciplined than big players. Having less money is not a disadvantage; it actually makes you more cautious. Once you truly survive with small capital and accumulate larger funds, those disciplines will be ingrained in your bones. At that point, your earning speed will surprise you.