I have been trading cryptocurrencies for over ten years, from liquidations to achieving financial freedom today, supporting my family through trading. In 2024, my capital multiplied by 50 times, and if it weren’t for two withdrawals to buy houses in between, it should have been 85 times.
Today, I will share my trading strategies and insights with friends in the crypto space.
There is a saying, standing on the shoulders of giants can save you ten years of struggle.
At the end of the article, I will also discuss the most important practical skills.
For those who are destined to see this and want to improve their crypto skills, be sure to read more and study seriously; I recommend saving it!
The secret for ordinary people aged 20-30 to earn millions in cryptocurrency trading.
This article covers the essence of my ten years of trading experience, from basic skills to core strategies. It is definitely a must-read for beginners.
All are practical insights, especially recommended for those with weak foundations. Next, we will delve into some key content:
Methods for small capital accumulation and turnaround
High capital practical operation for stable profits.
Core logic of digital currency investment.
Deeply understand from the fan circle that there are many ordinary people, even students, in the community who are eager to invest for profit. However, many do not truly understand how to invest in this field.
First, it must be clear that digital currency investment is financial investment. Our goal is continuous profitability and achieving economic doubling within a certain period. If you always expect to get rich overnight, watching the ups and downs all day, it’s no different from gambling.
Besides waiting for opportunities, trading also requires the ability to identify the size of opportunities. You cannot always hold a light position, nor can you always hold a heavy position. You can test with small positions at ordinary times, and when a big opportunity arises, then increase your position.
For example, rolling positions + this is a strategy that can only be operated when big opportunities arise. You cannot operate frequently; missing one time is okay because you only need to succeed a few times in a lifetime to go from zero to millions, or even tens of millions, enough for an ordinary person to join the ranks of the wealthy.
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Rolling positions, applicable, small to medium capital.
Suppose today you only have 1,000 dollars, and Bitcoin is currently worth 30,000 dollars. You believe Bitcoin is about to rise. If you buy in with 1,000 dollars, and it rises to 36,000 dollars, you earn 200 dollars. Because you only used 1,000 dollars, the doubling of the price means you earned 200 dollars.
Occasionally earning some small money with stable bloggers is fine, but if you want to get rich quickly, then you need to consider contracts.
Suppose you also believe Bitcoin will rise by 20%*5; your 1,000 dollars might become 1,000 dollars.
However, contracts are not something to play with casually. There are methods for small bets to make big gains.
In fact, rolling positions only requires attention to these points:
1: Enough patience; the profits from rolling positions are huge. As long as you can succeed a few times, you can earn at least tens of millions or even hundreds of millions. Therefore, you should not roll positions easily; find high-certainty opportunities.
2: Opportunities in certainty refer to when the price experiences a sharp drop and then continues to oscillate within a certain range before breaking upwards. At this time, the probability of following the trend is very high, and one should enter at the point where the trend reverses.
3: Have patience, wait for opportunities, even if there is only one opportunity in a month or a few months, once the opportunity arises, seize it.
▼ Rolling position risk
When it comes to rolling position strategies, many people feel there is risk. In fact, I tell you, the risk is very low, much lower than the risk of playing futures.
Suppose you only have 50,000 and want to start with this capital. First, this 50,000 should be your profit. If you are still in a loss, do not continue.
If you enter Bitcoin at a price of 10,000, set 10x leverage+, use a cross margin mode, and only open a position of 10%, it's equivalent to using only 5,000 as margin, which actually equals 1x leverage. Set a 2% stop loss; if you hit the stop loss, you will only lose 2%, which means a loss of 1,000 dollars. How do those who get liquidated get liquidated? Even if you are liquidated, at most you only lose 5,000, not everything.
Suppose Bitcoin rises to 11,000; you continue to open 10% of your total capital, also setting a 2% stop loss. If you hit the stop loss, you can still earn 8%; where is the risk? Isn’t it said that the risk is very high? By analogy.
