Inventory of 4 Little-known Trading Tips in the Cryptocurrency World

1. If you buy 10,000 U at a price of 10 U for a coin, and then buy another 10,000 U when it drops to 5 U, the average cost will be 6.67 U, not the 7.5 U you might think.

2. If you have 100,000 and earn 1% daily, withdrawing your funds after each day, based on 250 trading days per year, your assets could reach 1,323,200 in a year, and after two years, you would have earned 10 million.

3. If the probability of successful investment is 60%, and you invest continuously 100 times, setting both the take-profit and stop-loss at 10%, the final return rate will be 300%.

4. If you enter the market with 10,000 U, earning 10% each time, you can reach 1 million U on the 49th day, 10 million U on the 73rd day, and over 100 million U on the 97th day.

Achieving the above in practice is something that not even one person out of ten thousand can do, the fundamental reason being the inability to control one's greed. I won't mention spot trading here, let's talk about contracts today.

In contract trading, it is essential to have your own position management and capital management, and to combine it with your risk tolerance when opening positions. So, what is position management, and what is capital management?

Position Management, Capital Management: If you have 10,000 U in funds, many new players or some seasoned investors use 20%-30% of their capital as the basic position.

At that time, whether in profit or loss, it can greatly affect your mindset, thus influencing the final outcome.

My personal habit is to use 2%-5% of the capital for basic positions with a leverage of 20 times. Those who use 100 times or even 125 times leverage are essentially courting disaster.

Whether in futures, stocks, or contracts in the crypto world, spot trading is a game of human nature, and leverage amplifies one's greed. Everyone has their own greed, and if you amplify that greed infinitely, you will ultimately be consumed by it.

Therefore, trading must involve your own capital management and position management, as this is the foundation for long-term profitability.

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