Many people ask me, how can I survive in the crypto market with only a few hundred dollars? Over the past two years, I’ve mentored several beginners, starting with around 800U, and in two months, they reached 18,000U. Now their accounts are stable around 40,000U. This is not a get-rich-quick story; frankly, it’s all about strict discipline and execution.

There’s a phenomenon in the crypto world: 90% of people lose their principal within the first three months. The reason is usually not poor technical skills but a mental breakdown. Today, I’ll break down my practical framework to share with those with limited capital who want steady growth.

**Three-tier Capital Allocation: The Survival Rule for Small Funds**

Using 800U as an example, going all-in on a single trade is basically a quick death. My approach is to divide the money into three parts, each with its own role.

The first layer is 300U for intraday short-term trades. The goal is to earn 3%-5% each time and then exit immediately. This part emphasizes quick in and out—take profits when targets are hit, and cut losses at 1.5% to prevent short-term trades from turning into long-term traps.

The second layer is also 300U, used for 3-5 day swing trades. The core idea of swing trading is “follow the main trend, counter small fluctuations”—enter when mainstream coins pull back at support levels, and reduce positions in batches when volume surges. The purpose here is to profit from small trends.

The remaining 400U is the core position, which is kept untouched. Think of it as your safety deposit box—if the first two layers all blow up, you still have principal to recover. Many start with full positions and, after a mistake, are forced to exit the market permanently. The core position’s purpose is to ensure you always have a chance to come back.

These three layers of funds serve their respective roles, maintaining trading activity while effectively locking in risk. Remember: for small funds to grow big, first, you must stay alive.

**Focus on Core Trends, Avoid Frivolous Opportunities**

90% of the crypto market time is actually garbage—no direction, no hot topics, no volume. During these times, patience is the greatest test.