In the cryptocurrency market, many investors harbor dreams of getting rich overnight and blindly follow trends, often ending up trapped at high prices and sinking into losses. As an experienced investor, I want to tell you that those who can achieve stable profits in the crypto space are not the speculators chasing short-term profits, but those who possess rational thinking and steady strategies. Today, I will share how to invest steadily in the crypto space, using rolling strategies and reasonable position management to achieve long-term stable profits.

I. The mindset for investing in cryptocurrencies: Control emotions and avoid greed

In the crypto space, successful trading relies not only on technical analysis but also on good emotional control. Many investors make irrational decisions during market fluctuations due to emotional volatility. For example, they impulsively chase higher prices when they see a significant rise in coin prices, and panic sell when they see prices drop. This emotional trading is one of the main reasons retail investors incur losses.

As an investor, you need to stay calm and rational. Especially when facing significant market fluctuations, you need to firmly uphold your investment strategy and avoid blindly chasing highs and cutting losses. Do not be influenced by short-term price fluctuations; instead, base your judgments on long-term market trends to rationally determine the timing of buying and selling.


II. Position Management: Reduce risk and ensure steady profits

Position management is one of the most important aspects of investing. Especially in the crypto space, where market volatility is severe, reasonable position management can help you retain funds during market corrections and quickly profit when the market rises. Here are my personal recommendations for position management:

1. Position management: reducing risk

The core principle of position management is to diversify risk and not invest all funds into one trade. If you have 30,000 USDT, you can allocate your funds as follows:

  • Divide the funds into three parts, each part being 10,000 USDT.

  • Use one part for each trade. Even if you incur losses, your overall funds will not be impacted.

  • Specific leverage settings: For major currencies (like Bitcoin), use no more than 10x leverage; for altcoins, leverage should not exceed 5x.


2. Operations of increasing and decreasing positions

When in profit, consider increasing your position. Especially when the market trend is clear and conditions are favorable, increasing your position can expand your gains. However, before adding to your position, ensure that your costs have been reduced to avoid blind increases leading to greater risks. One misconception to avoid is that unrealized gains are not a reason for unlimited position increases; it must be ensured that the market trend continues to develop favorably.


3. Set stop-loss and take-profit to avoid excessive greed

Setting stop-loss and take-profit is a basic operation that every investor needs to establish. If the stop-loss point is not set correctly, you may miss the opportunity to exit due to small fluctuations, resulting in significant losses; if the take-profit point is unreasonable, you may miss profits when the price reverses. A reasonable stop-loss and take-profit strategy can help you protect profits and avoid emotional interference from chasing highs and cutting losses.


III. Position Rolling Strategy: Capture the 'big opportunities' in the market

The rolling strategy achieves a compound effect by increasing positions in a major trend. Many investors misunderstand rolling as blindly increasing positions, but in fact, rolling is a method that emphasizes timing and strategy. It is only suitable for rolling when the market trend is clear and the signals are strong.


Three major applicable scenarios for rolling operations:

1. Choosing a direction after a long period of sideways movement: When the market enters a phase of sideways consolidation and price fluctuations narrow, it usually indicates that a breakthrough is forthcoming. At this time, if the market breaks through key support levels above or below, rolling operations can be conducted.

2. Corrections after significant rises in a bull market: Corrections in a bull market often present good buying opportunities. When a 20%-30% correction occurs after a significant rise, it is suitable to increase positions while waiting for the market to recover.

3. After breaking through key resistance levels: When the market breaks through long-term key resistance or support levels, it usually means that the price will enter a new upward cycle. At this time, rolling operations can yield significant returns.


Specific methods for rolling operations:

  • Adding positions with unrealized gains: If you have made unrealized gains after the market rises, you can consider increasing your position, but the premise is that you have reduced your holding costs to ensure minimal risk.

  • Base position + rolling operations: Divide the funds into two parts, keeping one part as a base position and the other part for high-selling and low-buying rolling operations. This way, you can not only reduce losses but also gain profits amid fluctuations.


IV. Risk Management: Stay calm amid volatility

In the cryptocurrency market, risk control is key to determining long-term profitability. The market's volatility is high, and rapid price fluctuations often harm investors' emotions, leading to wrong decisions. Therefore, maintaining a good risk control mechanism is essential.

1. Establishing risk tolerance:

  • Psychological preparation: The cryptocurrency market often experiences large pullbacks, so you must be psychologically prepared to endure a 30%-50% retracement. Only with a stable mindset can you maximize returns amid market fluctuations.

  • Diversified investment: Do not concentrate all funds in one transaction. Diversifying investments can effectively reduce the risks brought by fluctuations in a single market.

2. Avoid excessive speculation with high leverage:

The high leverage characteristics of the cryptocurrency market can easily lead investors to develop an overly speculative mindset, but high leverage hides massive risks. When engaging in leveraged trading, always act within your means, control the leverage ratio reasonably, and ensure that the risks are manageable.

V. Conclusion: Rational investment, stay away from the fantasy of 'getting rich quickly'

Through reasonable position management, rolling strategies, stop-loss and take-profit settings, and market trend analysis, you can achieve stable profits in the cryptocurrency market. However, remember that the crypto space is not a place for overnight wealth. Investors should remain rational, avoid blindly chasing short-term profits, and focus on long-term planning. The high volatility and short-term temptations of the market may lead you to lose your rationality, but only by maintaining a calm mindset and scientific investment methods can you progress steadily in this turbulent market.


I am Yan Ge, and the above content is for reference only and does not constitute any investment advice. If you find it helpful, feel free to follow me, and let's explore more opportunities in the crypto space together, invest steadily, and share more valuable insights.