1. How I Started with a Small Capital (Key Points!)
. Find places with large fluctuations to profit from the price difference, choose markets that trade 24 hours and have frequent price rises and falls (like the price differences of Bitcoin on different platforms), just like moving Coke between different supermarkets to make a profit; more fluctuations mean more opportunities!
. Make 1-2% profit each time and exit without using leverage! Make 1-2% profit each time and stop; rely on high-frequency trading + compound interest to amplify returns. For example, earn 2 from 100, then earn 2 from 102, slowly rolling the snowball!
. Use tools to automatically monitor the market, no need for manual tracking! There are now free tools that can automatically monitor price differences, and when the target is reached, they automatically buy and sell; just spend half an hour a day to set it up!
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2. Insights on Turning 2000 Yuan into 110,000
Assumption: Platform A sells Bitcoin for 20,000 dollars, platform B sells for 20,200 dollars (price difference of 200 dollars)
❶ Simultaneously buy and sell using 2000 Yuan (about 300 dollars), buy 0.015 coins on A, and short on platform B (predicting B will drop).
❷ Sell when the price difference expands; when the difference reaches 300 dollars, sell: ✅ Earn 4.5 dollars on platform A ✅ Earn 1.5 dollars on platform B ✨ Earn 6 dollars in total, with a return of 2% (better than Yu'e Bao!)
❸ Compound profits, trading 3 times a day, 5 days a week (win rate 70%): weekly return 21%, monthly return 114%, approximately 112,000 in 3 months! (Ideal situation; in reality, be cautious of risks!)
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3. 4 Major Pitfalls to Avoid (Lessons Learned!)
⚠ Only choose large platforms, don’t go all in; use major platforms like Binance, Coinbase, etc.; don’t place more than 50% of your capital on a single platform; in case something happens, at least leave half behind!
⚠ Don’t be greedy! Withdraw when the price difference exceeds 0.8%; if it's below 0.3%, take a break; greed can easily cause you to lose back your earnings!
⚠ Set a stop-loss line: the maximum loss per day is 5%; if you lose 5% in a day, stop trading! Keep a record of each transaction in a table; don’t trade emotionally (human weaknesses lead to the most losses!) Don’t be a "retail investor"!
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Lastly, let's be honest
Behind the journey from 2000 to 110,000 is hundreds of thousands of trial and error + strict discipline.
Remember:
✅ Preserving capital is 100 times more important than making quick money
✅ Steady small profits are more realistic than taking a gamble
✅ Arbitrage requires both skill and effort; don’t expect to win without effort!
Newbies are advised to start with small capital to practice, gradually accumulating experience and profits!