Secrets to Getting Rich in the Crypto Space - Rolling Positions, specifically for newcomers or veterans in the crypto space, take a minute to read and learn how to turn 1,000 into 1 million!
I have personally tested methods to turn 8,000 into 10 million using the following rolling strategy!
Concept of Rolling Positions
Rolling positions, as the name suggests, involve continuously opening and closing positions in contract trading in order to profit gradually in fluctuating markets. It’s like practicing Tai Chi, using force to counter force, moving with the market to turn volatility into a source of profit.
Rolling Position Strategy
Players who adopt rolling strategies usually have keen market instincts and quick reaction abilities. They watch the candlestick movements like cheetahs, and once they capture favorable signals, they decisively strike, aiming to 'scalp' profits in every wave of rises and falls.
Rolling Position Risks
However, rolling positions are not a guaranteed way to make profits. High-frequency operations mean high transaction costs, and a slight misstep can lead to losses. Moreover, the market is ever-changing; a slight misjudgment can get you ‘washed ashore’ by reverse trends and fall into a vicious cycle of worsening losses.
The Three Steps of Rolling Positions
Find the Right Rhythm
The first step in rolling positions is to find the right market rhythm. Just like a dancer must keep up with the music, investors need to study market trends deeply, understand price fluctuation patterns, and find the most suitable range for rolling positions or trending markets.
Set Stop Loss and Take Profit
Rolling positions are like walking a tightrope; risk control is crucial. Setting reasonable stop-loss points can prevent substantial losses caused by sudden market changes; setting target take-profit points ensures timely locking in profits to avoid greed leading to profit loss.
Mindset Adjustment
In rolling operations, mindset determines success or failure. In the face of profit and loss fluctuations, remain calm and do not lose your footing due to momentary gains or losses. Remember, rolling positions are a long-term battle, not a one-time deal; only by 'maintaining a broad view' can you laugh to the end amidst the crypto waves.
Advantages of Rolling Positions
For experienced veterans, rolling positions are like icing on the cake, effectively improving capital efficiency and amplifying profits. Especially in volatile market environments, rolling strategies can showcase their unique charm, helping players navigate smoothly through 'blood and gore'.
Challenges of Rolling Positions
However, rolling positions are not suitable for everyone. New players who blindly follow trends may be swallowed by the high-intensity operations and high-risk characteristics of rolling positions, becoming part of the 'farming army'. Moreover, over-reliance on rolling positions may lead to excessive trading and fall into the quagmire of 'trading addiction'.
The Choice of Rolling Positions
Therefore, for investors, whether to choose rolling positions depends on matching self-awareness and risk tolerance. If you have solid fundamentals, a good mindset, and a deep understanding of the market, rolling positions may become a powerful tool for you in the crypto space; otherwise, if you only have a 'gamble' mentality, rolling positions may only accelerate your wealth evaporating.
Secrets to Success in the Crypto Space: How Ordinary People in Their 20s and 30s Can Skillfully Operate and Easily Earn Tens of Millions!
After communicating with many fans, I found that there are many ordinary groups in the crypto space who are eager to seek profit. Many people still feel confused and lost about how to effectively invest in the crypto space.
First, we must clarify that investing in the crypto space is essentially a financial investment behavior. Our goal should be to achieve long-term stable profits by continuously working to let assets appreciate over time. If we always hope for overnight riches and frequently chase market ups and downs, this is akin to gambling rather than making wise investment decisions.
In the crypto space, we must not only learn to wait for the right opportunity but also have the ability to identify the size of opportunities. We should not blindly trade with small or large positions but should flexibly adjust positions based on the actual market situation and our own risk tolerance. In most cases, we can choose to trade with small positions to accumulate experience and hone skills. When significant opportunities arise in the market, we should decisively take action and increase positions to gain larger profits.
Taking rolling positions as an example, this is a trading strategy that should only be adopted when there are significant opportunities in the market. We should not frequently roll positions to avoid increasing risks. Even if we miss certain opportunities, there is no need to regret too much because as long as we can seize a few key opportunities, it is possible to achieve significant asset appreciation. The leap from zero to millions or even tens of millions only requires a few successful rolling operations to elevate ordinary people to wealth.
Rolling Trading Strategy and Operations for Small to Medium Capital
In the spot market, imagine that you only have $1,000 today, and the current price of Bitcoin is $70,000. If you predict that Bitcoin is about to rise and decide to buy in with this $1,000, then when the price rises to $76,000, your profit will be $600. However, since your initial investment was only $1,000, even if the price rises significantly, your profit remains relatively limited.
