Liang Xi's story:

Liang Xi is an internet celebrity in the cryptocurrency circle. He used high leverage and short-term operations in the cryptocurrency market to make tens of millions of yuan in a short period of time with a principal of 1,000 yuan. However, in subsequent transactions, he made mistakes in judgment and suffered losses. Not only did he lose all the money he had earned before, but he also fell into debt. He once borrowed money under his real name and ended up with a debt of tens of millions, facing huge financial pressure and public controversy.

Here are some common BTC contract trading strategies: (Part 1)

I. Trend tracking strategy

1. Moving average crossover strategy:

● Use moving averages of different periods, such as the 5-day moving average and the 20-day moving average. When the short-term moving average crosses the long-term moving average upward, it is considered a buy signal to go long on BTC contracts; when the short-term moving average crosses the long-term moving average downward, it is considered a sell signal to go short on BTC contracts.

● Advantages: Simple and easy to understand, able to capture trends well. Disadvantages: More false signals may be generated in volatile markets.

2. Trend line breakthrough strategy:

● Draw a trend line on the BTC price chart. When the price breaks through the rising trend line, go short on the contract; when the price breaks through the falling trend line, go long on the contract.

● Advantages: The trend change can be judged intuitively. Disadvantages: The drawing of trend lines is somewhat subjective, and there may be false breakthroughs.

2. Mean reversion strategy

1. Bollinger Band Strategy:

● Observe the position of BTC price in the Bollinger Band. When the price is close to the upper track of the Bollinger Band, short the contract, and expect the price to return to the middle track; when the price is close to the lower track of the Bollinger Band, long the contract, and expect the price to rebound to the middle track.

● Advantages: More effective in volatile markets. Disadvantages: Large fluctuations may be missed in trending markets.

2. Relative Strength Index (RSI) Strategy:

● When the RSI indicator exceeds 70, it is considered to be in an overbought state and short the contract; when the RSI indicator is below 30, it is considered to be in an oversold state and long the contract.

● Advantages: It can help determine the overbought and oversold conditions of the market. Disadvantages: The RSI indicator may stay in the overbought and oversold areas for a long time, resulting in delayed trading signals.

The main reasons why Liang Xi lost his assets are as follows:

1. Wrong market judgment:

● Misjudgment of direction in the bull market: Bitcoin rose again in the second half of 2021, but Liang Xi misjudged the direction, which was completely opposite to his previous short-selling profit during the 519 crash in 2020. When the market trend changed, he did not adjust his strategy in time, resulting in serious losses and a significant reduction in the assets accumulated before.

● Continuous high-leverage trading strategy: Liang Xi is accustomed to using high leverage for trading, which is extremely risky when the market fluctuates greatly. Although high leverage can bring huge profits when the market is in line with expectations, once the market trend is contrary to expectations, the losses will be multiplied. For example, in some unstable periods, his high-leverage operations caused the losses to continue to increase.

2. Overconfidence and greed:

● Failure to stop in time after making a profit: During the 519 crash in 2020, Liang Xi made a huge fortune by shorting, and the asset accumulation was considerable at the highest point. However, he was so overwhelmed by his victory that he did not cash in his profits at the right time. Instead, he continued to trade frequently in the market, overconfidently believing that he could continue to make profits. As a result, he continued to lose money in subsequent transactions.

● Anxious to recover: After experiencing losses, Liang Xi did not calmly analyze and summarize his experience and lessons. Instead, he was eager to recover his losses, continuously increasing his investment and even borrowing money to trade. This eagerness to recover made his trading decisions even more irrational and fell into a vicious cycle. $BTC

The story of Shenyu:

• Shenyu's real name is Mao Shixing, and he is a well-known figure in the cryptocurrency circle. In 2011, when he was still a sophomore at Beijing University of Chemical Technology, he accidentally saw news about Bitcoin and became very interested in it, and began to study it in depth. At first, he chose mining. In early 2012, he bought several graphics card mining machines, and deployed more than 20 mining machines at the end of the year. Soon, he sold the coins he mined and cashed in more than 1 million.

