I don't know if you often see the phrase 'Stay away from contracts, cherish life'?

Everyone enters the market hoping to find a hundredfold or thousandfold coin, thinking of that phrase that one day in the crypto world equals ten years in the real world, but now that era is gone.

If you are an ordinary person with little initial capital, and you want to invest in Bitcoin or Ethereum to earn big money that can change your fate, in the past, I would have told you to buy BTC and ETH. Spot trading can also make a lot of money, but now if you don’t have much capital, even if BTC rises to $100,000, it won’t completely change your life.

Don't misunderstand me, some higher-risk options may be more suitable for you; profits and losses come from the same source. The more risk you can bear, the more returns you will have.

Holding coins in a bear market, selling in a bull market can achieve a hundredfold increase to change your life? I can tell you from personal experience that it is a delusion. Nowadays, the number of coins in the crypto market is even surpassing the number of retail investors. Funded projects come one after another, and the speed of new coin launches is faster than the growth rate of retail investors. Look at the average increase in new coins on Binance and Huobi; the initial listing often shows overvalued market caps, with ridiculous valuations. Institutions continue to invest in projects and obtain nearly costless chips. Once listed, they continuously sell off, making retail investors take the losses. They have drained the funds in the crypto market, with daily trading volumes in the billions. A project listing with a valuation of 10 billion, and the entire market's liquidity is less than 1%. Currently, there is serious anemia; perhaps this is the essence of the speculative market.

If you say that many people have achieved financial freedom relying on shitcoins, that is very few. I am reluctant to touch shitcoins; instead of that, it is better to study contracts and futures well. Even if you leave this circle, there are still many trading targets to choose from.

In this market, you need to master one skill. There are many things that can be done in this industry. Unless you have experts around you, otherwise, it will be difficult for you to keep pace with the industry's rhythm. If you want to improve your understanding, the only fastest and most effective way is to consult experienced people or read books. Always remember to master one thing; don't try to grasp everything, or you might end up accomplishing nothing. Of course, put away your biases and laziness, invest your energy, gather information, and conduct in-depth research; this is much more important than money.

First, we must recognize the situation and ourselves. The purpose of coming to this circle is to change one's life. Please build a complete plan for yourself: When to buy? When to sell? What assets to buy? What is the strategy? How to manage risks?

In conversations with friends in the group, I repeatedly emphasize that most people can only earn trend money. Many industries can achieve excellence as long as you persist with dedication, but losing money in the investment market is the norm. Here, those smarter and more diligent than you still lose money. Why would you definitely make money? Investing is making money with money; with too little capital, it is easy to breed toxicity. Toxicity is not scary; we need to engage with principles. Since you engage, do so with the highest risk-reward ratio.

What is a trend? It is a bull market that lasts for one to two years. Make a plan during the bull-bear transition period, follow objective rules and data, and accumulate your original assets in coin terms.

Pay more attention to new projects. People now like fresh things and also new stories. Don't buy newly listed coins on Binance right away; take some time and energy to analyze and study them from multiple angles. If the research is good, consistently buying in batches is the right strategy.

The crypto market is developing very quickly now, and in such an environment, you need to strengthen your learning. Risks and returns coexist. The market has already passed the stage of barbaric growth, and potential profits are rapidly declining. If you want to get rich quickly but don't want to pay too much attention to these, then contracts are your only option. Contracts even have more possibilities than shitcoins.

In the past, I was the same as most people who entered. Many seniors advised me to stay away from contracts and cherish life, but I always felt that the crypto contract market is a very great product. The crypto market itself is a game of gambling, a game of human nature, a zero-sum game. Since it is a game, we must first understand the rules of the game. The maturity of human investment logic is constantly recognizing the rules of the game in this market.

The speculative nature of the current crypto market is heavier. Don't carry biases when looking at things, and don't think you are right and others are fools. Broaden your mind a bit, think from multiple perspectives. Everyone has their own path. Buffett's value investing can make money, and Soros's speculation can also make money. No one is necessarily correct. What suits you and gets you results is the best. Please don’t slack off; invest time and energy to strengthen your trading system, so that your future self will not lose this opportunity to change your fate again.

Of course, first build a long-term plan, clearly understand the spot trading waves, and then start your contract trading journey. I think contracts are an excellent investment tool; not only can you make money when the market rises, but you can also make money when it falls. They can also be used to hedge against spot trading. If you lose money or get liquidated in contracts, it is your fault, a problem with your trading system and trading plan. This is not the fault of the contract itself. The existence of contracts is like a tool; what’s wrong with the tool? It is the user who has made a mistake. Why should the contract bear the blame for this mistake? You lose money because you haven't established a trading system, lack discipline, have a poor mindset, and don't set stop losses.

Let's understand the advantages and risks of contracts. Can we really fight human nature to avoid liquidation? I think the current crypto market belongs to the speculative market. No matter how much Bitcoin rises, there is a ceiling. At that time, can ordinary people still buy spot as an opportunity? Some people have little capital; do you think there are ways in today's market to accumulate capital faster?

Spot

Assuming that you only have $1000 today, and Bitcoin is currently $30000, you believe Bitcoin is about to rise. If you buy in for $1000 and it rises to $36000, you earn $200. Because you only have $1000, the price needs to double for you to earn $200.

Contracts

Assuming you also think that Bitcoin is about to rise +20%*5, your $1000 will earn $1000.

Before you start trading contracts, make sure to learn how to manage positions and build your own trading system.

If the price of the coin has risen for a while and you think the price will correct in the future, you can short it. Your profit will be the same as the result above. If it’s spot trading, you only have one direction to buy up.

What are the advantages of contracts?

1: Theoretically, in the field of contracts, as long as you open a higher multiple, you can expand a small amount of capital several times. Contracts enhance capital utilization.

In fact, experienced players will allocate a small portion of their position to contracts aside from spot trading, but you still shouldn't use particularly high leverage unless your trading system is very mature.

2: Profit faster

If you are only trading spot, calculating with an average increase of 10% each time, it takes 7 times to double $10,000. However, if you open a tenfold contract and catch one rise, your capital can double.

Profit = 10000 * 10 * 10% = 10000

So, identify the direction clearly, and use reasonable leverage to magnify the gains. Your assets can experience sudden explosive growth.

3: Hedge against the risk of decline

Crypto contracts not only allow you to go long but also let you go short.

You hold Bitcoin long-term and don't want to empty your assets, but in a bear market, Bitcoin continues to decline. Through contract trading, we can increase our coin base and also short to make money. Many big players will short for hedging. Simply put, when the market declines, the chips in hand will shrink, but by shorting, we can reduce the shrinkage from the perspective of capital base and increase the coin base, possibly even making a profit. When you think the coin price has ended its bear market decline and is about to rise, we can close our positions and hold the spot while waiting for the increase.

4: Can go long and short, convenient and flexible

In a bull market, it seems like anything you buy will rise. However, once entering a bear market, you will find that even buying Bitcoin will lead to losses. Contracts provide a flexible option; you can go long or short, and regardless of whether the market is rising or falling, whether in a bull market or bear market, you can make money.


I am preparing to launch a strategic order soon!!!
Doubling is still very simple.
At the same time, I am also preparing to find some potential coins to hold until the end of the year.
Comment 888 to get on board!!!
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Daily focus: not xlm xrp ada doge pepe sol