Trading in the crypto world is all about mindset and discipline, not some casino game.

Having been in this circle for many years, I’ve seen too many newcomers rushing to get rich quick, eager to become a millionaire overnight. Especially those with tight capital, who are very prone to falling into the big traps of "All In" and "Hodling" (or "Shuffling"). Last year, I personally guided a newcomer with an initial account of $1,200, and over five months, the account grew to $32,000, all without ever getting liquidated.

The key is not luck. Honestly, it’s about having a plan, sticking to principles, and not losing your mind. Today, I’ll break down this methodology, especially for small-scale players.

**First Weapon: Divide your principal into three parts, each with its own role**

What’s the biggest mistake when you have a small capital? Going all-in. Once the K-line fluctuates, your mindset collapses, and the final outcome is often a forced exit at a loss. The first iron rule I give to this newcomer is diversification.

Split the $1,200 into three parts. The first $500 is for intraday short-term trading, focusing only on mainstream coins like Bitcoin and Ethereum, which have high liquidity and manageable volatility. Take profits at 3%-5% gains, don’t overthink it. The purpose of this is simple — to maintain a sense of the market, earn some small profits, and keep risk at the lowest possible level.

The second $400 is for swing trading. This money requires patience; only trade when the trend is relatively clear. Usually hold positions for 3 to 5 days, aiming for more stable swing gains. If the opportunity isn’t right, don’t move. Knowing how to wait is actually the biggest advantage.

The third $300 is a moat, no matter how tempting the market is, keep this money firmly in place. This is your last line of defense against extreme market conditions and also your psychological safety net.