Honestly, there's one issue that really gnaws at me: your crypto account's principal hasn't even reached four digits, yet you're daily thinking "double it once"? When you open the trading interface, your hands start trembling, afraid of missing out on a certain coin and earning tens of thousands less. The more anxious you get, the worse your losses become, and thousands of dollars slowly evaporate, leaving only a tiny fraction.

Stop for a moment. I've been watching the market for over 8 years, and I've been through at least 80 out of 100 pitfalls. I want to tell everyone a truth: having a small principal is never a sin; reckless operations with a gambler's mentality are what can ruin you. Crypto trading isn't about luck or chance; it's about compound interest and rules. The smaller your capital, the more you need to learn to spend every cent on the most critical areas. Rushing to turn the tide is equivalent to burning your money.

I once had a young guy in my community. When he first consulted me, his account only had 800U. After three months in the market, he had already lost half. He was so obsessed with the K-line every day that he couldn't sleep, fearing his account would suddenly shrink significantly. I told him at the time: "What you lack isn't luck, but discipline to protect your money. Follow my three ironclad rules, and you'll see obvious changes within half a year."

And what happened? A month later, he posted a screenshot in the group showing his account had surged to 6200U. By the third month, his account had broken through 31,000U. Throughout the process, he never experienced a major loss; even with market fluctuations, his account remained steady as a rock. Someone said this was because of incredible luck? What a joke. I watched every one of his trades, and not once was it an emotional decision. It was all based on this set of "life-saving and wealth-building" strict rules. Today, I want to share this method with all friends with small principal—remember it forever.

**1. Divide funds into three positions: Attack position, Stable position, Life-saving position—maintain the confidence to recover**

Money management is the foundation of trading, especially for those with less capital. My approach is simple and straightforward—divide your funds into three parts. The attack position accounts for 20% of the total, used to chase high-risk, high-reward opportunities; this part can be aggressive. The stable position accounts for 50%, focusing on proven mainstream coins and mature strategies. The life-saving position accounts for 30%, which is fixed and only used in extreme situations.

What are the benefits of this allocation? First, you will never lose everything due to a single mistake. Second, your mindset will naturally stabilize—since you have a life-saving reserve, you won't go into a frenzy and go all-in. Most importantly, this structure allows you to gradually increase your earnings through stable compound interest, even with a small principal.