From earning 500,000 to going bankrupt overnight, some advice for new and old investors!

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Assuming the current price of Bitcoin is 10,000, the investor uses 5,000 capital and builds a position with 10x leverage. When the price of Bitcoin rises by 10% to 11,000, the investor gains 5,000 in profit. At this point, the rolling position operation is to close the original position and reinvest the profit along with the capital, totaling 10,000. If Bitcoin continues to rise by 10% to 12,000, the investor's total with both capital and profit is 20,000. Compared to adding to a floating profit, rolling positions achieve higher profits through continuous closing and reopening of positions. #币圈

Further analysis of the profit mechanism of rolling positions reveals that rolling positions have the characteristic of exponential growth. Unlike linear growth, exponential growth may be slow at the beginning, but over time, the growth rate will accelerate. This is like the trajectory of technological development, from the use of fire to the mastery of electricity, and then to the popularity of the internet; each breakthrough in technology has led to rapid development in human society. Similarly, the rolling position strategy achieves exponential profit growth through continuous position rolling. #币圈暴富

However, the high returns of rolling positions come with high risks. Since rolling positions involve frequent position adjustments and closing operations, investors need to have a high risk tolerance and keen market insight. In addition, the rolling position strategy is affected by various factors such as market volatility, leverage ratio, and transaction costs. If operated improperly, it can lead to significant losses. #比特币

Therefore, for investors, choosing an investment strategy that suits them is crucial. Although rolling positions have attractive profit potential, they are not suitable for all investors. For small capital investors, it is even more important to approach the rolling position strategy with caution to avoid excessive risk. On the contrary, spot investing, due to its compounding characteristics, is often considered a more stable investment method. Investors can choose an investment strategy that suits them based on their own risk tolerance and investment goals. #鲍威尔发言

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