Many people enter the crypto space with the idea of getting rich overnight, but within a few months, they lose everything. I've seen it too many times—holding just a thousand or so dollars, jumping into the market and going all-in, hoping a single trend will change their life. And what happens? The market eats their money before they even react.

Last year, a newcomer and I traded together, starting with $800, and in five months, it grew to nearly $30,000. The key point is that we never had a margin call during the entire process. This is not luck, but because we followed a few strict rules from the very beginning.

**Rule 1: Divide your funds into three parts, never go all-in**

How to allocate that $800? Divide it into three equal parts, each with its own purpose.

The first part, $300, is dedicated to intraday short-term trading. I only focus on BTC and ETH; I don't even look at other coins. The goal is clear—capture small fluctuations of 3 to 5 points and exit. For example, if BTC enters at 120,000 and rises to 124,000, I exit immediately, earning just over 3 points, and don’t be greedy. Opportunities like this happen every week. As long as you execute consistently, the success rate is high.

The second part, $300, is for swing trading. This requires patience. Don’t act without clear signals—what are signals? Major events like Federal Reserve rate decisions or spot ETF approvals. Wait for these catalysts before taking action, entering the market for three to five days, then exiting. Last November, during the ETF wave, this $300 was invested for five days and safely earned $80—this is the result of this approach.

The third part, $200, is reserved as a risk buffer. When the market is bad or judgment is off, it provides a cushion so you’re not wiped out by sudden changes.

The beauty of this allocation method is that even with small capital, you can generate compound effects while keeping drawdowns within manageable limits. Many people fail because they don’t grasp this balance.