Today I will introduce a simple and practical cryptocurrency trading strategy:
1. Diversify funds: Divide the funds on hand into five equal parts. For example, if you have 10,000 yuan, each part of the funds is 2,000 yuan.
2. First purchase: Use one part of the funds to buy a currency at the current price.
3. Add positions when the price drops: If the currency price drops by 10%, use another part of the funds to buy.
4. Sell when the price rises: When the currency price rises by 10%, sell one part.
5. Repeat the operation: Continue to repeat the above steps until the funds are used up or all currencies are sold.
The advantage of this strategy is that you can respond flexibly regardless of whether the currency price rises or falls. If the currency price falls, you can reduce the cost of holding the position by adding positions; if the currency price rises, you can get a 10% profit by selling. Suppose you have 100,000 yuan of funds, and use 20,000 yuan to buy and sell each time, and you can get 2,000 yuan of profit for each successful transaction.
However, this strategy also has some flaws. A 10% fluctuation is large, which may result in fewer trading opportunities and longer waiting time, which will affect the efficiency of fund use or the funds will be occupied in a certain currency for a long time.
In general, this is a stable strategy suitable for investors who are willing to wait for the right time and are not in a hurry to make a quick profit.
