In the enchanting world of cryptocurrency, tales of wealth are never-ending. You may have heard of someone who turned a small amount of capital into a fortune in a short time, going from broke to worth millions or even tens of millions. Thus, people with dreams of overnight riches dive into the cryptocurrency market with their 1,000 yuan, hoping to replicate those legendary stories and achieve a stunning turnaround from 1,000 to 1 million. But the harsh reality is that it is much more difficult than expected. Next, let's explore some common investment avenues to see where the challenges lie in achieving this goal.
Betting on meme coins: a once-in-a-thousand-years opportunity
Let's first discuss the path of betting on meme coins, such as Shiba Inu from the last bull market and the current Dogecoin. Taking Dogecoin as an example, its current market value is less than 50 billion dollars.
Let’s do the math: turning 1,000 into 1 million means a 1,000-fold increase. If you want to buy Dogecoin and reach 1 million, you need to buy when Dogecoin's market value is 50 million dollars. Currently, Dogecoin is priced below 0.5, meaning the buying price needs to be at 0.0005. In 2021, the lowest price for Dogecoin was 0.00244; holding from that time until now would yield a 200-fold return. This means that an investment of 1,000 yuan back then would now be worth 200,000.
Such opportunities are incredibly rare, like a once-in-a-thousand-years event. Moreover, you must keep an eye on the market value of meme coins; if the current market value is already absurdly high, do not participate. For well-known meme coins like Dogecoin, their market value may be a ceiling that other meme coins cannot surpass. You need to calculate whether there is still a 1,000-fold growth potential; if not, then you are basically out of luck in terms of your wealth dreams.
Contract trading: a high-risk game of life and death
Now let's talk about contract trading, which can be described as a life-and-death gamble; unless you have no other choice, do not try it lightly. However, if you are determined to take on the challenge, there is a seemingly reasonable path here.
For example, the trend trading strategy. Taking Dogecoin's current price of 0.45 as an example, if it can rise to 1.35, that is three times. If you buy spot without leverage at 1,000 yuan and sell at 1.35, you would earn 2,000 yuan, bringing your total assets to 3,000 yuan, which is hardly worth mentioning. So, leverage must be added; how much is appropriate? Let's say 10 times, after all, futures are generally about 10 times leverage.
Assuming the price rises continuously after you buy, if you buy 1,000 yuan at 0.45 and sell at 1.35, how much can you earn? 1,000 × 10 times × 300% increase, the total assets become 30,000, earning 29,000. If you use the rolling strategy, as long as there is a profit, you continue to add to your position with the profit. Similarly, using 10x leverage, buying 1,000 yuan at 0.45 and selling at 1.35, how much can you earn? The answer is 2.896 million!
Because 0.45 rising to 1.35, calculated using compound interest, only requires 11.5 instances of a 10% increase. Using 10x leverage, a 10% increase doubles your assets; 1,000 becomes 2,000, then use 2,000 as the principal to continue opening positions. After another 10% increase, the assets become 4,000, and so on. After 11.5 increases, the assets would appreciate to 2,896,309.
However, this method carries extreme risks. Because of continuously adding to your position with unrealized profits, the liquidation price is also the forced liquidation price, which is always a drawdown of less than 10%. If you improperly add to your position during an uptrend, raising your cost, if Dogecoin retraces by 10%, you could instantly get liquidated, losing everything. Therefore, if you want to take this path, you should at least learn basic market judgment techniques, but this is easier said than done; many people struggle to accurately grasp market trends while learning technical analysis.
Swing trading: ideals are abundant, but reality is stark
There is also a swing trading strategy, which requires you to master the basic methods of judging market conditions and be able to roughly determine the highs and lows. The core idea is not to care about how much a coin will ultimately rise, as long as you can seize 10 opportunities for a 10% increase.
The specific operation is to find a coin that has the potential to rise by more than 10%, then use 10x leverage to participate, cash out when it doubles, and use all the assets gained to look for the next such opportunity, repeating the operation. Theoretically, after 10 operations, 1,000 can turn into 10.24 million.
However, in actual operations, accurately judging the timing of a coin's rise and fall is extremely difficult. The market is ever-changing, and various news and unforeseen events can impact coin price trends. A slight misstep could wipe out your principal completely.
Investing in early-stage projects: panning for gold in the sand, filled with uncertainty
In addition to the two methods mentioned above, there are other avenues, such as investing in early-stage potential projects. But this requires you to have an extremely keen eye to select truly valuable 'potential stocks' from numerous projects.
It's like searching for pearls in a pile of sand; you need to dive deep into researching project white papers, team backgrounds, technical strengths, application scenarios, and market demands. Moreover, even if you have a keen eye and select a good project, the project's development is full of uncertainties. It may fail due to insurmountable technical issues, intense market competition, or policy changes, turning your investment into vapor.
Summary: In the cryptocurrency market, turning 1,000 into 1 million is as difficult as climbing to the sky. It requires you to have precise vision, strong technical analysis skills, ironclad psychological resilience, and a bit of luck that is hard for ordinary people to attain. Therefore, if you enter the cryptocurrency market with just a simple dream of getting rich, you may be met with harsh reality. Before stepping into this high-risk field, you must be cautious, learn more, and understand more, so as not to let your wealth dissipate in a fleeting dream.
