The square often sees posts like this: After years of struggling in the crypto world, relying on a "clumsy method" to buy a house in a first-tier city? Using this approach to turn a small principal into eight figures?



Below, a bunch of people ask: Is there really such a foolproof routine in the crypto circle?

My view is straightforward: There is no guaranteed secret in the crypto world. But taking individual success stories as universal formulas and packaging results into replicable paths is, in itself, the biggest trap in the crypto space.

So how should small funds be managed? I think it should be approached from three angles.

**First shift: Change your mindset from "breaking even" to "learning a lesson"**

If your principal is no more than 1000U, don’t chase the dream of doubling it. Be realistic and treat this money as tuition for entering the market.

The real goal should be: to personally experience pitfalls like liquidation, slippage, and emotional loss. If you can preserve 50% of your principal in the end, you’ve already won.

How to do it? Use a tiny position size of 1%-2%, and go through a full bull-bear cycle. Record logs daily, screenshot K-line charts, and write down your emotional reactions. These practical experiences are a hundred times more valuable than any "secret."

**Second point: Make good use of your principal, start with a flexible deposit**

Put 80% of your principal into a top exchange’s financial product or on-chain stablecoin savings account, with an annualized yield of about 4%-5%. Force yourself to only use these earnings for trading.

What’s the benefit of this? Even if your trading skills are poor, your principal will generate positive returns each year. At least you won’t get poorer year after year.

**Third threshold: Don’t use real money unless your win rate exceeds 55%**

Backtest at least 100 trades, and record profit/loss points, slippage costs, and emotional states at the time.

Only when your win rate remains stable above 55% for two consecuti
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 6
  • Repost
  • Share
Comment
0/400
MidnightSnapHuntervip
· 5h ago
Reliable advice, but no matter how right it is, some people just insist on going all in with an eight-figure dream.
View OriginalReply0
notSatoshi1971vip
· 5h ago
It's the same old story, I'm tired of hearing it... But this guy is actually speaking the truth, there's no guaranteed winning strategy in the crypto world. I agree with treating small money as tuition fees; otherwise, it's just a gambler's mentality. A 55% win rate is quite realistic; backtested results are often nonsense.
View OriginalReply0
TokenEconomistvip
· 5h ago
actually, let me break this down—the 80/20 allocation model here is basically applying portfolio theory, ceteris paribus, assuming stablecoin yields remain constant. but here's the thing: treating your small capital as tuition? that's just... economically rational, not some revelation. it's literally the kelly criterion in disguise, just dressed up in crypto language.
Reply0
LayerZeroHerovip
· 5h ago
This guy makes a good point. Success principles in the crypto world are the biggest scam; I've seen through it a long time ago. Honestly playing with small positions and keeping logs really works, but most people simply can't stick to it. As for the 55% win rate standard, I think it's a bit idealistic; how can real trading be that stable?
View OriginalReply0
ValidatorVikingvip
· 5h ago
the "buy the lesson not the moon" angle hits different... most of these small stack operators never even backtest 100 trades before blowing up. 55% win rate threshold is battle-tested wisdom, not gatekeeping. seen too many protocols fork over bad risk management, same chaos plays out at individual level tbh
Reply0
ClassicDumpstervip
· 5h ago
It's the same old story. I've heard it a thousand times, but people still fall into the trap.
View OriginalReply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • بالعربية
  • Português (Brasil)
  • 简体中文
  • English
  • Español
  • Français (Afrique)
  • Bahasa Indonesia
  • 日本語
  • Português (Portugal)
  • Русский
  • 繁體中文
  • Українська
  • Tiếng Việt