Many people ask about making money by trading cryptocurrencies, always looking for shortcuts. I'll be straightforward: leveraging contracts to amplify gains is possible, but it requires a methodical approach. Especially when you don't have much capital, the key is to scientifically allocate funds and progress in stages.

Suppose you currently have about 3,000 yuan to try, convert it first to around 400U. Don't rush to go all-in; let's divide it into two main stages:

**Stage One: Small Capital Snowball (Target from 300U to 1100U)**

The goal here is to quickly accumulate principal through small, frequent trades. Take out 100U each time, focusing only on the hottest coins in the market recently. There are two ironclad rules to follow:

- Double your money and immediately stop, don’t try to ride the wave further. For example, turn 100U into 200U, close the position right away—it's that simple. Many fail because of greed, always wanting to earn a little more, but the market reverses and they end up losing everything.

- Cut losses if they exceed 50%. Although it hurts, this is the most direct way to protect your principal. If luck is on your side, winning three times in a row can create a snowball effect (100→200→400→800). The win rate in this phase isn't the most important; staying alive is. Limit yourself to three rounds at most, and stop once you reach around 1100U, because luck plays a big role here.

**Stage Two: Portfolio Strategy When You Have More Money (1100U and above)**

Once your capital reaches a certain size, it’s time to change your approach. You can split your funds into three parts, each with a different rhythm. This reduces risk and allows you to seize various market opportunities.

- Quick entry and exit (allocate 100U): This portion is dedicated to short-term volatility trading, especially in highly liquid mainstream coins like Bitcoin and Ethereum. For example, if you notice Bitcoin suddenly starts rising in the afternoon, jump in; take profit once you gain 3%-5% and then exit. This approach is similar to street vending—small profits multiple times, not aiming for maximum profit per trade but stacking wins through frequency.

- Dollar-cost averaging (DCA) (15U weekly): Think of this as forced savings. For example, if you believe Bitcoin has long-term potential, currently at $50,000, and expect it to reach $100,000 in half a year to a year, invest 15U weekly. Don’t get excited about the ups or worried about the downs—just keep investing regularly. This method is especially suitable for those who don’t have time to monitor the market daily; set a plan and let it run automatically.

- Trend following (the rest): This is the core of your strategy. Invest the remaining funds into what you believe are the most promising medium- to long-term trends, but only after thorough research. This money might yield results in a month or may take several months; the key is having a clear judgment of the market’s big direction.

**Practical Tips**

If your capital exceeds 10,000U, adjust your strategy. At this stage, it’s recommended to keep 80% of your funds in spot trading for stability, and only use 20% for contracts. The reason is simple: the larger your capital, the lower your risk tolerance, and you can’t afford to be as aggressive as in the early stages.

Regardless of the phase, the most important thing is mindset. Don’t get greedy when you make profits, and don’t panic when you lose. Many people don’t lose to the market but to their own greed and fear. Set clear take-profit and stop-loss levels, and follow your plan—this is more important than anything. The biggest test in this industry is execution.