There is a heartbreaking saying in the crypto world: the smaller the account, the more you need to exercise restraint. First, protect your principal, and then slowly figure out how to make money.

A friend's experience last year left a deep impression on me. He had only $500 left in his account, and every time he placed an order, his hands would tremble, with thoughts of "how to double quickly" running through his mind. Seeing him like that at the time, I couldn't help but say bluntly, "If you keep going like this, instead of thinking about making money, you'd better learn how not to get liquidated first."

Three months later, I checked his account, and the balance had grown to $18,000. Throughout the process, there were zero liquidations and no margin top-ups. It might sound like luck, but in fact, three strict "life-saving rules" were at play behind the scenes. Today, I want to share these, especially for friends with accounts under $1,000—how to not only survive in this risky market but also thrive.

**First Tip: Divide your money into three parts and always leave yourself a backup**

I've seen too many beginners go all-in with just a few hundred dollars, only to be completely wiped out by a sudden market spike. When the account is small, the priority isn't how much you can earn, but how to survive longer.

Using my friend's $500 as an example, he allocated it like this:

**$150 short-term position** — specifically watching BTC and ETH, the two most stable trading pairs. Why these two? Because their volatility is relatively controllable, market liquidity is sufficient, and they are less likely to be precisely broken by big players. The rule is simple: if the price moves more than 3%, exit decisively, no matter how tempting the trend.

**$150 swing position** — not relying on luck, but patience. Only enter when there is a clear volume breakout or breakdown on the daily chart, with a holding period no longer than 5 days. What does this approach pursue? Trading opportunities where the profit potential is at least three times the stop-loss. In other words, if the risk-reward ratio isn't good enough, better to stay out.

**$200 safety reserve** — this is your last line of defense. Unless facing extreme market conditions, never touch it. Many people don't understand the significance of this $200, thinking it's a pity to leave it idle. But it's like insurance—so that even if you make wrong judgments or mistakes in operations, you still have the capital to bounce back.

Compare this to someone who goes all-in; one spike and their account is wiped out. But those with a backup can continue even after losses. This is the art of survival.

**Second Tip: Stop-loss isn't surrender, but the price of staying alive**

Many misunderstand stop-loss, thinking setting a stop-loss means admitting defeat. In fact, quite the opposite—stop-loss is what allows small fund traders to survive the longest.

Continuing with the example of that $500: after entering a short-term position, set a 3% stop-loss immediately. For swing positions, stop-loss is usually set at 5-6%. It may seem strict, but because of this strictness, he was able to survive three months to see his account grow to $18,000.

On the other hand, if every trade is held with a hope that "it might rebound if I wait a bit," the result is usually a big loss that wipes you out completely. Small accounts can't withstand that kind of tossing around.

**Third Tip: Stick to mainstream coins, avoid gambling on small altcoins**

This rule sounds conservative, but for small funds, it's definitely a key to survival. Mainstream coins like BTC and ETH, although their gains may not seem as explosive, have high liquidity, controlled volatility, and are less likely to be precisely broken by big players.

In contrast, small altcoins, while occasionally surging several times or even tenfold, carry risks that multiply accordingly. For a $500 account, a single unclear all-in move can be fatal. Instead of coveting those huge profit opportunities, it's better to steadily earn 30-50% from mainstream coins and survive longer.

**Final words**

Having a small account is not a disadvantage; it's actually an advantage—because protecting the principal is relatively easier. As long as you can earn a stable 20-30% per month, the power of compound interest will show. My friend grew from $500 to $18,000 using this methodology—no luck involved, just rules.

If you're at this stage now, remember one thing: only by staying alive can you have the chance to make money.