8 years of accumulated wisdom in the cryptocurrency space~ Practical strategies for beginners

I want to share with everyone a very practical cryptocurrency strategy that I have spent a lot of effort to obtain. It is very useful, and I can't help but share it with you. I suggest (like + bookmark) so you won't lose it later.

Here, I'll use contracts as an example:

First, if the cryptocurrency you choose to play with is something like ETH, which has a starting purchase price of 20 USD, then you need to prepare at least 8 USD as your principal because you need to open a position in a leveraged manner.

Step 1: You spend 1 USD to open a 25x leverage position, placing an order of 25 USD. The entry point can be arbitrary, no requirements.

Step 2: Check your liquidation price, then place an order 1.5 USD higher than your liquidation price and double the value of your last order. For example, if your last order was 25 USD, then this time you should use 2 USD to open a 50 USD position. What next? If you can calculate the new liquidation price after opening a new order, you can place a third order, using 4 USD to place a 100 USD order, similarly 1.5 USD higher than the liquidation price because you are using 25x leverage, which means that when the market price drops by about 4%, you will be liquidated. Therefore, opening positions close to the liquidation price can help avoid liquidation, and because your order size is twice that of the previous one, it lowers your average price, meaning that as long as there is a slight rebound, you can break even.

The theoretical pressure resistance capability of this strategy is based on your principal, and of course, I am still using 8 USD as an example. In the case of 8 USD, you can increase your position twice; considering the first position, theoretically, you can withstand a 12% increase before liquidation. Of course, you can set a stop-loss point. My suggestion is to set the stop-loss at 98% of the price after the third position increase, meaning if it drops 2% after the third position increase, immediately stop loss.

I have used this strategy before when I had 2 USD, and it works very well when combined with technical analysis. When the market trend arrives, you don’t have to hold the position for too long; instead, you can increase your position due to the drop, and finally profit a lot during the rebound. However, if you do not combine it with technical analysis, the process of holding your position can become very painful. After all, the cryptocurrency world does not lack opportunities for sudden wealth; what it lacks is longevity.

Lastly, I still advise everyone: there are risks in the cryptocurrency space, so be cautious when entering.