The so-called rolling position usually refers to reinvesting floating profits into purchases, which is also known as profit reinvestment. However, there are actually many different strategies for rolling investment, some of which are achieved in long-term holding of a single currency, and some of which are quickly switched between multiple currencies in a short period of time, but the basic principle remains unchanged, all of which are to reinvest profits.
Rolling investment can maximize profits continuously, and there is no upper limit, especially frequent operations between multiple currencies, even if the principal is not much, huge profits can be achieved.
Rolling investment is usually based on long positions in contract trading, because the growth potential of cryptocurrencies is huge, especially for some non-mainstream currencies, the daily growth of popular currencies may reach 30-50%, or even 80%. For rolling investment, encountering such a currency will bring amazing returns.
Based on the experience of many actual transactions, taking $50 as an example, using 20x leverage, if you hold a currency, the daily growth rate reaches 30%, and you continue to roll investment in this process, you can eventually achieve a return of $6,000-10,000, which is nearly 200 times the original principal of $50.
Of course, the tolerance rate of 20x leverage is low unless the currency is unilaterally rising. If there is a 4% or so pullback in the market, it is easy to lose all profits (unless a capital-protecting stop loss is set). Therefore, for novices, when they first try rolling investment, it is recommended to use 5x or 10x leverage, which can greatly improve the error tolerance rate. Generally speaking, strong currencies are unlikely to have a 10% pullback in the market, so it is much easier to use 20x leverage.
However, the income will also be reduced accordingly. Using 10x leverage, according to a 30% increase, the final income is about 2,000-3,000 US dollars, which is still quite good. It is also a classic example of contract trading with a small investment, showing the charm of contract trading.
Contract trading is a high-risk and high-return investment method. If you invest a lot of money in trading at the beginning, unless you have strong technical analysis skills and risk management level, the result is likely to be a loss. Before reaching this level, the best practice is to invest in hot currencies with small funds such as 50-100 US dollars and make rolling investments, which is also the most likely operation for ordinary people to double their wealth.