# Small Capital Cryptocurrency Trading Survival Guide: 7 "Foolproof" Rules to Minimize Losses

Let's be honest—crypto markets do present more opportunities than stocks, but they also come with a higher risk of blowing your account. How to play with less than 100,000 yuan without getting wiped out? My approach is straightforward—no fancy tricks, just simple methods that really work.

Many people lose money not because of a lack of strategy, but because of poor execution. The same signal can make someone profit or lose, depending on their discipline in the details. Let's discuss these seven ironclad rules:

## Rule 1: Don't Be Greedy with Coins; Specialize to Win

Having too many choices is a burden. With small funds, don’t try to grab everything at once. Focus on 2 to 3 active coins. Why? Because your reaction speed is limited. When the market moves, you need to judge instantly. Switching coins frequently only confuses your thinking, and in the end, you won’t make any profit—just get yourself confused.

## Rule 2: Hold During Uptrends, Cut Losses During Downtrends

This is a psychological game. During rapid surges, it's easy to get carried away. Seeing the candlestick skyrocket, you want to go all-in, but a reversal can cut your gains in half. During sharp drops, you’re tempted to sell out of fear, worried it will fall further. What’s the trait of someone who makes money? They always keep their emotions a step behind the market. Understand the structure first, then consider your actions. Don’t let market fluctuations lead you by the nose.

## Rule 3: Light Positions Are Your Shield

Don’t tell me, "Going all-in is real man’s style." With 100,000 yuan, keep at least 30% in cash idle. What’s the benefit of a light position? A stable mindset. When opportunities arise, you still have bullets to add at low prices; if your judgment is wrong, your losses are limited. Heavy positions only make you panic in a downturn, often leading to the worst decisions.

## Rule 4: Take Profits at the Right Time, Don’t Be Greedy for the Last Penny

Take profits when you hit your target, and admit losses immediately if wrong. Sounds simple, right? But it’s the hardest to do. Human nature is greedy—we always want "just a little more." The result? All the profits you worked hard for are wiped out, sometimes even your principal. One greed can ruin a whole month’s gains. Set clear take-profit and stop-loss levels—like setting an alarm clock. When it rings, get up; don’t sleep in.

## Rule 5: Enter and Exit in Batches to Reduce Risk

Whether buying or selling, don’t do it all at once. Spread your entries and exits over three or four times. Why? To reduce the chance of making a wrong move. Even if your judgment is off, you have room to correct. Someone who goes all-in only needs one mistake to lose everything. Those who operate in batches can recover even if the first two trades lose.

## Rule 6: Use Basic Technical Analysis, No Need to Overcomplicate

Don’t get dazzled by complex indicators. MACD, Bollinger Bands, stochastic… Why bother learning these? It’s a waste of time. You only need to understand three things: trend direction, support and resistance levels, and volume. These are enough to filter out most traps. For small funds, overcomplicating only leads to more losses. Many people become more complex in their analysis and end up losing more.

## Rule 7: Don’t Listen to Tips, Trust Your System

There’s always someone whispering in your ear—"Listen to me, this coin is about to explode," or "Quick, buy the dip, a thousand-bagger." No matter how many opinions you hear, it’s better to develop your own fixed trading rules. Following others’ tips only makes your emotions uncontrollable, and in the end, you’re likely to lose everything.

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Surviving in crypto with small funds doesn’t require genius-level judgment. It’s about consistent, "foolproof" execution. No one makes big money by rushing recklessly; steady, step-by-step progress is key. If you’re still messing around now, just follow these seven rules.