After so many years of trading, the most common question I get is—"Can I play in the crypto space with only a few thousand dollars?" My answer is: Of course, but the premise is that you use the right approach.

Last year, a buddy of mine approached me with a capital of 1200 USD, asking if he could turn things around. I didn't give him any secret code, just told him three principles. As a result, his account reached 50,000 USD in 90 days, all without a single liquidation. Today, I’ll break down these experiences; whether you can apply them depends on your understanding.

**First Rule: Money must be divided to survive longer**

No matter how little capital you have, it should be split into three parts. I call this the "Three-Pool Strategy"—each pool does one thing, and never mix them together.

Pool 1 (Short-term): 1000 USD dedicated to intraday trading. At most two trades per day. Whether you make money or lose money, close the software immediately—don't let yourself get addicted.

Pool 2 (Trend-following): 1000 USD only for major trends. For example, if Bitcoin stays above the 200-day moving average, then consider trading. Otherwise, stay out of the market; a few days of waiting won't kill you.

Pool 3 (Insurance fund): The last 1000 USD remains untouched. Even if the first two pools blow up, it’s okay. It allows you to stay in the game.

Why make it so complicated? The data is clear—how do 83% of novice traders in futures get wiped out? By going all-in with a single trade. The market is too volatile; a small slip can wipe out your account. The core logic of dividing funds is to use strict discipline to increase your chances of survival.

**Second Rule: Eat the fish, not the tail**

Range-bound markets are the easiest way to lose your money. Many people trade in and out frequently, and end up paying most of their profits in fees. My approach is simple and straightforward:

If there’s no clear bullish signal (for example, the 50-day moving average is still below the 200-day moving average), do nothing. Better to stay out than to trade blindly. Wait for a confirmed pattern before taking action. Let the market fluctuate as it may.

The benefit of this approach is fewer trades, a stable mindset, and avoiding unnecessary losses caused by frequent operations.