Today, we will reveal four little-known facts about cryptocurrency trading to help you avoid detours on your trading journey.
First, a little trick about averaging costs. When you buy 10,000 U of a certain currency at a price of 10 U, and then when the price drops to 5 U, you buy another 10,000 U. At this time, your average cost is actually 6.67 U, not 7.5 U as you originally thought. This operation method can effectively reduce your average cost and help you get more profits when the market rebounds.
Second, stable income accumulation. If you can earn a stable 1% profit every day, then based on 250 trading days per year, your assets will grow to 1,323,200 times the original amount in one year, and you can earn 10 million in two years. Doesn't this kind of income growth sound very tempting?
Third, the relationship between winning rate and returns. Assuming your investment winning rate is 60%, you invest 100 times in a row, and set a 10% take-profit and stop-loss strategy, your final return rate may reach an astonishing 300%. This shows that in investment, reasonable strategies and settings are the key to obtaining high returns.
Fourth, about the method of quickly accumulating assets. Starting from 10,000 U, and making a profit of 10% each time, on the 49th day, your assets can reach 1 million U; on the 73rd day, it can reach 10 million U; on the 97th day, your assets can even exceed 100 million. However, this requires extremely high discipline and control. In fact, very few people can do this in investment, because the biggest enemy is often our inner greed.
In the cryptocurrency trading, in addition to the knowledge mentioned above, contract trading is also a part that we cannot ignore. When conducting contract trading, we must have our own position management and fund management strategies. Position management and fund management may sound simple, but for novices, it is easy to use 20%-30% of the principal to take risks. I personally suggest that we should only use 2%-5% of the principal as the basic position and control the leverage within 20 times. Those who use 100x or 125x leverage at will are actually playing with fire. Whether it is futures, stocks or cryptocurrency contract trading, it is a contest of human nature. Leverage will magnify our greed. If we cannot control it, we may eventually be swallowed by it. Therefore, good fund management and position management is the key to achieving long-term profitability.
In addition, I would like to remind you to pay attention to the performance of some currencies, such as DAR, Alice, Pendle, STX, Aevo, etc. If you want to know more about the relevant knowledge and first-hand cutting-edge information of the cryptocurrency circle, welcome to follow me and join my circle. I will publish market analysis every day and share my observations and insights with you.
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