From 4,800U to 800,000U – The Art of "Counter-Intuitive" Capital Management in Crypto

Hey guys, I’m Nam. Today, I’m not going to talk about candlestick patterns or news predictions, but straight to the most common reason why most traders get wiped out early: capital management. You may be very good at analysis, read charts very accurately, but just one mistake in capital management – and the market will teach you a lesson with your account. The reality shows: winning or losing doesn’t depend on how many times you predict correctly, but on how you use the money in your hands.

1. Divide Capital – The First Step to Survive I once met a trader who started with 4,800U and after a few cycles, his account grew to over 800,000U. His secret isn’t some miracle, just two words: dividing capital. Core Principles Divide total capital into 7 equal parts Use only 1 part per trade Maximum loss per trade is 2% of that part Example: Account 4,800U → divide into 7 parts ≈ 685U per part Each trade risks about 13–15U Even if you lose 5 consecutive trades, total loss is only about 10%. The account still has a chance to recover. Why do most accounts blow up? Because: All-in Piling all capital into one trade Holding losses without cutting Believing “this time I will definitely be right” The market doesn’t need you to be right often. Just one wrong move with too large a position – and the game is over. Core viewpoint: Capital isn’t a tool to make money. Capital is a ticket to stay in the game.
2. Use Profits to Trade – Protect Your Principal The second trick of that trader is even “counterintuitive”: 👉 Never use your principal to increase risk. Only use profits. Operational method Use 1 part of capital for the first trade If you win, profit 300–500U Use only that profit for the next trade Keep the principal intact If the next trade loses: Lose the profit Principal remains unaffected Psychology changes completely From: Fear of losing Pressure to recover Holding losses To: Relaxed Trading with market money that rewards you Steady as a machine Golden rule: Market money is for continuing to trade. Your money – must be protected.
3. Don’t Predict the Direction – Trade with the Rhythm Professional traders don’t bet on “price will go up or down.” They bet on volatility and market rhythm. Core strategy 70% of the time, the market is sideways Only 30% has a clear trend Therefore: Sideways → accumulation Breakout → let profits run Smart entry method Divide orders into smaller parts Add 1 part on each 10–15% dip Total position not exceeding 30% of capital When there’s a trend → use profits to follow the trend Stoploss based on volatility (ATR), ensuring: Each trade risks no more than 1–2% of the account
4. Real Case: Catching the Whole BTC Wave from 80K → 110K Phase 1 – Accumulation BTC moves sideways around 80,000U Enter 3 trades: Each trade 10% of capital Average price 80,000–81,000U Total position: 30% Phase 2 – Hold Position BTC surpasses 85,000U: No FOMO No increasing capital Use trailing stop to protect profits Phase 3 – Take Profit Take 50% at 110,000U Exit the rest when price retraces to 105,000U Results: Use no more than 30% of capital Account grows over 17 times No psychological pressure
5. Three Survival Principles in Crypto
6. Capital division is the survival rule Each trade risks a maximum of 1–2% of the account.
7. Profits are shields Use profits to continue trading – don’t risk your principal.
8. Rhythm is more important than trend Sideways for accumulation – trend for explosion. Conclusion Crypto is not a casino. But many people turn it into one. The longest surviving: Are not those who predict peaks and bottoms best But those who manage their capital most disciplined The market is a marathon, not a 100-meter dash. As long as you have capital – you still have a chance. If you want to go long-term, start by learning how to preserve your money before thinking about making money.