If you are currently at a loss, you must take a good look at the following content. This is a concise yet very practical cryptocurrency trading strategy:
1. Divide your available funds into five equal parts. For example, if you have 10,000, divide it into five parts and use 2,000 for each trade.
2. Use one part of the funds to buy a cryptocurrency at the current price.
3. If the price of the cryptocurrency drops by 10%, buy another part.
4. When the price of the cryptocurrency rises by 10%, sell one part.
5. Repeat the above steps until all funds are used up or all cryptocurrencies are sold.
With this strategy, once you buy in, you need not worry even if the price drops, because we will continue to buy when the price drops. In fact, if all five parts of the funds are used up, the price has likely dropped by at least 50%. Unless there is a massive market crash, the price will not drop that quickly.
From a profit perspective, each time you sell, the funds can bring a profit of 10%. For example, with a total fund of 100,000, if you use 20,000 each time, you will earn 2,000 in profit each time you sell.
However, this strategy also has certain problems. A 10% fluctuation range is relatively large, which may make trades not easy to execute, thus requiring a longer wait time. This can affect the efficiency of fund usage, as funds may remain idle for a long time or be occupied by individual cryptocurrencies.
However, this problem can be solved by reducing the fluctuation range. For example, you can choose to buy more stable cryptocurrencies and invest in Binance financial products when funds are idle. This way, you can earn additional returns while waiting for price fluctuations.