I've seen too many people crash and burn in the crypto world, and without exception, they all died on the same issue: only thinking about making quick money.

Recently, a friend of mine was complaining. He's the kind of trader who chases new coins at the slightest movement. When prices go up, he FOMO buys in; when they fall, he stubbornly holds on. As a result, his account shrank to just over $3,000, and he couldn't sleep peacefully every night.

My advice to him wasn't complicated—just one sentence: in this market, making fewer mistakes is more valuable than making more money.

He adjusted his approach based on this idea for three months, and his account gradually recovered. Later, he even sighed and said, "It turns out that controlling risk and growing steadily is actually faster."

**The key is to clearly divide your funds and let each part do its own job. He split his capital into three parts:**

**First — Short-term trial and error fund.** The rules are strict: operate at most twice a day; if you make a mistake once, stop trading for the day immediately, close the software, and don't entangle yourself. This way, you retain short-term flexibility while preventing emotional trading through forced stop-losses.

**Second — Allocation for Bitcoin and Ethereum.** Entry conditions are extremely strict: the weekly chart must show a clear upward trend, and the price must genuinely break previous highs and settle firmly before attempting a small position. This is true long-term logic—no FOMO, just waiting for confirmed signals.

**Third — Emergency reserve.** For any trade that hits a stop-loss and exits, he uses that money to reassess in the calmest state. This ensures he won't be completely washed out by a single shakeout and always has a chance to come back.

Some might ask: why split so thin? Why not go all-in when the signal is clear? Isn't that more efficient?

Quite the opposite. Over the years, many so-called "efficiency enthusiasts" have quietly exited the scene. Putting all your chips on what seems like a perfect opportunity often results in being wiped out by a sudden reversal. This three-layer allocation method may not offer the highest returns, but it guarantees you'll survive until the next bull market arrives.