In the crypto world, I have seen too many stories. Some people enter with just a few thousand dollars, filled with dreams of overnight riches, only to lose everything after a few months. Others steadily grow their holdings from 800U to over 30,000U, without ever getting liquidated once during the process.

What’s the difference? It’s not luck, but whether they have real rules.

I once mentored a newcomer who started with only 800U. I taught him to follow a strict strategy, and within two months, his account grew to 18,000U. Now he’s close to 30,000U. This guy has never been liquidated due to poor operations. So it’s not just luck — he truly executed principles properly.

Let me break down these hard-earned lessons, one by one.

**First: Money shouldn’t be all in one basket — split into three parts**

The most common mistake beginners make is full position trading. “In crypto, one day is like a year in stocks” — this is no joke. How volatile is this market? Have you experienced it? A 30% drop in an hour is normal. Full position trading is like telling the market, “Go ahead and cut me.”

Here’s how to split it:

*For day trading* — 300U is enough. Focus on major coins like BTC and ETH, which have good liquidity and small slippage. Aim for 3-5% gains daily and then exit. Don’t be greedy. The more you trade frequently, the more fees you pay to the exchange, and in the end, your net profit is less than what you paid in fees.

*For swing trading* — also 300U. This isn’t for daily operations but waiting for important news or clear technical signals. When a good opportunity appears, take action, then hold for 3-5 days. Quick in and out traders often end up losing quickly.

*Emergency fund* — 400U. The most critical purpose of this money is — when the market hits bottom, you have the confidence to add more; if a black swan event occurs suddenly, while others panic and sell, you can seize the opportunity. Keeping enough cash reserves allows you to act decisively when real opportunities come.

**Second: Keep day trading and swing trading separate, don’t mix**

Many people make the mistake of blending these two styles. You can’t expect to trade frequently for quick profits like day trading, and also hold coins waiting for big moves like swing trading. It messes with your mindset and execution.

Day trading emphasizes discipline and frequency; swing trading emphasizes patience and selection. These are two completely different game rules. Those who mix them often fail at both, ending up as pawns in the market.

**Third: Have a safety net to survive long-term**

In crypto, black swan events happen all the time. Exchange collapses, regulatory policies change suddenly, market liquidity dries up... You never know what will happen next.

Those who last long never put all their money in at once. They always keep some “emergency funds.” This reserve might seem useless in the account, but it can save your life. When most panic and sell during a crash, those with cash reserves can act contrarily. That’s why some people buy more as prices fall and end up making huge profits.

In short, the game rule in crypto is — survival is the most important. Making money? Yes, it’s important. But if you can’t stay alive, making money is just empty talk. With these three principles, you at least solve the survival problem, and then the rest can be discussed.