A friend asked me some time ago if they could turn 5,000 yuan into 2 million in the crypto space. I just laughed—this industry isn't short of dreamers, but what it needs are those who treat dreams as goals and step by step turn them into reality.

I've seen many cases—some who turned 5,000 USD into millions, but I've also seen others go to zero overnight. If you ask what the difference is, my answer is straightforward: reliable traders have a mindset as calm as a machine, execution as solid as an iceberg, and a mentality as numb as a corpse.

Today, I want to share some practical advice. No hype, just how to survive and make money.

**How to Allocate Funds to Avoid Crashing**

The most common mistake among newcomers is all-in betting. Putting all 5,000 USD into contracts? That's asking for trouble. My long-standing approach is the "4321 Strategy," which is more resilient than any 50-50 gamble:

40% for long-term holdings. Focus on solid assets like Bitcoin and Ethereum. If the price drops by 10%, add to your position immediately. For example, if you plan to invest 4,000 yuan in Bitcoin and it drops from 50,000 to 45,000 (a 10% drop), then buy an additional 1,000 yuan. The more it drops, the lower your average cost becomes.

30% for medium-term positioning. Find projects with real application scenarios, such as DeFi or AI-related projects. The strategy is simple—buy more when prices fall, hold tight when they rise, and don’t try to catch the bottom or top every time.

20% for swing trading. Use 4-hour charts to identify patterns, focusing on assets that have been sideways for over half a month and suddenly surge in volume. Once a breakout is confirmed, aim for a 3%-5% profit and then exit. This part mainly helps stabilize your income.

10% as entertainment funds. Use 500 yuan to gamble, watching 15-minute charts, with take-profit and stop-loss set at 5%. Even if you lose everything, it’s no big deal—just like losing a small amount playing mahjong.

The beauty of this method is: when the market rises, the 40% long-term position can give you doubled returns; during market fluctuations, the 20% swing trading provides steady income; and if a major crash happens, the remaining 40% ammunition is still there for bottom-fishing.

**Tips for Short-term Trading**

Short-term trading isn’t guessing blindly; it’s about finding the market’s "breathing rhythm."

For example, during significant volatility, many panic and trade randomly, but there’s actually a pattern. You need to observe within the same time frame which coins have the largest swings and the most rhythmic movement. Once you recognize this rhythm, you can position yourself at turning points.

The most important point: set a strict stop-loss. Many people refuse to accept losses, which leads to bigger losses. My rule is simple—close your position automatically if it drops 5%, no bargaining. Although this might sometimes cut losses before a rebound, in the long run, it helps you avoid big pitfalls.

**Emotions and Discipline**

I’ve seen many experts, and their common trait isn’t necessarily technical brilliance, but the ability to completely shut off emotions. When the market surges, they don’t chase highs; when it crashes, they don’t panic—like an automated system.

Once you have a plan, stick to it. Don’t change your tactics just because a KOL said something, and don’t rush to chase after others’ profits. The biggest way to lose money in this industry isn’t lack of skill, but poor self-management.

In summary: if you want to turn 5,000 USD into a bigger number, it’s not about luck. It’s about a calm mind, strict execution, and repeatedly honing this system.