In the ever-changing cryptocurrency market, many people continuously pursue opportunities for overnight wealth, leading to two major schools of investment strategies: one focuses on small positions for high multiples, casting a wide net for excess returns; the other emphasizes heavy positions for stable profits, betting on 'certain' opportunities with larger positions, aiming for steady gains. So, which of these two methods is more likely to help investors achieve long-term profitability? Today, let's discuss which approach might be more suitable for you.
Small positions for high multiples: casting a wide net for excess returns
Small positions for high multiples are the choice of many 'underdog warriors' and 'PVP newcomers' in the crypto space. This strategy is quite simple: it involves spreading a small amount of capital across multiple seemingly promising projects. For example, some people spend twenty hours a day in front of their computers continuously observing new small coins, investing a few dozen dollars or even less when they see an opportunity; when luck is on their side, they can earn several times, tens of times, or even hundreds or thousands of times; if a project fails, they won't be too upset since it's a small position and the loss is within bearable limits.
The core of this strategy lies in excess returns. Because it involves small positions, losses can be tolerated, but once a doubling opportunity is grasped, the profits can be magnified, and the funds can quickly multiply several times. Many investors enter the market because they are attracted by these hundredfold or thousandfold coins; everyone dreams of changing their fate through a small coin and achieving financial freedom. There are also various legends circulating in the crypto world about 'earning millions from a $1,000 loan,' leading many newcomers to adopt this small position strategy, hoping to gamble their luck for wealth.
However, the issues with this strategy are also evident. Small positions for high multiples rely more on luck; although it is possible to occasionally make hundreds or thousands of times, those who actually earn are often few. For most people, a wide-net strategy makes it difficult to provide a stable source of income in the short term, resembling gambling. Especially in recent years, as market volatility has intensified and risks associated with small coins have increased, many face high costs of trial and error, resulting in frequent total losses. Therefore, if one hopes to achieve long-term profitability with this approach, it may require very rich experience and keen market judgment.
Heavy positions for stable profits: Lock in certain opportunities
The other strategy is 'heavy positions for stable profits,' which might also be called 'heavy positions following the trend.' This approach is no longer about casting a wide net but rather making heavy investments when the opportunity seems relatively certain to obtain relatively stable returns. Practitioners of this strategy believe in only acting when they see a clear opportunity, seizing it without letting go, and once they have profited sufficiently, they will stop and even take a break for a while.
In their view, an 'opportunity' must have a certain level of certainty. For instance, last year, the news of Trump coming back to office brought clear benefits to cryptocurrencies. Many friends decisively invested heavily in $BTC or $DOGE at that time, and even without leverage, the rise in just one day allowed many to take a break for months. When certain projects were listed on exchanges, such as $neiro and $MOODENG, those who invested heavily seized the low market cap points within a short time, achieving returns of dozens of times. These opportunities share a common characteristic: the market reacts quickly and is relatively certain; once you enter, you need to invest heavily without giving yourself time to hesitate.
This approach seems stable, but it is not without risks. For newcomers, selecting the right targets and timing the profit-taking is not easy, and one's mindset can often waver due to price fluctuations. The challenge with heavy positions following the trend lies in the need to both have the vision to judge opportunities and to overcome the psychological pressure brought about by volatility. This method is more suitable when prices have already risen to a certain stage, rather than recklessly taking heavy positions in the unstable early stages.
The logic behind investment choices
Whether to choose small positions for high multiples or heavy positions for stable profits largely depends on one's financial situation and risk tolerance. If your available funds are limited, you might lean towards small positions for high multiples, since even if a single project goes to zero, the loss won't significantly affect the overall. Conversely, if you have more ample funds and can tolerate some volatility, then heavy positions for stable profits might be a more reasonable choice, as they do not promise outrageous profits but are relatively controllable in the long run.
From the perspective of market conditions, these two strategies are suitable for different market opportunities. If the current market is relatively stable and there are favorable news, heavy positions following the trend might yield better results; however, if the market opportunities are chaotic and volatile, then spreading risks with small positions for high multiples will better fit this environment. Of course, if you have enough time and energy to cast a wide net without missing potential coins, the small position strategy can indeed operate within a relatively stable profit range.
How investment decisions can be adjusted based on personal circumstances
In fact, whether it's casting a wide net with small positions for high multiples or going with the trend with heavy positions for stable profits, there is no absolute right or wrong in choosing either method. Everyone's risk appetite, financial situation, and psychological endurance vary, so the key lies in selecting a strategy that fits oneself.
Personal financial situation: If your principal is small and you wish to achieve large returns with a small amount, then a small position for high multiples may better meet your needs, bearing the risks that come with small positions. For investors with more capital, heavy investment can provide stable returns under a certain margin of safety.
Risk tolerance: Small positions for high multiples can indeed yield higher returns, but the risks are much greater, and one's mindset can easily be affected. Heavy positions for stable profits are more suitable for investors seeking relatively stable returns, provided they have good judgment.
Market adaptability: For newcomers to the cryptocurrency market or those with limited time, it may be more suitable to adopt a heavy position for stable profits when the opportunity seems relatively certain. Investors with the time and energy to 'watch the market' can choose small positions for high multiples, seizing short-term opportunities with significant volatility, especially with highly uncertain coins.
The secret to long-term profitability: mindset, cash flow, and adaptability
For investment, regardless of the chosen method, maintaining continuous cash flow is crucial. Whether it's group fees, consulting fees, or other income, they provide you with the 'ammunition' to ensure you have leeway to adjust during market fluctuations. The cryptocurrency market is characterized by both high risk and high returns; what's important is to maintain a steady mindset and always have a stable source of funds to decisively act when the right opportunity arises.
Small positions for high multiples are indeed attractive, but they rely more on luck and are not stable in the long run; heavy positions for stable profits test one's judgment and execution ability. There is no absolute superiority between the two. Ultimately, the key to long-term profitability lies not in which strategy you choose but in your ability to adapt to market changes and incorporate adjustments that suit you into your strategy.
Therefore, the ultimate secret to long-term profitability may not be sticking to one strategy, but rather adapting flexibly to the market rhythm, choosing an investment approach that suits one's personality and financial capacity, and remaining active in the market. After all, only those who stay in the market have the chance to witness the moment of true 'life-changing' opportunities.