While occasionally following some experienced analysts or bloggers may earn some small profits, to achieve significant wealth growth, such strategies may be insufficient. Therefore, for small to medium-sized capital, a more efficient strategy may be to utilize contract trading.
Using Bitcoin as an example, if you predict that its price will rise 20% in a short time and sustain for a period (e.g., 5 trading days), then through contract trading, you can leverage to amplify your profits. For instance, using 10x leverage, your $1,000 will have the purchasing power of $10,000. When the Bitcoin price rises 20% as you predicted, your contract profit will reach $2,000, far exceeding your earnings in the spot market.
But I must emphasize that while contracts have significant profit potential, they also come with high risks.
Key Points of Rolling Strategy:
1. Patience is Paramount: The core of the rolling strategy lies in waiting for the best moment, as once successful, the profits can be substantial. You need to look for opportunities with extremely high certainty, such as a market experiencing a sharp drop followed by consolidation, and be prepared to act decisively at the moment of upward breakout.
2. Trend Capturing: In the market, reversals of trends often come with significant profit opportunities. You need to keenly perceive changes in trends and take decisive action. Remember, rolling positions can only exert their maximum power when trends are clear.
3. Focus on Long Positions: In rolling strategies, it is advisable to focus on bullish markets, i.e., only choose products with obvious upward trends for operation. This can reduce operational difficulty and increase success rates.
Rolling Position Risk Analysis
Many people may hold a skeptical attitude towards the risks of rolling strategies. However, in reality, as long as they are operated reasonably, their risks are controllable and even much lower than conventional operations in the spot market.
Assuming you have 50,000 in capital, you can view it as your profit principal. When Bitcoin prices are at 10,000, you can choose to use 10x leverage but only open 10% of the position, i.e., using $5,000 as margin. This way, your actual leverage ratio is only 1x, with a 2% stop-loss point set. Even if the stop-loss is triggered, your loss is only $100, far below your expected risk.
If the market rises to 11,000 as you expected, you can continue to add to your position using the same strategy and set a 2% stop loss. Even if the stop loss is triggered again, your overall profit remains positive. As the price of Bitcoin rises, you can gradually increase your position, but always maintain reasonable stop loss settings.
In a rolling strategy, the key is reasonable position management. As long as you can manage your positions correctly and control risks, the rolling strategy will bring you substantial returns. However, compounding is not the core of the rolling strategy; the real key is to capture the market's major trends and achieve stable profit growth through reasonable position management!
The concept of rolling positions itself is a prudent strategy, fundamentally aimed at capturing the long-term trends of the market rather than blindly pursuing short-term profits. Risks often arise from improper use of leverage.
Whether using 10x leverage or 1x leverage, the key is how to use this tool to amplify profits while controlling risks. I personally prefer to use two to three times leverage because this ratio can provide a certain degree of amplification while maintaining adequate capital security. It is important to understand that the choice of leverage is not directly related to the rolling strategy itself but depends on individual risk tolerance and market judgment.
I have always emphasized that investing should be cautious; do not invest all your funds into one market. In the crypto space, I recommend that investors allocate one-fifth of their funds for investment, with only one-tenth for spot investment, and use the remaining funds for futures trading. This way, the proportion of trading funds to total funds is only 2%, greatly reducing overall risk. Additionally, I always stress the importance of position management. Even when facing small losses, we should not easily waver in our strategy.
For small-cap players, it is essential to focus on medium to long-term investments rather than pursuing short-term windfalls. By holding high-quality potential coins for the long term and patiently waiting for their value to grow, you can achieve a more prudent and reliable path to wealth. Remember, true success comes from a deep understanding of the market and wise investment decisions, not just luck or short-term speculation.
Capital Accumulation and Wise Management
As you gradually accumulate a certain amount of capital, strategic investment choices become particularly important. Avoid over-trading contracts; remember that only by using earned money to make money and maintaining stable profits can you ensure long-term wealth growth.
Spot and Capital Allocation are key factors. Trading is not always filled with risks; through reasonable capital management, we can effectively reduce these risks.
While the luck factor in trading cannot be ignored, making over ten million RMB in profit within a year is already very considerable. Even if luck is not on your side and you incur losses in your futures account, the profits from spot trading can compensate for these losses. What’s important is to ensure that the spot account remains profitable so that even if there are fluctuations in futures trading, we have enough funds to cope.
For ordinary people, I suggest allocating one-tenth of the spot position to futures trading. If you have 300,000 in spot, only take out 30,000 for futures trading. If futures trading incurs losses, you can replenish funds from spot profits. After multiple attempts and practices, you may gradually figure out a trading strategy that suits you. But if you still cannot find a suitable method, then this field may not be right for you.
