Many people enter the crypto market with the same dream: to achieve financial freedom directly through a few rounds of contract trading with just over $1,000 in capital. But in reality? Most of the time, they smile when they profit, and their mental state shatters when they lose.

The crypto world is never gentle with small-cap players. Either learn risk management and exit alive, or go all-in and wait to be wiped out. This is not alarmist talk; it’s a rule.

I once saw a friend who started with an initial capital of $1,200. At first, he was full of dreams of doubling altcoins and getting rich quick with contracts. Later, he made three decisions that directly changed his trajectory. In three months, his account grew from $1,200 to $25,000, without ever getting liquidated or losing control with crazy trades.

**Step 1: Position Sizing Strategy — Full Position Equals Suicide**
Divide the $1,200 into three parts. $400 for intraday trading, $400 for swing trading, and the remaining $400 as a safety reserve that never moves. The core logic of this ratio is simple: even if the first two parts go to zero, the account still has a chance.

**Step 2: Only chase certainty, stay out during sideways markets**
Traders have found that 80% of losses occur during sideways consolidation periods. When the trend is unclear, do nothing. Better to miss opportunities than get trapped. Market opportunities will come again, but the account is only one.

**Step 3: Strictly adhere to technical discipline, reject subjective guesses**
Clear criteria for selecting coins: enter when the daily MACD crosses above the zero line, only follow the trend, and avoid bottom fishing. Use the daily moving average as a benchmark during holding periods: hold steady when above, exit when below. Entries and exits must be supported by volume; a breakout on high volume is a signal, while a rise on low volume is often a trap. Take profits in two steps: sell part of the position after a 40% rise to lock in gains, then reduce further after an 80% increase. When the price breaks below the moving average, clear all positions without hesitation.

More importantly, execute stop-losses strictly: if the closing price falls below the moving average, exit unconditionally the next day. Many fail because they keep holding, hoping to turn things around, but the more they hold, the deeper they sink.

Now, this friend’s account has grown to over $50,000. What’s most impressive is his trading rhythm: no late nights glued to the screen, no emotional trades. Every day, he looks for opportunities, strikes quickly and accurately at the right levels, and exits smoothly—never greedy.

A straightforward tip for beginners: as long as your capital is still there, the story of doubling your money can continue. Protect your capital with position sizing, wait for the best opportunities, and strictly follow the rules—sounds dull, but this is how the longest-living players in the crypto market usually operate.