In the cryptocurrency world, which is full of opportunities and challenges, many ordinary people in their 20s and 30s have achieved a leap in wealth, and even earned tens of millions of dollars. Today, we will deeply analyze the operating tips for you, from the basics to the core ideas, full of dry goods, especially for friends with weak foundations.
1. The secret of turning a fortune by accumulating small funds
Rolling strategy: a magic weapon for small funds to counterattack
When you only have a small amount of money, such as $1,000, and the price of Bitcoin is $30,000, it is extremely difficult to achieve substantial profits through spot investment. If you buy Bitcoin with $1,000, even if the price rises to $36,000, the profit is only $200. Therefore, the goal of small funds should focus on contract investment.
Rolling is not a blind operation, but requires following specific points:
1. Patiently wait for the perfect opportunity: A few successful rollovers can yield huge profits and achieve a qualitative change in wealth. Therefore, be sure to restrain your impulses, wait for opportunities with high certainty, and do not operate frequently.
2. Accurately capture the trend reversal point: When the market fluctuates sideways and breaks upward after a sharp drop, the probability of a trend is very high. Be good at finding the key moment of this trend reversal and enter the market decisively.
3. Stick to the long-only strategy: Be patient and stick to the long-only strategy even if an opportunity only appears once every few months.
Analysis and Countermeasures of Rolling Risks
Many people are concerned about rolling positions, but the risk of rolling positions is not high. Take $50,000 as an example. If you open a position when Bitcoin is $10,000, use 10x leverage and position-by-position mode, and only open 10% of the position (that is, $5,000 margin), which is equivalent to 1x leverage, and set a 2-point stop loss. If you stop loss, you will only lose 2% (1,000 US dollars); if the market rises, such as Bitcoin rises to $11,000, continue to open 10% of the total funds and set a 2% stop loss. At this time, even if you stop loss, you will still have an 8% profit. By analogy, if you catch a 50% wave of the market, you are expected to make a profit of about $200,000, and if you catch it twice, you can reach $1 million.
The concept of rolling positions itself is risk-free, but the risk lies in the choice of leverage. You can choose 10x, 1x, or even 0.0x leverage according to your own situation. You don’t have to use high leverage. At the same time, it is recommended to invest only one-fifth of the total funds in the cryptocurrency circle, of which one-tenth of the funds are invested in spot futures, and only use two or three times leverage for futures and focus only on Bitcoin, so that the risk can be controlled at an extremely low level.
Interpretation of Misunderstandings of Small Capital Investment
Many people think that small funds should be short-term in order to quickly grow funds, but this is a big mistake. This idea is an attempt to exchange time for space and get rich overnight. In fact, the smaller the funds, the more they should be medium- and long-term, relying on doubling compound interest to achieve capital growth, rather than chasing short-term petty profits. In addition, honestly hoarding coins, holding on to spot for 3-10 years, and choosing the right target is also a stable way to accumulate small funds.
2. Tips for stable profits with high capital
Money Management: The Key to Stable Profits
When the amount of funds reaches a certain scale, for example, the futures account has 200,000 US dollars, and the spot account fluctuates between 300,000 and 1 million US dollars, fund management is particularly important. Trading is not necessarily full of risks, and it can be effectively resolved through reasonable fund management. If you flexibly adjust the capital investment in the spot account according to market opportunities, you can make a profit of up to 10 million RMB a year if you are lucky. Even if the futures account occasionally explodes, the spot income can make up for the loss, and you can invest again after it is made up. It is recommended that ordinary people use one-tenth of the spot position to play futures. For example, if you have 300,000 funds, you can take out 30,000 to play futures. After the explosion, use the spot profit to supplement it. After multiple attempts, summarize the experience. If you still can't understand it, you may not be suitable for currency circle investment.
3. Core Logic of Digital Currency Investment
Technology Core Revealed
When entering the cryptocurrency circle, many novices will be attracted by the analysis of K-line by bloggers, such as technical indicators such as engulfment and Qiming Star. But in fact, the proportion of disk technology in individual investment is limited, and it is difficult to influence the rise and fall. The real core technology lies in position management, market information capture, market sentiment perception, and greed and fear value judgment. For example, when there is good news in the market, it is necessary to comprehensively analyze its availability, determine the investment point and do a good job of position management. This requires experience and time precipitation, and novices cannot achieve it overnight.
Community investment strategy and market sentiment insights
Take me as an example. In 2020, I formed a community with my old friends in the cryptocurrency circle because there is a high probability that a bull market will come in 2021 (bull markets have cycles, and investment requires patience to wait for opportunities). Through the consultation of community members on investment products such as BTC, we can gain insight into market sentiment. For example, when many people ask whether BTC can be operated, whether to enter or exit, we can perceive the changes in the fear and greed values of the market. This is an important investment signal, which cannot be obtained in time simply by watching the line or news. Facts have proved that forming a community plays a good reference role in bottom-fishing and top-selling!
4. Guide to Safe Withdrawal
In the cryptocurrency world, safe withdrawal is extremely important. Binance is a relatively safe withdrawal platform. It was the first to launch the t+1 model, which can effectively prevent money laundering and freeze the merchant's funds for one day, so that illegal funds dare not stay. When withdrawing funds, you can choose a relatively cheap merchant through the key account manager or in the self-selected column, and try to avoid the merchants with the highest prices to ensure the safety of funds and smooth withdrawal.
Finally, I wish all cryptocurrency friends can achieve financial freedom in this bull market!