Many people enter the crypto world thinking they will get rich overnight, but the result is often losing everything in one night. I've seen too many traders with not much capital get liquidated due to improper operations, and I've also seen others steadily rise with the same initial capital. What's the difference? It's not luck; it's the method.

A newcomer started with 800U and rolled it to 18,000U in two months, now close to 30,000U, without getting liquidated even once during the entire process. This is not a survivor bias, but rather operating according to clear rules. I also came out of this methodology and now can earn stable profits without having to watch the market every day.

**First Line of Defense: Fund Layering, Refuse Full Position**

800U should be divided into three parts for use. The first part, 300U, is for short-term fluctuations—focus on the slight rise and fall of BTC and ETH, and seize opportunities of 3-5 points to exit immediately, without being greedy. The second part, 300U, is for medium-term swings—wait for major events such as ETF news or changes in Federal Reserve policies, holding positions for about 3-5 days, aiming for stable returns. Finally, 400U should be kept at the base level, untouched regardless of market fluctuations, as this is the emergency principal.

Why is it divided this way? Because many people gamble their entire position with just a few hundred dollars. When it rises, their mood rises with it; when it falls, they feel like smashing their keyboards. This mindset is the most likely to lead to wrong decisions at critical moments. Remember an iron rule: as long as you're alive, there's a chance to turn things around; if you're dead, there is none.

**Second Line of Defense: Capture Trends, Reduce Ineffective Operations**

The crypto world mostly just goes sideways, frustrating people. Every day of going in and out, the fees you pay to the exchange can be enough to wipe out a small account. The key is to learn to "play dead" — when there is no clear trend, just sit still; watching shows or sleeping is better than making random trades. Only when BTC confirms it has stabilized at key support levels, or ETH breaks through previous highs, is it time to enter the market.

Once you go in, you need to set clear profit points. When the profit reaches 15% of the principal, withdraw half of the profit and put it into your wallet, so that even if there are losses later, you won't incur a loss. Those who truly make money understand this principle well: usually, they act like they are dead, but when the opportunity arises, they take a big bite and then quickly retreat.

**Third line of defense: Rule-driven, eliminate emotions**

Set the stop loss at 1.5%. When it reaches this number, you must cut it off without any luck mentality. At the same time, when the profit exceeds 3%, you should reduce half of your position and let the remaining profit continue to run. The most dangerous operation is to want to recover losses by increasing positions after a loss - this will only expand the losses and make the mindset even more chaotic.

The essence of trading is to use rules to constrain your behavior and not let emotions dominate your decisions. You do not need to accurately predict the market every time, but you must operate according to established rules each time. These two seemingly simple requirements can leave 90% of retail investors behind.

From the experience of going from 800U to now, the key has never been the amount of capital, but the mindset. Those who think about "recovering all losses in one go" will always lose money, while those who think about "steady growth" can see the power of compound interest. If you are losing sleep over the fluctuations of a few dozen dollars, and don't know how to allocate funds scientifically, judge timing, or set stop-losses, then you need to change your thinking. Avoid two years of detours and start by establishing a clear trading system.