Core Strategy Analysis
For newcomers to the crypto space, it is even more important to focus on systematic learning and develop your own mature profit system through learning!
In reality, in the crypto space, the more critical factors are position management, capturing market information, and judging market sentiment. These factors are far more likely to influence the success or failure of investments than mere technical analysis.
After 10 years of trading in cryptocurrencies, from entering the market with 8,000 to achieving 10 million, then falling into 8 million debt, and now achieving financial freedom, I have experienced all the ups and downs, stepping into every pitfall in the market. From this, I have gained insights and written this article (Basic Knowledge for Newcomers in the Crypto Space) to comprehensively analyze investment risks and opportunities from basic knowledge to advanced strategies, hoping it will genuinely help those who see it!
Introduction to Cryptocurrency Trading
What is Cryptocurrency Trading?
Cryptocurrency trading refers to the act of buying or selling cryptocurrencies through Contracts for Difference (CFD) trading accounts or directly on cryptocurrency exchanges. These trades allow investors to gain profits by betting on the price fluctuations of cryptocurrencies without directly owning them.
Contracts for Difference (CFD) Trading in Cryptocurrencies
Contracts for Difference (CFD) are a type of derivative that allows investors to speculate on the price movements of cryptocurrencies without actually owning them. Investors can participate in the market by going long (buying) or short (selling) and earn profits or incur losses based on price fluctuations.
Leverage Trading Analysis
CFD trading is a leveraged trading product, meaning investors only need to invest a small margin to gain full exposure to the relevant market. While leverage can amplify profits, it can also magnify losses, so investors need to manage risks carefully.
Buy and sell cryptocurrencies through exchanges.
On a cryptocurrency exchange, investors can purchase actual cryptocurrencies, which requires them to open an account on the exchange and use cash or other assets to buy. After purchasing, investors need to store the cryptocurrency in their digital wallet until they decide to sell.
Notes on Exchange Trading
Trading on exchanges requires investors to have the necessary technical knowledge and to understand market dynamics and price changes. Additionally, exchanges usually have minimum deposit limits and may charge account maintenance fees.
Cryptocurrency and Index Funds
How Does the Cryptocurrency Market Work?
The cryptocurrency market is decentralized, meaning they are not issued or endorsed by governments or other central authorities. Rather, they operate on computer networks and are traded through exchanges and stored in 'wallets'.
Blockchain Technology
Cryptocurrencies use blockchain technology to record transaction history and changes in ownership. When a user wants to send cryptocurrency to another user, they simply send the cryptocurrency to the recipient's digital wallet address. These transactions are recorded on the blockchain and validated and confirmed through the mining process.
Mining
Cryptocurrency mining is the process of validating transactions and adding new blocks to the blockchain. Miners compete to create new blocks by solving complex mathematical problems and receive a certain amount of cryptocurrency as a reward. This process ensures the security and integrity of the blockchain.
Factors Driving the Cryptocurrency Market
The price movements in the cryptocurrency market are influenced by various factors, including supply, market capitalization, media coverage, level of consolidation, and key events. Due to the decentralized nature of the cryptocurrency market, they are often not impacted by traditional economic and political factors.
Newcomer to the Crypto Space, You Need to Pay Attention to These!
With the booming development of the cryptocurrency market, more and more newcomers are entering this field full of opportunities and challenges. However, due to a lack of experience, newcomers often fall into misconceptions or risks. Here are some points that new entrants to the crypto space should pay attention to, helping you better adapt to this market.
One, Basic Knowledge Section
Understanding Cryptocurrency: Before entering the cryptocurrency market, mastering its basic concepts, blockchain technology, and common terminology is crucial.
Choose Trading Platforms: Select reputable, safe, and reliable trading platforms to ensure asset security.
Private Key Security: The security of cryptocurrencies relies on private keys; be sure to keep them safe and take necessary security measures.
Two, Investment Strategy Section
Diversify Investments: Follow the principle of 'Do not put all your eggs in one basket' to reduce risk through diversified investments.
Long-term Investment: Long-term investment strategies are more prudent and help avoid risks brought by market fluctuations.
Follow Market Dynamics: Understand the latest dynamics and trends in the cryptocurrency market to make informed investment decisions.
Three, Risk Management Section
Carefully Choose Projects: Conduct thorough research and due diligence before investing in cryptocurrency projects.
Risk Awareness: Recognize and prevent various risks in the cryptocurrency market, such as market risks, technological risks, etc.
Transaction Fees: Understand the fee structure of the trading platform and calculate transaction costs.
