Many people think that small capital has no chance in the crypto world, but if you master the right methods, 5,000 yuan can completely become a springboard for a turnaround.

My experience is like this—when I entered the market in 2019, I only had 5,000 yuan, and within less than half a year, I achieved a 50-fold growth. The process wasn’t magical; it was simply following a strict risk management framework.

**Core Advantages of Small Capital**

The greatest value of 5,000 yuan isn’t in the amount itself but in the opportunity to try and fail. I divide it into 7 parts, each 500 yuan. The maximum loss per trade is set at 2% of the total capital, so even six consecutive losses won’t wipe out the account. In other words, risk is fully quantified and controllable.

**How to Find Worthwhile Opportunities to Act**

Cryptocurrency markets are 90% consolidation, and truly trending moments are quite rare. My screening criteria are just three—

First is technical certainty: for example, after a coin has been sideways for a long time, a sudden large bullish candle accompanied by a surge in volume (volume reaching 3 times the previous day) indicates a clear directional signal.

Second is fundamental drivers: major events like the Federal Reserve’s policy shift or Bitcoin halving cycles often bring predictable directional shocks to the market.

Third is sentiment reversal: shifting from extreme pessimism to gradual recovery, which often breeds stage opportunities during this process.

**The Key to Execution**

Finding opportunities is just the first step; the key is how to use them. Use profits to take risks, always protect the principal—that’s my bottom line. Profits from each successful trade become the capital for the next round, while the original principal remains untouched. The benefit of this approach is that even if later strategies fail, you still have repeated chances to come back.