Over the years in the crypto world, the most common scenario is that newcomers invest 500 dollars and two weeks later are completely wiped out. But I’ve also seen a few cases where, with the same principal, they managed to multiply it 40 times within 6 months.

Having been in this industry for 8 years, I’ve come to one very practical conclusion: for small fund players, surviving is more important than catching every opportunity.

Last year, I mentored a student who went from 500U to 20,000U. He has little talent and is very inexperienced with technical indicators. But this guy strictly followed a set of rules — I call it the "Small Fund Survival Method." After validation with over 30 students, this approach is especially useful for those starting with 500-1000U. Today, I’ll openly share it.

**First Tip: Funds must be layered, with safety cushion and aggressive positions strictly separated**

The fastest way for small funds to die is: all in betting on wins or losses.

My students must allocate their funds in a 3:6:1 ratio, and absolutely no reckless moves:

**150U for short-term flexible positions** — Focus on mainstream coins with strong market presence. Stay away from obscure coins with a long string of zeros after the decimal point. When profits reach 30%, forcibly sell half to lock in gains, and set a stop-loss on the remaining position. Don’t wait until profits run out before thinking about stopping. Greedy traders always die at this step.

**300U for mid-term holdings** — Only enter when clear daily signals appear. What’s a clear signal? When key support levels hold steady or long-term moving averages are broken. Enter only at these points. Hold this position for 3-15 days; avoid quick in-and-out trades for small gains.

**50U for absolute safety** — This is the life-saving fund. No matter how tempting the "inside information" or so-called opportunities seem, do not touch this money. Its purpose is to keep you alive in the most desperate times.

**Second Tip: Stop-loss levels must be set in advance; emotional trading is a death trap**

Many people’s problem is that they try to make up for losses when they’re losing money, but end up losing even more.

I tell my students simply: when entering a trade, write down your stop-loss point. Place it 8-10% below the entry price — that’s your stop-loss level. When it hits, you must exit. Don’t think "maybe it will rebound if I wait," because this mentality is a deadly poison for small funds.

I’ve seen too many people, initially losing 10U, stubbornly hold on until they lose their entire position. Why? Because they didn’t set a stop-loss at entry. When losses mount, they think, "I’ve already lost so much, might as well gamble again." And then, it’s all over.

**Third Tip: Control trading frequency; overtrading is a common flaw for small funds**

This is the most overlooked point. Many believe that more trades mean more chances to make money. In reality, frequent trading results in: transaction fees eating into profits, and a more anxious mindset.

My advice is: for short-term positions, no more than 3-4 trades per week; for mid-term positions, even less — maybe once every two weeks. Most of the time should be spent observing, not trading.

Over these 8 years, I’ve seen too many people fail due to anxiety. When the market rises, they’re afraid of missing out, so they chase high; when it falls, they’re afraid of losses, so they panic and cut. The result? Repeatedly getting harvested.

Those who truly make money are often the most boring ones — they have a clear plan, execute it, then stay silent and wait. They don’t change strategies based on short-term fluctuations, nor do they add positions out of FOMO.

From 500U to consistent profits, it’s not really a technical issue but an execution problem. Layering funds, setting stop-losses, controlling frequency — if you truly master these three, surviving already means you’ve won more than half the battle. Because in the crypto market, simply staying alive is the most scarce and valuable skill.