Can a thousand dollars earn a hundred thousand in the cryptocurrency world? Let me tell you from personal experience: two methods!
Method One: Chasing Three 10x Coins to Lie Flat?
Core Logic
There is a seemingly enticing basic theorem: in life, if you can continuously gamble on three 10x coins, you can achieve financial freedom. Specifically, prepare 10,000 dollars, and through three rounds of 10x growth, you can go from 10,000 to 100,000, then to 1,000,000, and finally reach 10,000,000. In other words, break down the goal of earning 10 million into the task of finding three 10x coins, and in each round of 10x growth, repeat the money-making operation 100 times; it seems that 10 million is within reach.
Realistic Dilemma
However, finding a 10x coin is far more difficult than imagined. There are numerous coins in the cryptocurrency market, and the market is highly volatile with great uncertainty. Many coins that claim to have potential ultimately either go to zero or remain stagnant for a long time. For example, in 2024, a large number of new coins emerged in the market, of which over 90% saw a price drop of more than 50% within three months, and those that can become 10x coins are extremely rare.
Moreover, even if you are lucky enough to find a 10x coin, accurately grasping the timing of entry and exit is not an easy task, let alone continuously finding three. Additionally, the so-called repeated 100 times of money-making operation is almost an impossible task in the rapidly changing cryptocurrency market, as each market situation is different, making it hard to replicate successful experiences.
Method Two: Rolling Position Operation, a 'Shortcut' from Tens of Thousands to 1 Million?
Key Points of Rolling Positions
Patience is Paramount: Once rolling positions are successful, the profits can be enormous, potentially earning tens of millions or even hundreds of millions easily. Therefore, operations cannot be arbitrary; one must wait for opportunities with high certainty.
Opportunity Judgment: High-certainty opportunities usually appear after a sharp drop in coin prices, entering a horizontal shock phase, and then breaking upward; at this time, the probability of a trend market emerging is relatively high, so one must find the key points of trend reversal and get on board in time.
Operation Direction: Only conduct long operations.
Risk Analysis
Although some claim that rolling positions carry much lower risk than futures trading, the reality is not that simple. Taking a principal of 50,000 as an example, suppose a position is opened when Bitcoin is at 10,000, with 10x leverage and using a partial position model, opening only 10% of the position (i.e., 5,000 dollars as margin, equivalent to 1x leverage), with a 2-point stop-loss set.
It seems that a stop-loss only loses 2% (1000 dollars), but if the market trend is unfavorable and stop-losses occur repeatedly, the principal can quickly shrink. Moreover, in actual operations, the cryptocurrency market is highly volatile; once extreme market conditions occur, such as a significant drop in Bitcoin within a short period, even with good position control, liquidation may happen due to insufficient margin.
Additionally, to capture two 50% market trends to earn 1 million, the judgment of market trends is extremely high. The market does not always develop as expected, and uncertainty always exists. At the same time, thinking that 100x returns rely on a few rounds of exponential growth rather than daily or monthly compounding ignores the powerful role of compounding in long-term investments, emphasizing only exponential growth, which increases the difficulty and risk of operations.
Written at Last
In the cryptocurrency world, these two seemingly feasible methods for achieving wealth leaps both face numerous insurmountable obstacles and risks. The cryptocurrency market is complex and variable, filled with uncertainty and speculation; behind the stories of overnight wealth are countless people losing all their capital.
Investment requires rationality; one must not be blinded by the fantasy of instant wealth and must fully recognize the risks involved, treating their principal with caution. After all, in this tempting market, preserving the principal is the fundamental key to long-term survival.
