New Strategy for Cryptocurrency Trading: One-fifth Trading Method!!!
Fund Allocation: First, divide your funds into five equal parts. Taking $10,000 as an example, each part should be $2,000.
First purchase: Use one of the funds to buy your favorite currency at the current market price.
Downward purchase strategy: If the price of the currency drops by 10%, use another part of the funds to buy.
Upward sales strategy: When the price of the currency rises by 10%, sell one part immediately.
Cyclic operation: Follow the above rules and continue to operate until all funds are used up or all currencies are sold.
The advantage of this strategy is that you don’t have to be too anxious even when the currency price falls. Because the strategy has reserved funds for low-price purchases,
In fact, if all five funds are used up, it means that you have successfully continued to buy in the process of the currency price falling by nearly 50%.
Unless the market as a whole falls sharply, such a decline is not easy to achieve. From the perspective of income, each selling action can lock in a 10% profit. Take $100,000 as an example. If you use $20,000 each time, each sale can bring you a fixed income of $2,000.
But it should be noted that the price fluctuation of 10% is relatively large, which may lead to insufficient execution of transactions, thereby increasing waiting time.
This will affect the efficiency of fund use, because funds may not be effectively used for a long time or be occupied by a certain currency for a long time.
In order to optimize this, you can consider adjusting your strategy, such as choosing a more stable currency for trading.
At the same time, when funds are idle, you can choose to invest in Binance's wealth management products, which can not only get extra income while waiting for the currency price to change, but also effectively improve the overall utilization of funds.
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