There are often questions: Is a few thousand dollars of principal in the crypto world only luck? My answer is no.

My friend was a trading novice last year, with only 800U in his account eight months ago. He learned trading from me, and now his account has stabilized above 30,000U. The key point is—throughout this process, there was zero liquidation. This isn’t some genius story; it’s simply executing a set of strategies effectively.

From my own experience, there are two key factors for turning small funds around: first, overcoming psychological barriers; second, using strategies to deal with the market.

**Step 1: Capital allocation system,彻底 say goodbye to all-in mentality**

Most beginners make the same mistake—wanting to bet big with little capital. I immediately dismiss this idea and divide the 800U into three parts, each with its own purpose.

**Part 1: Day trading (300U)**

Focus only on top-tier coins like BTC and ETH, which have high liquidity and are less susceptible to manipulation by whales. I advise him to concentrate on 4-hour K-line charts, entering at technical support levels. Take profits as soon as 3-5% gains are achieved each time. It sounds like earning only 10-15U daily, but accumulated over a month, it adds up to over 300U. This is the start of the snowball effect.

**Part 2: Swing trading (300U)**

The core of swing trading is “waiting.” Waiting for what? Waiting for high-confidence opportunities such as policy implementation, technological upgrades, or major events. Market reactions are often intense. By positioning early, holding for a few days, you can capture 10-15% gains and then exit safely. He once operated during a major coin upgrade, and this capital doubled directly.

**Part 3: Reserve capital (400U)**

This part isn’t used immediately. When the market experiences a major correction or a coin drops to its historical support level, that’s when it comes into play. Using the reserve well allows you to buy the best quality chips at the lowest points.

The advantage of this three-part strategy is obvious: risk is diversified, income sources are multiple, and psychological pressure is much lower. Without all your money on the line, you can stay clear-headed in every trade.