Four, Advanced Strategies
Technical Analysis Tools: Master technical analysis tools such as moving averages, RSI, MACD, etc., to assist trading decisions.
Stay Calm: Maintain calm and rationality during the investment and trading process, not swayed by market emotions.
Understand Regulatory Policies: Cryptocurrencies are affected by regulatory policies; understanding these policies is crucial to investment decisions.
Five, Position Management Techniques
Left Position Management: Buy in batches to average out costs, suitable for investors keen on bottom fishing.
Right Position Management: Gradually increase positions based on technical indicators and trends to ensure capturing maximum profits in an upward trend.
Six, Risk Reminders and Responses
Hackers and Scams: Stay vigilant and prevent various scam activities to ensure asset security.
Price Volatility: Cryptocurrency prices are highly volatile, so be mentally prepared and stay calm.
Self-Custody: Be cautious with self-custody of digital assets and ensure operational security.
Seven, Carefully Choose Trading Platforms
When choosing a cryptocurrency trading platform, be sure to ensure its legality and credibility. Check the platform's registration information, regulatory status, user reviews, etc., to avoid scams and fund security issues. At the same time, choose platforms with a large user base and good trading liquidity to ensure convenience in buying and selling cryptocurrencies.
Eight, Reasonable Diversification of Investments
When investing in cryptocurrencies, avoid concentrating all funds in one or a few coins. Properly diversifying investments can reduce risks and increase returns. Choose multiple coins to invest in based on your risk tolerance and investment goals to balance risk.
Nine, Trade High-Volatility Coins with Caution
The cryptocurrency market is highly volatile, and many coins can experience sharp price fluctuations. Beginners should carefully choose highly volatile coins when trading to avoid losses due to market fluctuations. Start with stable coins to gradually adapt to the market.
Ten, Always Pay Attention to Market Information
Newcomers need to constantly pay attention to market conditions and dynamics in the cryptocurrency market, understanding price trends, market trends, and other information. You can follow professional cryptocurrency media, social platforms, and predictions and opinions from market analysts to make more informed investment decisions.
Eleven, Protect Private Keys and Passwords
The security of cryptocurrencies primarily relies on the protection of private keys and passwords. Newcomers must properly safeguard their private keys and passwords and not disclose them to others. It is recommended to use hardware wallets or cold wallets to store cryptocurrencies to reduce the risk of theft.
Twelve, Cautious Participation in ICOs
ICO (Initial Coin Offering) is a way to raise funds but comes with significant risks. Newcomers should carefully review project backgrounds, team strength, white papers, etc., to avoid investing in unclear projects that may lead to losses.
Thirteen, Learning Market Analysis
The cryptocurrency market has strong uncertainty; prices are influenced by various factors. Newcomers need to learn basic market analysis methods, such as technical indicators and chart analysis, to improve their judgment and trading skills. At the same time, pay attention to market dynamics and policy changes to adjust investment strategies in a timely manner.
Fourteen, Stay Calm and Rational
In the cryptocurrency market, it is easy to be influenced by market volatility and emotions. Newcomers need to remain calm and rational, avoiding blindly following trends or impulsive trading. Stick to a long-term investment philosophy, operate steadily, and avoid losses due to emotional trading.
In summary, newcomers to the crypto space need to pay attention to the points mentioned above, continuously learn and accumulate experience to achieve stable returns in the cryptocurrency market.
Fifteen, Cryptocurrency: Freedom and Risk Coexist
In the digital world, cryptocurrencies not only bring us unprecedented financial freedom but also, with their unique decentralized characteristics, such as smart contracts, grant us greater financial flexibility and control. However, navigating through this unknown ocean comes with its own risks. Today, let's discuss the five major risks that cryptocurrency beginners must be aware of.
Five Major Risks, Are You Ready?
1️⃣ Hackers and Scams
One of the biggest challenges in the blockchain industry. In 2023, the industry suffered losses of up to $1.9 billion due to hacking.
Countermeasures: Maintain network security, never share private keys or click on suspicious links.
2️⃣ Price Volatility
Cryptocurrencies inherently come with severe volatility; investment must be cautious.
Countermeasures: Choose highly liquid, large market cap crypto assets, or consider stablecoins.
3️⃣ Regulatory Issues
The regulatory environment for cryptocurrencies is complex, with varying standards across countries.
Countermeasures: Understand the legal regulations in your country and ensure legal trading.
4️⃣ Self-Custody
Complete control of assets, but also accompanied by risks.
Countermeasures: Securely back up seed phrases, avoid online storage, carefully check transaction information, and consider purchasing hardware wallets.
5️⃣ Blindly Following Trends
Market manipulation and influencers are everywhere; stay clear-headed.
