Learn from your trading experience, don't be afraid to make mistakes, investing in crypto cannot be said to be a short-term investment, just look at how those who bought ETH under hundreds of dollars before and whether they will sell it now, I think some of them choose to hold it because the price can be even higher, if you are looking for short-term profits, you should play futures, especially with little capital, it is better to buy cheaper tokens such as meme coins, it is more profitable than buying ETH at the current price and with little money.
If before, yes, because cryptos are still new and there are cryptos that are literally slow in terms of growth but now, we are on the fast-paced era even on other things like the technology for example. So short term is now popular as the long term.
Each still has their pros and cons, so there are still people that will prefer long term over the short term one. They are one of the OG's if they bought ETH under a dollar and I think many have not even reached this point but for those who do, they can either sell now (as we are now one of our peaks) or they will just continue what they have started. They already have an experience, so holding longer is not that hard anymore for them. Even though short term only offers small profits at most times, I think it is also more riskier than the long term one.
There are just people who seem to be not contented yet on the risk that it delivers, resulting for them to do futures trading but its return were seem to be higher because it had a multiplier/leverage that we can adjust higher. Their risk is the reason on why you said that we must only use a small amount of capital but even for the other, you can't go wrong with with this approach. A small capital might still go a long way anyway with the help of cheap cryptos, as you said there.