• In 2013, he decided to devote himself to mining when he was just in his first year of graduate school, so he took a leave of absence and founded China's first Bitcoin mining pool - f2pool. He innovatively adopted a miner-friendly pps distribution model, which attracted a large number of miners. This year, the price of Bitcoin rose to more than 700 US dollars, and his account increased by several million yuan every day, and soon his wealth reached 100 million. Later, he also got involved in the Ethereum mining pool and developed into the field of digital wallets, becoming a celebrity in the cryptocurrency circle. $BTC

Hui Yi incident:

On June 5, 2019, Hui Yi, the founder of BitEasy Huaguo Finance, lost 2,000 bitcoins, equivalent to more than 100 million yuan, due to a suspected 100x leverage shorting of bitcoin. The huge loss overwhelmed him and he eventually hanged himself in his villa. Hui Yi graduated from the University of Science and Technology of China and held important positions in many well-known companies. He had a keen sense of the financial market. He decisively liquidated his positions when the Shanghai Composite Index was 4,800 points to avoid the stock market crash. After entering the P2P market, he also retired at a high position, but he encountered such a tragedy in the currency circle.

Family members must act within their means! !

Novice players' experience of liquidation:

In 2021, Xiao Wang, who had just graduated, invested all of the 40,000 yuan he borrowed and the 60,000 yuan his parents gave him to keep in Ethereum. He encountered a liquidation shortly after entering the market, and his 100,000 yuan was instantly wiped out. There is also Xiao Chen, who used his own savings of 30,000 yuan, plus 50,000 yuan borrowed from his family and 20,000 yuan in loans to invest in Dogecoin and Ethereum. Due to the continuous increase in leverage and operation against the market, he lost all his 100,000 yuan principal in just half a month of contact with the currency circle.

Whether you are doing spot or contract, you must strictly follow the market environment and don't operate recklessly! ! !

BTC Contract Strategy (Part 2)

III. Breakthrough Strategy

1. Box Breakthrough Strategy:

● Determine the box range of BTC price. When the price breaks through the upper edge of the box, go long on the contract; when the price breaks through the lower edge of the box, go short on the contract.

● Advantages: Capture large fluctuations in time when a breakthrough occurs. Disadvantages: False breakthroughs are common and need to be confirmed in combination with other indicators.

2. Key resistance and support breakthrough strategy:

● Find the key resistance and support levels of BTC price. When the price breaks through the resistance level, go long on the contract; when the price breaks through the support level, go short on the contract.

● Advantages: Capture important price turning points. Disadvantages: It is difficult to determine the accuracy of key resistance and support levels, and there is also the risk of false breakthroughs.

IV. Arbitrage Strategy

1. Cross-period arbitrage:

● Buy and sell BTC contracts with different expiration dates at the same time. When the price difference between the near-month contract and the far-month contract widens or narrows, close the position accordingly to obtain the price difference profit.

● Advantages: relatively low risk and relatively stable profit. Disadvantages: the arbitrage space may be small and requires in-depth understanding of the market.

2. Cross-market arbitrage:

● Use the price difference of BTC contracts on different trading platforms for arbitrage. Buy contracts on platforms with lower prices and sell contracts on platforms with higher prices, and close the position to make a profit when the price difference converges.

● Advantages: You can use the imbalance of the market to obtain profits. Disadvantages: You need to consider the transaction costs and the risk of capital transfer, and the price difference in the market may disappear quickly.

$PEOPLE people has always been a leading meme coin. When the big market comes, the launch priority of meme is higher than any copycat except BTC. If funds permit, it is recommended that large funds enter people!

Tomorrow, Monday, the weekly line will close and there will be a FTX repayment vote, CPI on Thursday, and PPI on Friday.
Currently, BTC is in a rebound from a sharp drop. This is the position of support and resistance conversion, which is very critical! Once it stands above 62,500, I think nothing can stop Bitcoin from taking off, because the next stop is 69,000.
$BTC

ong can enter the market at the current price and open a long position. If it falls below 0.302, stop loss. The first target is 0.35