I know quite a few newcomers in the crypto space, with only around 3,000 bucks on hand. As soon as they enter the market, they’re thinking about whether they can multiply their investment a hundredfold in one shot. But in reality, most of them disappear within three months. Today, I want to talk about a realistic topic: crypto trading is not a casino game, but a true arena where strategy and self-discipline matter. I started exploring with 5,000 USD myself, and later mentored a friend with a capital of 2,800 USD. Within three months, his account grew to 25,000 USD, and he never experienced a margin call during that period. The following ideas are probably more useful than reading ten technical analysis charts.

**Position sizing is essentially a way to survive longer, not being timid**

A common misconception is—if your capital is small, you should go all-in to fight. My experience is completely the opposite. The smaller the funds, the more you should diversify your bullets. How exactly to do this?

Use 500 USD for intraday short-term trading: follow only one position, enter when BTC breaks through a key resistance level, and take profit at 3%-5%, then immediately exit—never be greedy. Use 500 USD for swing trading: wait until the big trend is clearly established, such as a significant breakout signal on ETH daily charts, and set a profit target of over 20% before entering. Never open positions with the remaining funds: this is your emergency fund pool, used for adding to positions or catching those sudden dips and rebounds.

The beauty of position sizing isn’t about making a lot in one go, but about preventing you from losing all your capital at once. I’ve seen too many people hold full positions and endure the market, only to get margin called after a small rebound. Remember this: as long as you’re still alive, there’s always a chance to turn things around.

**Only eat the tasty parts, don’t chew on hard bones**

About 80% of the time, the crypto market is in consolidation. During this period, messing around is just giving trading fees to the exchange. The advantage of small capital is that it’s easier to turn around, but many people waste this advantage by overtrading. The correct approach is to wait until the trend is truly established before taking action. In choppy markets, frequent trading only increases costs and reduces win rate, ultimately leading to heavy losses. Instead of doing that, it’s better to patiently wait for the right opportunity.