With so many people’s positions being liquidated every day, are there really people in the cryptocurrency circle who get rich by speculating in cryptocurrencies?

A month ago, I launched a voting survey involving 100 people. Most of the voters were veterans who had been in the circle for more than two years. So far, only four people have made more than three times the profit of their principal, seven have made more than one times the profit, ten have broken even, and 79 have lost more than 35% of their principal.

This is a super bull market, and only 4% of people have made more than 3 times the profit.

Now the only things retail investors can play with are spot and contract. I have been trading for more than 4 years, and I have been playing with spot, contract, long-term and short-term. Let me tell you about my experience in trading cryptocurrencies.

Let’s talk about spot first:

The price of pancakes has increased 17 times from $3,800 on March 13 last year, and the price of aunties has increased 50 times from $87 on March 13 last year. Very few people eat from start to finish, only one in ten thousand.

To make big money, you can’t rely on small fluctuations but on big trends. You can’t rely on interpreting waves but on grasping the fundamentals. The ability to read the market will not make you big money. The strategy that makes you big money is always “sticking to it”.

Most retail investors don't play with big stocks, but some small knockoffs. They think these two are too expensive. They always think that the knockoffs are low-priced and can be multiplied by many times. I came from the stamp circle and the stock circle, and I deeply understand the power of the monkey stamp and Moutai. I only play with big stocks. The leader of a bull market may not have the highest increase, but the retracement must be the smallest. As time goes by, the true value will be reflected.

Talk about profit and loss ratio:

If 100 loses 50% and only 50 yuan remains, 50 yuan needs to double to 100 yuan, 100 yuan shrinks 70% to 30 yuan, and 30 yuan needs to double 3.3 times to 100 yuan. Buffett often says: The most important thing in trading is to protect the principal! Only by avoiding big risks can you ensure that your funds can grow steadily.

Now let's talk about the contract:

First: If you open a 100x contract and it is wrong, you will be liquidated by 0.5 points, and if it is right, it will double by 1 point. If you open a 50x contract and it is wrong, you will be liquidated by 1.6 points, and if it is right, it will double by 2 points. If you open a 20x contract and it is wrong, you will be liquidated by 4.2 points, and if it is right, it will double by 5 points. Calculate the profit and loss ratio more often. 80% of retail investors who play contracts don’t understand this principle.

There is also a funding rate issue. The perpetual contract fee is: there are many people who are long on the contract, and the long position covers the short position at a rate that guides the market not to go in a single direction. Settlement every 8 hours. Generally around 0.1~0.2, but the position value collected is equal to 2000 if you use 100 yuan to open a 20-fold order. If you collect it at 1/1000, it is 2 yuan, and if you collect it 3 times a day, it is 6 yuan. This fee is also very high!

Second: Many retail investors sell their stocks as soon as they make a profit, and they keep holding on until their positions are liquidated. Most contract players open contracts at high multiples and keep watching the market, not sleeping at night, which makes the relationship between husband and wife unhappy.

Less than 4% of people can make big money by playing spot trading, and less than 1‰ of people can make big money by playing contracts!

Many people see people around them getting rich by speculating in cryptocurrencies, and they always think that they are relying on speculation and luck. In fact, it is not true! They are unwilling to fight with others in the system, and they are unwilling to live in obscurity in society. They are also unwilling to live in the mall for a little profit. They would rather overcome their human weaknesses in such a cruel environment of the trading market, and finally let themselves go and achieve financial freedom! These people should actually be respected.

Finally, I would like to advise new investors who have not yet entered the market that if your job is OK and your traditional trading is acceptable, do not enter the circle. The probability of a newbie losing money is 99%!!!#以太坊ETF批准预期 #币安合约锦标赛