I started with a capital of 200,000 and made nearly 2 million, mainly relying on contracts. But today I want to say something different from others. These are the heartfelt words of an old investor who has experienced both bull and bear markets.
If you want to change your life, please read this
Do you often see the phrase "stay away from contracts and cherish your life"?
Everyone who enters the circle hopes to find a coin that can increase by 100 or 1,000 times, thinking about the saying that one day in the cryptocurrency circle is like ten years in the real world, but now is no longer that era.
If you are an ordinary person without much original capital, and you want to invest in Bitcoin and Ethereum to make a lot of money that can change your destiny, in the past, I would also let you buy BTC ETH and make a lot of money in spot trading. But now, if you don’t have much capital, even if BTC rises to $100,000, it will not completely change your life.
Don't get me wrong, some higher-risk options may be more suitable for you. Profits and losses come from the same source. The amount of risk you can bear determines the amount of return you will get.
Hoarding coins in a bear market and selling them in a bull market can achieve a 100-fold increase and change your life?
I can tell you from my personal experience that it is delusion. Nowadays, the number of currencies in the cryptocurrency circle is almost exceeding the number of leeks. Financing projects are coming one after another, and the speed of listing new coins is faster than the number of leeks. Financing projects are coming one after another, and the speed of listing new coins is even faster than the growth rate of leeks. Look at the average increase of new coins on Binance and Europay. The market value is inflated after listing, and the valuation is outrageous. Institutions continue to invest in projects and get chips at almost no cost. They keep selling them after listing and let leeks take over for them. The funds they cash out in the cryptocurrency circle are drained by them. There are tens of billions of transactions every day, and the valuation of a project after listing is 10 billion. The liquidity of the entire market is less than 1%. It is currently severely anemic. Perhaps this is the nature of the speculative market.
If you say that many people have become financially independent by investing in local stocks, that is a very small minority. I don't want to touch local stocks. It is better to study futures contracts carefully. Even if you leave this circle, there are still many trading targets to choose from.
In this market, you need to master a skill. There are many things that can be done in this industry. Unless you have experts around you, it is difficult to keep up with the pace of the industry. If you want to improve your cognition, the only fastest and most effective way is to consult experienced people or read books. Remember to master one thing, don't try to grasp everything, otherwise you may not be able to do anything. Of course, please put away your prejudice and laziness, invest energy, collect information, and conduct in-depth research, which is far more important than money.
First of all, we must recognize the situation and ourselves. The purpose of coming to this circle is to change our lives. Please build a complete plan for yourself. When to buy? Sell? What to buy? What is the strategy? How to do risk control?
When I communicated with my friends in the group, I repeatedly emphasized that most people can only make money from trends.
In many industries, you can be the best as long as you persist and work hard, but losing money in the investment market is the norm. People who are smarter and more hardworking than you still lose money. Why should you make money? Investment is using money to make money. If the capital is too small, it is easy to breed gambling. Gambling is not terrible. We must gamble with principles. If we gamble, we should gamble with the highest profit-loss ratio.
What is a trend? It means that the bull market lasts for one to two years. You should make plans during the transition from bull to bear market, follow objective laws and data, and go long on the currency standard to accumulate your original assets.
Pay more attention to new projects. People now like new things and new stories. In the bear market, new coins that have just been listed on Binance can be circled. Don't buy them right after they are listed. Spend some time and energy to analyze and study them from multiple angles. If the research is good, it is correct to buy them in batches at this time.
The cryptocurrency industry is developing very fast now, and we need to strengthen our learning in this environment. Risks and benefits coexist. The market has passed the wild growth stage, and potential profits are declining rapidly.
If you want to get rich quickly but don’t want to pay too much attention to these things, then the only thing left is contracts, which even have more possibilities than altcoins.
In the past, I was like most people who came in. Many seniors told me to stay away from contracts and cherish my life, but I always think that the cryptocurrency contract market is a very great product. The cryptocurrency itself is a game of game, a game of human nature, a zero-sum game. Since it is a game, we must first understand the rules of the game. The maturity of people's investment logic is to constantly recognize the rules of the game in this market.
The current cryptocurrency circle is more speculative. Don't look at things with prejudice, and don't think that you are right and others are idiots. Expand your mind and think about problems from multiple perspectives. Everyone has his own way. Buffett can make money by value investing, and Soros can also make money by speculation. No one is necessarily right. The best result is the one that suits you. Please don't be lazy anymore. Spend time and energy to strengthen your trading system so that you will not lose the opportunity to change your destiny again in the future.
Of course, you should first build a long-term plan and understand the spot market's trends thoroughly, then start your contract trading journey. I think contracts are very good investment tools. Not only can you make money when the market rises, you can also make money when the market falls, and you can also use them to hedge spot. If you lose money and your position is liquidated in a contract, it is your fault. It is a problem with your system trading plan. It is not the contract's fault, but the person who uses it. Why should the contract tool be blamed for this mistake? You lose money because you have not established a trading system, you have no discipline, you have a bad mentality, and you do not use stop loss.
