Rolling Warehouse: A Knife's Edge of Blood or a Wealth Code?
In the cryptocurrency circle, there is a legend of 'getting rich through rolling warehouses':
In 2018, someone used 20x leverage to bet on EOS, rolling from $2 to $2.1, reinvesting profits, doubling positions, and achieving financial freedom in one market surge. During the BCH fork wars, rolling warehouse players were said to have 'doubled in three days, tenfold in ten days,' creating a myth of wealth.
But on the other side of rolling warehouses is a field of corpses.
I have seen too many 'gamblers': the first five times they rolled warehouses, they made a fortune, but on the sixth time, the market reversed, and both profits and principal were wiped out overnight. Some even used 'borrowed funds' to roll warehouses, becoming heavily indebted after liquidation, completely exiting the market.
Rolling Warehouse: A Wealth Game Played with One's Life
Mechanism: Use leverage to amplify the initial position to earn 20% → reinvest profits → earn another 20% → continue to increase... Theoretical returns explode exponentially, but any wrong judgment will swallow all profits.
Risk: One mistake, and under 20x leverage, a 5% fluctuation leads to liquidation. Rolling three times yields an 8x return; rolling five times yields a 32x return— but if the sixth judgment is wrong, it goes straight to zero.
Psychological Trap: Greed devours reason. After consecutive profits, one may develop a 'gambling god illusion,' ignoring risk control. The fantasy of 'rolling one more time before stopping' is the most common monologue before liquidation.
Rolling Warehouse Survival Guide: Discipline on the Edge of a Knife
Limit the number of rolls to a maximum of 2-3 times, and take profits when available.
Historical data shows: Rolling more than 5 times results in an over 80% probability of going to zero.
Strict stop-loss and profit-taking lines: Lock in profits immediately when single roll profits reach 30%-50%.
Stop-loss line: Leave the market unconditionally if the principal loss exceeds 10%, and never use 'profits' to average down (that’s a gambler's behavior). Only bet on 'certain market conditions' such as BTC halving, ETF approvals, and avoid rolling in a volatile market.
Never use living expenses/borrowed funds. Rolling warehouses are essentially 'option games,' and one should only participate with 'affordable' money.
Stop-loss is more important than courage.
Rolling warehouses can lead to wealth, but they are more likely to lead to death. This market is never short of lucky ones who 'bet right once'; what is lacking are the veterans who have 'survived through three cycles of bull and bear.'
