【Long Money Column】1. The long-term money research column has begun! Progress 5.23%

Author:yh

Review: kk

This is a new column used to record our process of getting rich slowly in web3.

Different people have different investment systems

I have had coffee with KK (Mr. Bai) a few times recently. When we talked about web3 investment, we found that everyone’s investment philosophy and strategy are actually different. Some people only buy BTC (Top 1), some people only buy ETH and BTC (Top 2), some people only buy mainstream coins (Top 20), some people chase hot spots and buy local coins, some people focus on airdrops and open studios, some people focus on mining and sell coins after withdrawing them, and some people don’t buy coins at all but can make money by providing various services in the web3 ecosystem... Different people have different investment systems, there is no distinction between high and low, as long as it can make a profit, it is a good system.

If you haven't made money in web3, don't worry. Maybe your strategy hasn't taken effect yet, or the current investment strategy is not suitable for you. Is it because you haven't strictly followed the plan to carry out your investment system, or you don't have your own investment system yet? You might as well continue to read on to see how we build an investment system step by step. We also invite you to witness it together. If you agree with my point of view, welcome to join and spread it. This may also be a kind of DAO.

About me and this column

As the host of this column, let me first introduce myself.

I am yh, born in the 1990s, graduated from a 985 university, and currently a programmer in a large company. Mr. Bai has been in the cryptocurrency circle for several years and is an evangelist and contributor to the web3 ecosystem.

Mr. Bai and I first met in 2021. He was the first person to spread the concept of DAO to me. This concept is very advanced and abstract. We have always wanted to build DAO and have also tried some web3 projects. After several years of precipitation, I believe that the core of DAO is the continuous exploration of a certain field by a group of users with consensus.

As it happens, I believe that how to make money in the web3 field is an area that everyone is very interested in, has a consensus on, and wants to explore. In addition, there is another opportunity. When communicating with some of my graduate school classmates, including seniors who have worked for many years, I found that everyone began to allocate part of their assets to digital currencies. This group of people represents the smartest group of people in China. They are often pioneers in core positions in various industries, and it often takes a few years for ordinary people to realize this, which shows that this circle is still in a rapid development stage, and it will soon usher in a big explosion (just like the fund boom in 20 years, grandpa and aunt are pouring in). With the compliance of various ETFs and the entry of various institutions, I firmly believe that now is the best golden age, and we are the helmsman of the times. So we decided to open this column to study several typical web3 investments and record our own investment systems. In short, it is to make money together.

The column is divided into two parts, actual trading + concepts, and is updated every Saturday.

My investment philosophy

My investment philosophy can be summarized in one sentence: "Make money easily."

How to understand the word "easy".

First of all, easy means easy to understand.

This column does not cover complex web3 professional terms and terminology. I don’t spend time researching hot topics. Generally, group members will notify me of particularly important and explosive hot topics in the group, and I will know about them passively. I don’t need to actively discover hot topics.

Secondly, relaxation means saving time and energy.

Because of my job (coders know it all), plus some side jobs, I am busy all day. Most of the group members should be like this (Chinese people are suffering). I don’t have time to watch the market, to spread the volume, or to look at the machine. So most short-term trading, airdrops, and mining have nothing to do with me. I prefer to spend my time on hobbies such as playing ball and playing games.

Finally, ease means less operation and easier replication.

My daily operations are minimal and transparent. As a programmer, I have a natural affinity for quantification. Quantification is a good thing, and it can save me a lot of mechanical operations. The quantification here does not refer to the awesome contract quantitative strategy written by myself. Even if I can write it, I will not sell it. Less is more, everything is returned to its original state, and the grid trading provided by major platforms is enough.

Real record

In terms of specific operations, I adhere to the principle of "good assets + good prices + long-term holding" and become rich slowly.

Last year, I spent all my savings to buy a Porsche and a three-bedroom house in the main urban area of ​​Hangzhou. I was just 30 years old that year and didn’t spend a penny from my family.

I have spent all my money and I have made it back. At the same time, I also cleared out the only 0.6 BTC I had left after chasing the ups and downs in the last bull market. The price when I sold it was more than 40,000 yuan. At that time, I asked Mr. Bai to help me clear it. Now there is only 600u left in my account. I made a mistake here. I used the money I needed in the short and medium term (buying a car and a house) for investment. There is no way, I really love investing, but today it seems to be a wrong decision. I am not referring to the operation of selling BTC for more than 40,000 yuan, I mean that I did not do a good job of asset allocation. In the next issue, I will talk about the importance of asset allocation, which is also important for ordinary people.

