A simple but very practical strategy for trading cryptocurrencies:

Divide the funds on hand into five equal parts. For example, if you have $10,000, divide it into five parts, and use $2,000 for each transaction. Use one part of the funds to buy a currency at the current price. If the price of the currency drops by 10%, buy another part. When the price of the currency rises by 10%, sell one part. Repeat the above steps until all the funds are used up or all the coins are sold.

The advantage of this strategy is that there is no need to worry even if the price of the currency drops, because we will continue to buy when the price of the currency drops.

In fact, if all five parts of the funds are used up, the price of the currency has at least fallen by nearly 50%. Unless there is a waterfall in the market, the price of the currency is unlikely to fall so sharply. From the perspective of income, each sale can bring a 10% profit. For example, taking a total fund of $100,000 as an example, if $20,000 is used each time, then each sale will earn $2,000.

However, this strategy also has certain problems. The fluctuation range of 10% is relatively large, which may make it difficult to complete the transaction, and it will take longer to wait. This will affect the efficiency of fund use, because funds may be idle for a long time or always occupied by a certain currency.

However, this problem can be solved by reducing the volatility. For example, you can choose to buy a currency with high stability and choose Binance financial products for investment when funds are idle. This way, you can get extra income while waiting for the currency price to change.