Having been in the crypto space for so long, I see every day someone sharing their story of financial freedom using "simple methods." But honestly, what I care more about is another phenomenon—many people treat others' success as a universal formula, only to realize when they hit a snag that no two paths are exactly the same.

This is especially true for small capital players, who are more prone to falling into this trap. So I want to talk from the opposite angle: if your principal isn't much, how should you play so as not to waste time and money?

**First Shift: Replace the idea of breaking even with gaining experience**

When your capital is small, don’t see it as a chance to turn things around. That mindset will collapse. Instead, look at it differently—consider this money as tuition fees, and use a very small position size (like 1% to 2%) to fully experience a market cycle.

There are many pitfalls you need to step into: what does a liquidation feel like, how to react when the price spikes, emotional breakdowns when seeing losses... You need to experience these firsthand to count. In the end, if you can leave with some of your principal intact, you've already won.

The key is to record every trade—not just profit and loss, but also your mindset at the time, market conditions, and your decision-making logic. The value of these things far exceeds the few hundred dollars you might make in the short term.

**Second Shift: Let your principal grow on its own**

Most of your funds should be placed in relatively safe areas—exchange savings accounts, stablecoin investment products, etc. Then only take out interest or a small portion of the principal to operate.

What’s the benefit of doing this? Even if your current strategy isn’t mature enough, your principal is slowly growing. Your mindset naturally stabilizes, and you won’t be scared away by short-term fluctuations. This is essentially giving yourself room for trial and error.

**Third Shift: Use data to validate, then invest real money**

Your trading method must be backtested. Carefully backtest, record every profit and loss, slippage costs, and also your psychological state at the time—because real trading amplifies everything.

Only when your win rate exceeds 55% for two consecutive months, and the maximum drawdown is within a controllable range, should you consider increasing your capital. Many seemingly good strategies have a win rate below 40% in backtests. Spotting this early actually saves you money.

At the end of the day, the two most important things in the small capital stage are—survive and learn. Compared to stories of doubling your money, these two goals are more realistic and meaningful. Opportunities in this market are plentiful; what’s truly lacking are those who are well-prepared. Instead of rushing to make money, it’s better to first refine yourself.