As an old hand in the crypto market for many years, I've seen too many people rush into the crypto world with a few thousand dollars, thinking they can turn it around overnight, only to become just another statistic in the liquidation table. Let’s be honest today: 7000 yuan (about 1000 USD) is not gambling money, but your 'ticket' to navigate through bull and bear markets—if used correctly, it can help you snowball; if used incorrectly, you won't even see a splash before it’s gone.
1. The core logic of small funds: survive first, then talk about profits.
Many people make a big mistake as soon as they enter the market: heavy positions, high leverage, chasing highs and selling lows. But the truth is, 90% of retail investors in the crypto space lose money not because of bad luck, but because of a lack of discipline.
Reject the 'gambler's mentality': Use 7000 yuan in 10 installments, with a maximum of 10% (i.e., 700 yuan) for each, equivalent to giving 10 chances to try and error. Even if you lose 5 times in a row, you still have the principal to turn things around.
Leverage is poison, not a cure: 3x leverage is already the limit for small funds. Those who open 30x or 50x are not trading, they are gambling - the dealers are just waiting to eat your margin.
II. My practical strategy: Build positions in batches + trend sniping
My own approach is very simple, with three core points: mainstream coins as the foundation, seizing opportunities in waves, and reinvesting profits.
Step one: Use 70% of funds to bet on 'ballast stones'
Invest 5000 yuan (about 700 US dollars) in Bitcoin (BTC) and Ethereum (ETH). Buy in batches during the early stages of a bull market or when the price pulls back to key moving averages (like the 60-day line) and hold long-term.
Logic: Mainstream coins have strong anti-drawdown characteristics; even if temporarily trapped, they can recover after cyclical rotation. Historical data shows that BTC has a peak every 3-4 years; holding is winning.
Step two: Use 30% of funds for swing trading, focusing on strong coins
The remaining 2000 yuan is divided into 3 parts (about 200 US dollars each), focusing only on 2-3 mid to small market cap coins with hotspots (like AI, Layer 2 track).
Entry signal: Coin price retracing to support + increased trading volume (for example, ZEC stabilizing after a pullback), open a 3x leverage, set stop loss 5% below support.
Profit-taking discipline: Reduce your position by half when profits reach 30%, and move the remaining part to trailing stop (for example, after a 50% increase, move the stop loss line to the cost price).
Step three: Let profits snowball, withdraw the principal
After swing profits reach 50%, withdraw the principal part and only use profits to continue operations. For example, if you make 200 US dollars and increase it to 300 US dollars, withdraw 200 US dollars, leaving 100 US dollars to roll over.
Key: Avoid profit retracement, while maintaining a more stable mindset - after all, you are playing with 'zero-cost chips'.
III. Blood and tears lessons: Avoid these pitfalls at all costs
Superstitious about 'hundred times coins': 99% of altcoins will ultimately go to zero. Don't be brainwashed by community hype; the hotspots you see may just be smoke bombs released by dealers.
Frequent trading: Transaction fees and slippage will eat away at small funds. Making 2-3 trades a month is sufficient, observe more and act less.
Emotional holding: Set a hard stop loss! If you lose 30%, you must cut your losses, don't fantasize about a rebound - the market won't change its trend just because you insist.
IV. Honest words for beginners
There are no myths in the crypto world, only cycles and human nature. Starting with 7000 yuan, the goal in 6 months is not to double, but to refine your trading system:
Review K lines daily and record the reasons for gains and losses;
Join quality communities to learn skills, but refuse to follow the herd;
After preserving the principal, consider amplifying returns.
Remember: slow is fast. When you can survive a round of bull and bear markets with 10 chances, you have already outperformed 90% of retail investors.
Follow Crypto Rao Ge to learn more first-hand information and precise points about cryptocurrency knowledge, becoming your navigator in the crypto world; learning is your greatest wealth!#BTC何时反弹？ #美国伊朗对峙 $ETH
