I've seen too many beginners ask: "How do I start with only 1200 bucks?" Honestly, it's not about having more or less money, but whether your mindset is right.
There are two common strategies, both sounding reasonable but actually full of pitfalls:
One is going all-in on a single project, hoping that mainstream coins like $BTC or $SOL will multiply tenfold. Basically, it's gambling. The other is dividing your funds into 4-5 parts and spreading them across 3-4 promising altcoins, thinking that one of them will explode. It sounds like risk diversification, but in reality, your energy and cognitive capacity are limited, and spreading out means losing control.
But there is indeed a good approach: once a position rises, withdraw the principal first, and treat the remaining profit as free money to gamble with. This is called "zero-cost holding," which can be psychologically more comfortable. The problem is—spot trading is inherently slow, and most people can't wait; before doubling, they get shaken out by news and temptations, losing their composure.
The real obstacle for small funds is never the lack of opportunities:
High win rate and high reward-to-risk ratio are hard to achieve simultaneously. If you want to make ten times in one shot, you must endure more drawdowns. If your mindset can't handle it, you'll cut your losses at the worst times. Frequent trading eats up half your profits in fees and slippage. Most importantly, the vast majority of retail traders simply lack the ability to achieve consistent, stable profits—those who hold large positions survive because their win rate, risk control, and psychological resilience are all above yours.
So, for small funds, the key is simple: low drawdown + steady compound growth. Whether you trade spot or futures, the crucial point is whether you can keep making profits consistently.
This might be a bit harsh, but it must be said: if you can't do well with a few thousand dollars now, then even with a few million, the outcome will likely be the same—losses back to zero.
The only way out is to choose reliable opportunities, make fewer mistakes, and let time and compound interest do the work. In this market, "slow is fast" is not just a cliché, but a rule. Persistence is far more valuable than speed.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
I've seen too many beginners ask: "How do I start with only 1200 bucks?" Honestly, it's not about having more or less money, but whether your mindset is right.
There are two common strategies, both sounding reasonable but actually full of pitfalls:
One is going all-in on a single project, hoping that mainstream coins like $BTC or $SOL will multiply tenfold. Basically, it's gambling. The other is dividing your funds into 4-5 parts and spreading them across 3-4 promising altcoins, thinking that one of them will explode. It sounds like risk diversification, but in reality, your energy and cognitive capacity are limited, and spreading out means losing control.
But there is indeed a good approach: once a position rises, withdraw the principal first, and treat the remaining profit as free money to gamble with. This is called "zero-cost holding," which can be psychologically more comfortable. The problem is—spot trading is inherently slow, and most people can't wait; before doubling, they get shaken out by news and temptations, losing their composure.
The real obstacle for small funds is never the lack of opportunities:
High win rate and high reward-to-risk ratio are hard to achieve simultaneously. If you want to make ten times in one shot, you must endure more drawdowns. If your mindset can't handle it, you'll cut your losses at the worst times. Frequent trading eats up half your profits in fees and slippage. Most importantly, the vast majority of retail traders simply lack the ability to achieve consistent, stable profits—those who hold large positions survive because their win rate, risk control, and psychological resilience are all above yours.
So, for small funds, the key is simple: low drawdown + steady compound growth. Whether you trade spot or futures, the crucial point is whether you can keep making profits consistently.
This might be a bit harsh, but it must be said: if you can't do well with a few thousand dollars now, then even with a few million, the outcome will likely be the same—losses back to zero.
The only way out is to choose reliable opportunities, make fewer mistakes, and let time and compound interest do the work. In this market, "slow is fast" is not just a cliché, but a rule. Persistence is far more valuable than speed.