Countermeasures: Think independently, conduct your own research, and be wary of market manipulation.
Sixteen, Frequently Asked Questions
Is cryptocurrency a high-risk asset? Yes, cryptocurrencies and related digital assets are typically considered a high-risk asset class. Investors need to carefully assess their risk tolerance and investment goals.
What is the safest cryptocurrency?
In terms of price volatility, stablecoins (like USDT and USDC) are generally considered relatively 'safe' because they are pegged to the value of fiat currencies like the US dollar. However, this does not mean they are entirely risk-free.
What Are the Risks of Cryptocurrencies?
The risks of cryptocurrencies include price volatility, hacking, scams, market manipulation, and the unexpected loss of assets during self-protection. Investors need to fully understand these risks and take appropriate risk management measures.
Why Is Understanding Risks Important?
The crypto space is filled with opportunities and challenges. Understanding risks is about protecting yourself and preparing adequately for future investment paths. Let's navigate safely and wisely in the digital world!
Investing in cryptocurrencies is not just about pursuing profits; it is also about exploring and embracing new technologies and ideas. May we all find our treasures in this field full of infinite possibilities! Exploring the world of cryptocurrencies is filled with opportunities but also accompanied by risks. By mastering the basics, following investment strategies, and effectively managing risks, you will be able to achieve success in the cryptocurrency market. Remember, investment requires caution and do not follow trends blindly.
The 24 Trading Rules Summarized from Over 10 Years of Cryptocurrency Trading - Strongly Recommend to Collect
1. Capital Allocation: Divide capital into ten parts to ensure that the risk of a single trade does not exceed one-tenth of the total capital.
2. Set Stop-Loss: Set a stop-loss point immediately when opening a position to protect investments from adverse market fluctuations.
3. Avoid Over-Trading: Over-trading violates capital management principles and should be avoided.
4. Protect Floating Profits: When floating profits exceed three basis points, set protective stop-loss around the opening price to ensure that the principal is not eroded.
5. Follow the Trend: Avoid participating in trading when the market trend is uncertain.
6. Wait-and-See Attitude: When in doubt, choose to wait or exit the market.
7. Choose Liquid Stocks: Trade actively traded stocks, avoiding stocks with insufficient liquidity.
8. Risk Diversification: Diversify risk by trading multiple stocks instead of concentrating investment.
9. Order Types: Flexibly use market orders and limit orders to adapt to market changes.
10. Reason for Holding: Unless there is sufficient reason, do not arbitrarily end a trade; consider using trailing stops to protect profits.
11. Profit Accumulation: When trading goes smoothly, transfer part of the profits to a reserve account for emergencies.
12. Avoid Temptation from Positive and Negative News: Do not overly trust the news that is disseminated, leading to your own plans being affected.
13. Avoid Cost Averaging: Avoid averaging down by increasing your position, as this can be the biggest mistake traders make.
14. Patiently Wait: Avoid rushing into the market out of impatience or exiting too early due to a lack of patience.
15. Avoid Small Profits and Big Losses: In trading, avoid overlooking potential large losses due to small profits.
16. Stop-Loss Discipline: Once a stop-loss point is set, it should not be arbitrarily canceled unless there is sufficient reason.
17. Reduce Trading Frequency: Avoid frequent entries and exits from the market, as this may lead to unnecessary trading costs and risks.
18. Trading Consistency: The willingness to go long or short should align with the market trend; this is key to profitability.
19. Avoid Emotional Trading: Do not buy simply because the price seems low or sell short because the price is high; make decisions based on market analysis.
20. Pyramid Adding Strategy: Appropriately add positions when prices break through resistance levels or drop below support levels.
21. Coin Selection: Choose small-cap stocks when going long and large-cap stocks when going short.
22. Avoid Erroneous Hedging: If the coins you hold start to decline, you should stop-loss and exit rather than hedge by shorting.
23. Trading Plan: Do not arbitrarily change your trading plan without sufficient reason.
24. Position Management: After consecutive profits, do not arbitrarily increase your position; maintain consistent risk management discipline.
As an experienced trader, I advise every trader to internalize these rules in their hearts, not only to remember them but also to practice, experience, and reflect on them in daily trading. Through this method, we can find our way amid market uncertainties and achieve long-term stable profits.
Trading is not about getting rich overnight, but about reasonable profits that can sustain long-term, stable, and high-probability wealth acquisition.
Professionals create value, and details determine success or failure. If you feel helpless or confused while trading in the crypto space, I hope my sharing can provide you with some inspiration and help!
The Key Point is Coming:
Next, I will lead fans to position a few coins expected to rise by over 60%
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