Let's understand the advantages and risks of contracts. Can we really fight against human nature and avoid liquidation? I think the cryptocurrency market is now a speculative market. No matter how much the big pie rises, there will be a ceiling. Will it still be an opportunity for ordinary people to buy spot at that time? Some people have little funds. Do you think there is any way to accumulate principal faster in the current market?
Spot goods
Suppose, you only have $1,000 today, and Bitcoin is currently at $30,000. You think Bitcoin is about to rise. If you buy it with $1,000 and it rises to $36,000, you will make $200. Because you only have $1,000, you only make $200 if the price B doubles.
contract
Assuming you also believe that the pie will rise by +20%*5, you will make a profit of $1,000 on your $1,000.
Before you start trading contracts, be sure to learn how to manage your positions and build your own trading system.
The price of the currency has been rising for a while. If you think the price will fall back in the future, you can go short. Then your profit will be the same as above. If it is spot, you can only buy in one direction.
What are the advantages of contracts?
1: Small investment for big gain
Theoretically, in the field of contracts, as long as you open a high multiple, you can expand a small amount of funds countless times. Contracts improve the utilization rate of funds.
In fact, veteran players will use a small portion of their positions to trade contracts in addition to spot trading, but you still don’t want to use a very high leverage unless your trading system is very mature. 2: Profits faster
If you only trade spot, with an average increase of 10% each time, it will take 7 times to double the principal of 10,000. But if you open a 10x contract, you can double the principal by catching a single increase.
Profit = 10000*10*10%=10000
Therefore, if you identify the right direction and use reasonable leverage to amplify the increase, your assets will suddenly increase.
2: Hedge against the risk of falling prices
Cryptocurrency contract trading can not only go long, but also go short
You hold Bitcoin for the long term and do not want to clear out your assets at all costs, but the bear market continues to fall. We can increase our currency base through contract trading and make money by shorting. Many big guys will short to hedge. Simply put, when the market falls, the chips in your hands will shrink, but by shorting we can reduce the shrinkage of chips from the perspective of the gold standard and increase the currency base, and even make money. When you think that the currency price has ended the bear market decline and is about to rise, we can close our positions and hold the spot and wait for the rise.
3: You can do both long and short, which is convenient and flexible
When the cryptocurrency market is bullish, it seems that everything you buy will go up, but once the market enters a bear market, you will find that even if you buy a large amount of coins, you will still lose money. Contracts provide a flexible option, which allows you to not only go long, but also go short. Whether the market is rising or falling, you can make money in both bull and bear markets.
There is no way to make money in the world, especially to make big money and fast money. Contract trading can magnify profits. There are still many big guys who succeeded and achieved a counterattack from the losers. Although many people have been liquidated, it is a game market in itself. Your liquidation does not mean that others cannot do it. You should work harder to improve your internal strength. Contracts can make quick money, but they also bear huge risks of liquidation, which is also the biggest risk. 2: Exchange plug-in
The so-called pin is the technical K-line°, where a very thin line appears up or down. This small line in one minute will not affect the spot, but the short contract is different, because the leverage is magnified and the amplitude is also increased. 100 times will explode with just 1%.
4: Magnified human nature
Anyone who has played with contracts may understand what it is. They clearly saw the right direction, made a trading plan, discipline, stop loss, take profit, position control, leverage, etc., but forgot everything during the intraday trading. They did not execute the stop loss and chose to carry the order, resulting in liquidation. Contracts are also easy to get carried away, constantly magnifying desires and leverage multiples. Many people find it difficult to control their own human nature and cannot follow the trading disciplines to integrate knowledge and action. As a result, liquidation continues in a vicious cycle. In fact, the biggest enemy to face in trading is our own human nature.
Finally, let’s summarize the difference between spot and contract
The capital threshold for spot trading is high, while the capital threshold for contract trading is low
Spot is more suitable for conservative people, while contracts are more suitable for aggressive people
Spot has only one direction, the contract can go up, down or sideways
There is no currency standard return to zero in spot trading, but there is a principal return to zero in contracts
I'm just expressing my opinion on the contract. Please don't criticize me if you don't agree.
The current liquidity is poor, and the main hot money players are all in the band, so it is more suitable to do contracts, and contracts are more suitable for the current market. I am not a contract god. I make a living by trading. I remind myself to respect the market rules every day. I just want to tell you a different perspective on the contract tool. I just want to turn trading into a business through my own efforts. I hope everyone can build their own trading system, use trading to make money, and gain their own success. #DOGE看涨情绪飙升 #BTC创历史新高