Having navigated the crypto market for years, I've seen too many people rush in with just a few thousand dollars, carrying the dream that "a day in the crypto world is like a year in the real world," only to end up leaving in disgrace. They all think that with little capital, they must take risks, but what’s the result? The fastest to die are usually these very people.

Today, I won't talk about complex technical analysis; instead, I'll share a few survival principles I've personally tested.

**Rule 1: Clearly Divide Your Funds**

What is the most common mistake among beginners? With limited capital, they go all-in on a single trade. That’s basically gambling, with no difference. The correct approach is the opposite—when your capital is tight, you need to plan meticulously.

My method is simple: divide your funds into three parts, each with its own purpose:

**Guerilla Position (about 30%)**: Used to get a feel for the market. Focus on short-term trades of mainstream coins, but be ruthless—take profits of just 2%-3% and then cash out in batches. Don’t be greedy. The real purpose of this portion is to keep your market sense sharp and to help you resist the impulse to play contracts out of boredom.

**Main Position (about 30%)**: This is the real money-maker. Wait for policy shifts or major technological upgrades—opportunities that can establish clear trends. Once you act, riding a wave could be more profitable than months of guerrilla trading.

**Ballast (about 40%)**: This is the bottom line, the absolute safety net. No matter how crazy the market gets or how tempting others’ gains are, this portion must never be touched. Its purpose is to protect you during extreme downturns, giving you the capital to bounce back and avoid being wiped out by the market.

This division isn’t some advanced theory; it’s just common sense.