Living is the only chance, and this is the simplest truth in the crypto world.

Last year, a childhood friend came to me with $500, trembling, thinking "Big move, a chance to turn things around." I held his hand and said: Don’t think about making money now, let’s first learn not to lose. Three months later, his account grew to $18,000. Zero additional margin throughout, and he never experienced a fatal crash.

It’s not magic; it’s just that the rules are enforced strictly enough.

**Why do small retail investors die so quickly**

There’s a cruel statistic in the crypto world—80% of people ultimately become puppets of their emotions. When the market takes off, FOMO drives them to buy at high levels; when a sharp decline hits, fear causes them to sell at the bottom.

I’ve seen too many beginners throw in a few hundred dollars, chasing whichever coin is rising, only to get caught at the top. Even worse, some have experienced rug pulls, and their principal evaporates.

$500 is not meant for doubling your money; it’s meant for paying tuition. The first lesson is simply—survive.

**Three-layer position method: leave yourself a backup**

"All-in" is the most common way for small funds to die. So the method I teach is simple: divide the money into three parts, each with its own purpose:

**First layer ($150)**: Pursue quick liquidity. Only trade the most active mainstream coins, and withdraw if volatility exceeds 2.5%. This money is for feeling the market rhythm; don’t have any other thoughts.

**Second layer ($200)**: Mid-term holding. Choose coins with relatively stable fundamentals, allowing for 10-15% pullbacks. This layer is for enduring oscillations.

**Third layer ($150)**: Long-term core holdings. Only build positions at specific times, then leave them alone. This money is to ensure you’re not fully on the sidelines when the market truly takes off.

The key is: never reallocate. If the first layer is wiped out, it’s gone; you can’t replenish from the second or third layers. The benefit of this approach is that, in the worst case, you only lose $150, and you still have $350 of active funds in your account.

Small funds fear most being wiped out by a single big correction. This strategy is like giving yourself insurance—so long as you’re alive, there’s always a chance to turn things around.