Having spent 6 years investing in crypto assets, I’ve seen too many newcomers rush in with just a few thousand USDT, only to see their principal shrink by 50% after a series of trades. This market is definitely not a casino. For small funds to grow, luck is not the key; discipline and rhythm are.

Last year, I mentored a student who started with only 600 USDT and grew it to 20,000 USDT in three months, all without a single liquidation. When asked what my biggest secret was, I said it’s sticking to those three seemingly "stupid" rules. But these three rules, 90% of people can’t follow. Today, I’ll break down the underlying logic of this method; the core is actually very simple.

**First: Position Management — Capital is Life, Don’t Go All-In**

The reason small funds die quickly is because of uncontrolled positions. The ironclad rule I always follow is to divide the principal into "three legs," each with a clear role and independent of each other:

1. Short-term position (one-third): Treat this as practice capital

Only trade BTC and ETH, avoid projects with whitepapers you can’t understand. Limit each trade to within 10% of your position size. Take profit immediately at 3%-5%, don’t greed for the last bit. This position is for practicing feel and building trading confidence; losses here won’t cause serious damage.

2. Swing position (one-third): For catching trends and earning compound interest

Be patient and wait for clear signals. For example, Bitcoin breaking previous highs with volume at a high level, or Ethereum retracing to the 30-day moving average without breaking it. Only then do you enter. After entering, take half of the profit at 10%, and move your stop-loss to lock in gains, letting the rest run. This position is for capturing the main upward wave and using the power of compounding to grow the snowball.

3. Life-saving position (one-third): This money must not be touched

This is your "lifeline." Even if you see an "excellent" opportunity, don’t touch it. Its purpose is to give yourself a chance to turn things around in extreme market conditions, and to keep your mindset stable.

**Second: Coin Selection Logic — Don’t Blindly Chase Hot Topics**

Many people lose money because of poor coin choices. For short-term positions, I only look at Bitcoin and Ethereum, because they have the highest liquidity and data transparency, making technical analysis easier. For swing positions, you can consider some of the top 20 coins by market cap, but they must have solid fundamentals—avoid newly launched projects.

The core standards for choosing coins are twofold: good liquidity and transparent data. Only then can you ensure there are enough counterparties when you want to exit.

**Third: Mindset Management — Sticking to the Plan Is More Important Than Predictions**

This is the most overlooked but most crucial point. Small funds survive in the crypto market not by finding 100x coins, but by avoiding fatal mistakes. For example, no all-in bets, no bottom-fishing, no chasing rallies, no holding through dips.

The student I mentored with 600 USDT managed to grow to 20,000 USDT mainly because he avoided liquidation for three months, always exiting according to the rules. It may seem slow, but the power of compounding becomes especially evident in the mid-term.

In practice, you’ll find that the hardest part isn’t finding good coins, but actually sticking to the plan—taking profits at 10%, and not touching projects you don’t understand. 99% of people fail at this execution.

For small funds to survive and grow steadily in this market, it all comes down to managing three things: position size, coin selection, and mindset. There are no shortcuts—just these three "stupid rules," consistently stacking gains with compounding.