👗First, see the table
1000 - fluctuating between 20 - 50 yuan
10000 - fluctuating between 200 - 500 yuan
50000 - fluctuating between 1000 - 2500 yuan
It's okay if the capital is small; if the capital is large, it could be equivalent to a month's salary in a small third-tier city.
✨🍓All assets are exposed to daily fluctuations of 2%-5%, which is very risky
🫧🍀Strategy analysis:
🌿1. Long-term holding (HODL)
Applicable audience: Those who believe in long-term growth of Bitcoin/specific cryptocurrencies and do not want to trade frequently.
Ignore short-term fluctuations, wait for a major bull market cycle (like after Bitcoin halving)
Dollar-cost averaging (DCA): Buy in batches, lower the average price, reduce the impact of short-term fluctuations.
Disadvantages:
❌ Short-term may endure significant drawdowns (e.g., -30% or more)
🌿2. Swing trading
Applicable audience: Those who can tolerate risks and have some technical analysis skills
Buy low and sell high: Buy at support levels (such as EMA20, Fibonacci~), sell at resistance levels. Requires technical support for trading
Take profit and stop loss: For example, 5% take profit, 3% stop loss, control the loss per trade.
Batch operations: Do not go all-in at once, avoid big losses from wrong judgments
Disadvantages:
❌ Requires constant monitoring, consumes energy, and is easily influenced by emotions. Incorrect judgments may lead to consecutive losses.
🌿3. Hedging strategies (reduce risk)
Applicable audience: Those who want to reduce volatility risk but still want to hold positions
Hedging: Hold long positions in spot while opening short positions to offset some downside risk
Disadvantages:
❌ Hedging costs may erode profits
🌿4. Diversification
Allocate different assets:
BTC (40%) + ETH (30%) + Stablecoins (20%) + Altcoins (10%)
Disadvantages:
❌ May miss out on opportunities for a single cryptocurrency to skyrocket
🐤Not investment advice:
Beginners/office workers → HODL + Dollar-cost averaging (avoid frequent operations that lead to losses).
Experienced traders → Swing trading + Strict stop-loss (5% fluctuations can be used for short-term trades).
Conservative investors → Hedging + Diversification (reduce extreme risks).
⚠ Important reminder:
Do not go all-in on cryptocurrencies; invest only what you can afford to lose.
Use leverage cautiously, a 5% fluctuation may lead to liquidation of high-leverage positions.
Emotional management > Technical analysis, avoid FOMO (fear of missing out).
💖If you are a beginner, you can start with a small amount (like 10%) to practice swing trading, and hold the rest as HODL, adjusting your strategy once you gain proficiency.
