In the crypto world, there's a harsh reality: your principal size determines what strategies you can use to survive.

Everyone talks about long-term value investing, holding coins through bull markets. But the problem is, when you only have 30,000 yuan in capital and are facing next year's surgery costs, 1,500 yuan monthly rent, and a 6,000 yuan monthly salary, this theory starts to look a bit pale.

**Capital size determines the game rules**

Having 500,000 yuan in capital and having 30,000 yuan operate in completely different ways.

Those with 500,000 yuan can hold BTC, hold mainstream coins, and then wait peacefully. An annualized return of 30% is enough to make people wake up laughing. But when you only have 30,000 yuan, the pressure of life becomes a countdown timer. Doubling in three years? Sounds good, but life's bills won't wait for your compound interest.

A trader once calculated: with a conservative strategy, doubling in three years can't even cover next year's necessary expenses. But what if you leverage 50 times? A 3% market fluctuation can earn half a month's salary. Is it risky? Of course. But when the odds can cover the pressures of reality, the choice isn't really in your hands.

He said something impressive: "Poverty forces me to learn precise accounting. Low win rate isn't scary, but the odds must be fierce enough to change the trajectory of life."

This sounds like gambling, but it's actually rational decision-making within a probability framework.

**Three iron rules for small funds**

This trader set three unbreakable rules for himself, posted directly on his monitor, so he can see them every day:

First, the daily loss limit = two days' worth of food money, about 100 yuan. Once losses reach this number, immediately shut down and walk away. This move seems simple, but it's actually fighting human nature. Because the biggest mistake traders make is wanting to quickly recover losses after a setback, resulting in even bigger losses. Forcing shutdown breaks this cycle.

Second, the ratio of take profit to stop loss is 1:3. In other words, risking 1 yuan, aiming to earn 3 yuan. This isn't greed, but using math to compensate for a low win rate. If your win rate is only 30%, but the odds are 3:1, you can still survive probabilistically. Many "masters" have flashy strategies, but this simple and brutal formula is actually more practical.

Third, forcibly take 20% profit weekly into stablecoins. This is the most critical rule. Because numbers in the account can deceive, only truly withdrawing into stablecoins counts as real profit. This habit can turn a "gambling" mentality into a "withdrawal" mentality, letting profits land first, and the remaining is the real betting capital.

**Why small capital must be more ruthless**

Big funds can afford to be slow because time favors compound interest. But small funds can't afford to waste time, so every trade must aim at the odds target. This isn't encouragement of recklessness, but an acknowledgment of reality.

Many people think this approach is too risky, but they overlook a fact: if you don't have enough capital to enjoy the dividends of compound interest, then within limited time, odds become the only breakthrough.

The key is to have clear rules. Recklessness without rules is suicide; disciplined recklessness is playing a calculated game within a probability framework. The former is a gambler's mindset, the latter is a trader's mindset.

Small capital to survive must be more calm and precise than large funds.