When we first enter the cryptocurrency world, we often hear the phrase "One day in the cryptocurrency world is like ten years in the real world", which describes the rapid changes in the prices of various currencies in the cryptocurrency world. Compared with the trend of the stock market and futures market, which often takes a year, it only takes a week or a month in the cryptocurrency world. So the question is, how can we make a fortune in the ever-changing market?
In market investment, there is a big difference between large funds and small funds. A large fund with an annualized return of 10% may be equivalent to a worker working for ten years, while a small fund with an annualized return of 20% is just the cost of two meals. So we have to treat them differently, just like why Musk and Buffett are willing to buy government bonds, while Fu Haitang started out by playing futures. You can't just believe what traditional financial analysts and securities analysis experts say. For the sake of their reputation and the power behind them, they may not say what they want to hear, or they may just be the opposite indicator of stabilizing the leeks. What should we do?
We need to think about a few questions:
1 Why do I come to the cryptocurrency circle?
2. What are the pitfalls in the cryptocurrency circle?
3. Based on past experience and lessons, what should we do?
The following are suggestions for users with cash assets below 10 million. If it exceeds, please read other content.
I believe that many people have small capital. I also started from small capital and worked my way up step by step. So I will share with you some methods to make small capital big. They are divided into bull market and bear market.
Bull Market:
For copycat spot, you should speculate on new rather than old, you must have new concepts, don't speculate on old coins, new sectors will be driven by new funds, such as DEFI in 2020, low GAS public chain in 2021, Gamefi at the end of 2021, NFT in 2022, etc. Buy coins with small market value that have just started to gain popularity and have only increased by less than 30%. Start with split positions and pick out 3-5 potential varieties in the same track, with 50% of funds covering. If it rises, you can get 3-5 times and then exit; if it falls, it falls by 50%, continue to increase funds and lower the entry price.
Here our profit and loss ratio can be almost 1 to 5. This method is very useful in a bull market. We can make 3-5 times the profit and then run, or sell part of it after the profit is enough to cover the principal and save the principal to buy other currencies, and continue to hold the balance. Maybe, you will catch a coin that can increase by 100 times.
The worst result of this method is: losing most of the principal, that is, being firmly trapped. At this time, we must hold on to it, either to get back the principal or to zero. The best result is: 100 times the currency.
If the principal is 5,000, the first time is successful, the principal will be 20,000, the second time is successful, the principal will be 80,000, and the third time is successful, the principal will be 320,000. At this time, you can save some money, and then allocate some leading coins, and continue to play with small funds.
Of course, not every one you choose will be particularly accurate. At this time, we need to manage our positions. Remember, make dispersed purchases on the same track, and leave the market after making enough profit, leaving the balance to keep running.
As long as this method is strictly implemented, the probability of success is very high. If you encounter a bull market like that in 2021, it is possible to earn the first million in your life.
Bear Market:
Contract short selling, many people regard contracts as a scourge. In my opinion, it is just a tool. If used well, you can make a lot of money, but if used poorly, you will lose everything. So I suggest that people who are not self-disciplined should not look at this method, because you will lose everything sooner or later.
This method mainly deals with two types of coins. One is the kind of coins that are hyped but have no value, such as last year's World Cup, Santos, AC Milan, CHZ and other tokens. It's almost time, and the good news has landed. Generally, 1-3 months before the World Cup, find a high position to go short, the leverage is not higher than 2, and set a stop loss. Hold it tightly, the cycle is about half a month, and it should be no problem to make 2 times. For example, last year the Federal Reserve raised interest rates, BTC only needed to double the leverage in April after everyone knew the news of the rate hike, and it was very easy to make 2 times at the end of the year.
Many people play contracts hoping to get rich quickly, with large leverage, large positions, and no stop loss. This is not advisable because the essence of a contract is to use a small stop loss to bet on a big market. Short-term volatility is very high, and it is impossible to see the situation clearly. It's like an athlete playing football and you watching the game from a high position in the stands. Under the high-speed movement and changes, don't call the players fools, because we may be even more confused if we go up there.
The above methods require a good mentality and strict discipline, rather than holding on to losses and running away when you make a profit. They also require great patience. Since we have small capital, we need to wait quietly for the prey to appear. As long as we wait patiently for four or five opportunities, we will definitely be able to capture the prey.
If the capital is less than 50,000, there is no need to stock up on big stocks. There is no point. There are many ways to make a small amount of capital in this market, but it is not to learn trading today, futures tomorrow, and options the day after tomorrow. When you hear that others are making money in the primary market, you go to learn it again. When you make some money in a muddle, you think you are amazing. If you are not familiar with it, don't touch it first. Find a suitable one and learn it thoroughly. When you can make money, then learn other things. Don't cut off the funds outside the market, that is the source of our chance to turn around.
It takes both luck and strength to grow a small amount of capital, and it is also quite difficult. Don't just focus on the profit and ignore the principal. #币安合约锦标赛