When a beginner asks how to allocate a few thousand yuan of starting capital, my answer has never changed.

There are basically two approaches: one is to find assets with solid fundamentals and technical indicators, and fully commit to them to aim for the first profit; the other is to split the money into several parts and simultaneously focus on two or three promising projects, which can effectively diversify risk. No matter which path you choose, the core operational principle remains the same—once the price rises to a certain level, immediately withdraw the principal, and let the remaining profits run. This is "zero-cost holding," and it’s also the safest way for small amounts to quickly progress.

But what about reality? Spot trading is too slow, easy to get trapped, and most people simply can't stick to this logic—no matter how good the plan is, if you can't execute it, it’s useless.

Where is the biggest pain point for small funds?

Ultimately, it’s insufficient win rate. If you pursue an extremely high profit-loss ratio, your win rate will inevitably drop, and repeated drawdowns can easily break your psychological defenses. Conversely, small funds don’t really need to get rich overnight; they need low drawdowns combined with stable compound growth.

Many people are trapped by a misconception—thinking that short-term trading can double their money quickly. In fact, whether you trade long or short isn’t the key; the ability to achieve consistent and stable profits is the critical line. Those who go all-in and gamble big every time, not to mention their mental resilience, their win rate and risk control skills far surpass ordinary traders. Imitating them easily leads to liquidation.

This may be a bit harsh, but I have to say—don’t keep dreaming about "waiting until I save up a million to start making money." If you can’t even handle a few thousand yuan well, then even if your capital multiplies tenfold, you’ll end up losing it all in the end. There are no shortcuts to turning small funds into large ones; the only way is steady, careful, precise execution, minimizing mistakes, and letting profits compound over time.

Remember one thing: slow is fast. In the crypto market, long-term persistence and stability are always more valuable than speed. Going solo is difficult to succeed, and trading is no different. Without access to high-quality information channels and like-minded partners, the process becomes much harder.