Today, we will reveal four little-known strategies for cryptocurrency trading

The art of cost amortization: When a currency is at 10U and you buy 10,000 U, if it falls to 5U and you buy another 10,000 U, your average cost is actually only 6.67U, not the intuitive 7.5 U. This strategy can significantly reduce your overall costs and is an important technique for investors to protect their assets in volatile markets.

The magic of compound interest: If you can steadily earn 1% profit every day, based on 250 trading days per year, your assets will grow to 132.32% after one year, and it will be astonishing after two years. However, it needs to be emphasized that sustained and stable profits are not easy, but understanding the power of compound interest is crucial for long-term investment planning.

The relationship between winning rate and income: Suppose your investment winning rate is 60%, and you set a 10% stop-profit and stop-loss point. After investing 100 times in a row, your rate of return may be as high as 300%. This demonstrates the importance of setting reasonable take-profit and stop-loss points to improve overall returns when the winning rate is stable.

The charm and risk of exponential growth: Starting from 10,000 U, with a profit of 10% each time, theoretically your assets can reach 1 million U after 49 days, 10 million U after 73 days, and even exceed 100 million after 97 days. But keep in mind that this kind of exponential growth requires a high degree of discipline and control, and market fluctuations can disrupt this ideal state at any time.

However, in actual trading, very few people are able to achieve these ideal results. Because the biggest challenge often comes from our inner greed. While pursuing high returns, we often overlook the importance of risk management.

Especially in contract trading, position management and money management strategies are crucial. Beginners tend to take excessive risks and use a high proportion of their capital to trade. My personal suggestion is to only use 2%-5% of the principal as the basic position, and control the leverage within 20 times. Those who blindly pursue high leverage are actually taking risks rather than investing.

Trading is a battle of human nature. We not only have to fight the market with wisdom and courage, but also have to fight with our own hearts. Only by controlling greed and doing a good job in fund management and position management can we achieve steady profits in the long term. I hope these suggestions can be helpful to you, and I wish you go further and further on the road of trading!