If Bitcoin rises to 15,000, and you successfully increase your position, in this wave of 50% market movement, you should earn around 200,000. If you seize such opportunities twice, that’s about 1 million.
There is fundamentally no compound interest; 100 times is achieved through two 10 times, three 5 times, and four 3 times gains, not through daily or monthly 10% or 20% compounding, which is unrealistic.
This article not only contains operational logic but also embodies the core internal skills of trading—position management. As long as you understand position management, it is basically impossible to lose everything.
This is just an example, the general idea is like this. The specific details still need to be thought through by yourself.
The concept of rolling positions itself is not risky; it not only has no risk but is also one of the most correct thoughts in futures trading. The risk lies in leverage.
10 times leverage can roll, 1 time is also possible; I generally use two to three times. If you seize two opportunities, isn’t that the same as dozens of times of returns? If not, you can use 0.几 times; what does that have to do with rolling positions? This is actually a matter of your own choice of leverage. I have never said you should operate with high leverage.
Moreover, I have always emphasized that in the crypto space, only invest one-fifth of your money and only one-tenth of your spot funds to play futures. At this time, the funds for futures only account for 2% of your total capital, and futures should only use two to three times leverage, and only play Bitcoin. This can be said to reduce risk to a very low level.
Would you feel hurt if you lost 200 out of 10,000?
In general, a small bet for a big gain, endure loneliness, wait for opportunities, and learn position management. Only if you are not a star, will you always have opportunities. Opportunities are for those who think. Relying purely on luck, whatever you earn will be returned, ultimately back to the starting point.
Many people have misconceptions about trading, such as thinking that small capital should engage in short-term trading to grow funds. This is a complete misconception. This kind of thinking attempts to exchange time for space, trying to get rich overnight. Small capital should focus on medium to long-term trading to achieve greater returns. Remember, the smaller the capital, the more one should aim for long-term investments, leveraging compound interest to grow, rather than just aiming for meager short-term profits.
First, honestly accumulate coins, hold onto spot for 3-10 years. Accumulate the right targets. There is no one who cannot become affluent. What are the best targets in the crypto space? Anyone in the crypto community knows them, no need to choose.
Second, when you have a certain amount of capital.
After having a certain amount of capital, we indeed touch contracts less, because I fear you can't help but want to earn a billion. This idea is good but also very dangerous. Remember, we only use the money we earned to make money and pursue stability. Stability is not an absolute 100%, but rather our overall profitability over a period of time.
This is spot, capital management.
Capital management
Trading is not filled with risks; risk can be mitigated through capital management. For example, I have a futures account with 200,000 dollars, and a spot account ranging from 300,000 to over 1,000,000 dollars. If there are many opportunities, I will invest more, and if there are no opportunities, I will invest less.
I am lucky to earn over 10 million RMB in a year, which is more than enough. In unfavorable circumstances, the futures account may get liquidated, but it doesn’t matter; the profits from the spot account can make up for the losses in the futures account. If you lost, would you really not earn a penny in the spot account over a year? Our total capital is already so much; it’s impossible not to earn even that little money.
You can make no money, but you cannot lose money. So I haven't been liquidated in a long time, and I often withdraw a quarter or one-fifth of my profits for safekeeping, even if I get liquidated, I still have some profits retained.
As an ordinary person, my advice is to use one-tenth of your spot position to play futures. For example, if you have 300,000, use 30,000 to play. If you lose, recover with the profits from the spot. If you have explored ten or eight times but still haven’t found the way, then don’t play anymore; this field isn’t suitable for you.
Core logic.
When you first enter the crypto space, it’s best to see how those influential bloggers analyze the K-line in their live streams, such as engulfing patterns, morning star formations, etc.
This content attracts many newcomers, but in reality, the proportion of individual investment in the crypto market's technical aspects is not large; understanding it is sufficient as it cannot influence the rise and fall of coin prices (of course, unless you are a whale, and even if your skills are exceptional, can you surpass a whale?).
Are you a financial talent with a monthly salary of over 100,000?)