I currently have two operations in my actual trading.

Operation 1: ETH/BTC grid

After buying the house, I used the remaining 600u of BTC to open a 125x ETH/BTC contract grid robot (Note: Contracts are risky investments, so be cautious). In this round of bull market, BTC rose very fast, while ETH rose very gently, causing the ETH/BTC exchange rate to remain low, even breaking new lows. I have been using this 125x contract robot for more than 60 days. I have not made a short-term plan and have always taken a profit of around 0.08, which reminds us again of our philosophy of "making money easily".

You asked me why I dared to open a 125x contract overnight. Well, it was simply because I had little money and the exchange rate was relatively stable. I was confident that I would not get liquidated.

Because the price dropped too low, I recharged 1000u to increase the margin to prevent liquidation. So my principal is now 1500u.

Everyone knows what happened next. ETH suddenly passed, the ETH/BTC exchange rate soared, and I woke up one day from the brink of liquidation to a 1500% profit.

Let's review whether our operation meets our requirements.

Good assets: The ETH/BTC we bought are all good assets. When their exchange rates fluctuate, it is nothing more than converting part of the BTC into ETH, or converting part of the ETH into BTC, and I firmly believe that neither of them will return to zero.

Good price: The ETH/BTC exchange rate has hit a new low since the last bull market, reaching a minimum of around 0.045.

Long-term holding: I currently have an average of 18.38 grid transactions per day, earning 0.00000126 BTC each time, which is equivalent to a steady profit of 0.000023 BTC per day. My investment cost is only 108u after withdrawing the margin, so there is no reason not to hold it for a long time.

Tool 1: Since I have a small amount of capital and BTC is at a relatively high level, I added appropriate leverage to magnify my returns. If BTC falls in the future but ETH/BTC is still positive, I will not lose money.

Tool 2: Since the floating profit was large enough, I took out all the margin of this contract and used it for dual-currency investment to prevent the funds from idle circulation.

To summarize, the operating method meets the requirements of "good assets + good price + long-term holding", and also meets my concept of "making money easily", so I don't need to make any additional operations on a regular basis.

Operation 2: Fixed investment in BTC

My second move was to start investing in BTC. The truth is simple, and I don’t need to explain why I invest regularly. If you are afraid of buying too expensive, then investing regularly is to buy at any time.

Of course, after buying BTC spot, we don’t just hold it. We will invest in dual-currency financial management and ETH/BTC grid robots.

Good asset: BTC, no need to say more

Good price: According to the classic indicator ahr999, I have been tracking this indicator for many years, which can accurately show the underestimation range of BTC, "fuzzy correctness". The indicator between 0.45-1.2 is the fixed investment range, and 10u is invested every day. Below 0.45 is the bottom-hunting range, and more than 30u is invested every day if you have money.

I just found an ahr999 query address: https://m.528btc.com/data/ahr999.html

(I have changed several query addresses, and the webpage often crashes while I am using it. If you use it more in the future, consider writing a small program to facilitate the query.)

Long-term holding: until the bull market comes, sell part or not sell at all in the overvalued range.

Tool 1: Fixed investment, no need for operation, no need for timing, and smooth out the cost.

Tool 2: Dual-currency financial management anchored above 72,000, just treat it as Yu'e Bao, and the return can be >5%.

Tool 3: Open a grid robot when the ETH/BTC exchange rate is low. This requires you to have confidence in ETH.

The real trading chapter will be placed at the front of the subsequent weekly reports, and we will report to all spiritual shareholders every week. Our first small goal is to save 1 BTC for ourselves and help everyone save 1 BTC. The current progress is 5.23%. Don’t complain about the slowness or the small amount. When the number of people in the group is equivalent to a few BTC, let’s meet at the top.

Practice together and get rich slowly

If you want to see the sequel of Making Money and watch us getting rich together, you might as well join our Making Money Research Institute and chat in the group to urge for updates.

We are just spreading investment ideas and looking for consensus, not private placement, and we will never operate your account! All your funds are not in our hands, don't be fooled.

It’s up to you to choose which platform you want. I’m currently using Pai. When the amount of funds becomes large in the future, I will probably transfer it to Binance.