Do you know why 90% of people lose money in crypto?
Because they have no idea how to hunt for information
I’ve seen far too many people glued to candlestick charts every day, chasing the market as soon as news breaks and panicking whenever prices move
After all that effort, they’ve paid plenty in fees, yet their accounts keep shrinking
If you want to change that, first learn to use information advantages, then establish clear trading rules
Step 1: Stop the bleeding—don’t rush to make your money back
With 3,000U in starting capital, you can manage your funds separately:
2,000U: Focus on spot trading in major coins, building your positions in stages
800U: Set aside for arbitrage with a clear rationale or short-term opportunities
200U: Keep in reserve and don’t use it casually
Adjust the proportions based on your own risk tolerance. Above all, don’t assume that because your starting capital is small, high leverage is the way to turn your fortunes around overnight
Step 2: Study price spreads and funding rates
Price differences sometimes emerge between exchanges
Funding rates on perpetual contracts may also create arbitrage opportunities
But don’t rush to place an order just because you spot a price gap. First subtract fees, slippage, and funding costs, then assess the risk after hedging
For example, you could buy spot on one side and short an equivalent amount in perpetual contracts to reduce some of the risk from price fluctuations. However, a widening basis, changing funding rates, and exchange risks could all cause an arbitrage strategy to lose money
Step 3: Small-cap coins offer opportunities, but carry greater risks
Recently listed coins are highly volatile and can indeed see short-term rallies, but issues like low liquidity, concentrated holdings, and sudden sell-offs are also common
Before getting involved, check trading volume, liquidity, unlock schedules, and token distribution. If you don’t have a clear entry rationale and stop-loss level, don’t rush in
At the end of the day, information advantages matter in crypto, but what matters even more is whether you can verify the information, calculate the costs, and manage risk once you have it
Stop looking for coins that will go up 100x. First understand the rationale behind every trade and keep your losses under control. That’s how your account has a chance to grow over time
Because they have no idea how to hunt for information
I’ve seen far too many people glued to candlestick charts every day, chasing the market as soon as news breaks and panicking whenever prices move
After all that effort, they’ve paid plenty in fees, yet their accounts keep shrinking
If you want to change that, first learn to use information advantages, then establish clear trading rules
Step 1: Stop the bleeding—don’t rush to make your money back
With 3,000U in starting capital, you can manage your funds separately:
2,000U: Focus on spot trading in major coins, building your positions in stages
800U: Set aside for arbitrage with a clear rationale or short-term opportunities
200U: Keep in reserve and don’t use it casually
Adjust the proportions based on your own risk tolerance. Above all, don’t assume that because your starting capital is small, high leverage is the way to turn your fortunes around overnight
Step 2: Study price spreads and funding rates
Price differences sometimes emerge between exchanges
Funding rates on perpetual contracts may also create arbitrage opportunities
But don’t rush to place an order just because you spot a price gap. First subtract fees, slippage, and funding costs, then assess the risk after hedging
For example, you could buy spot on one side and short an equivalent amount in perpetual contracts to reduce some of the risk from price fluctuations. However, a widening basis, changing funding rates, and exchange risks could all cause an arbitrage strategy to lose money
Step 3: Small-cap coins offer opportunities, but carry greater risks
Recently listed coins are highly volatile and can indeed see short-term rallies, but issues like low liquidity, concentrated holdings, and sudden sell-offs are also common
Before getting involved, check trading volume, liquidity, unlock schedules, and token distribution. If you don’t have a clear entry rationale and stop-loss level, don’t rush in
At the end of the day, information advantages matter in crypto, but what matters even more is whether you can verify the information, calculate the costs, and manage risk once you have it
Stop looking for coins that will go up 100x. First understand the rationale behind every trade and keep your losses under control. That’s how your account has a chance to grow over time
