The true cryptocurrency trading masters keep things simple and do simple things repeatedly. This short-term trading model has a winning rate of up to 98.8%. Learning the process will allow you to easily make 100,000 to 1,000,000 yuan by only using this model!
1. Warehouse division is not metaphysics, it is a life-saving talisman!
How to divide it specifically?
For example, if you have 30,000 U, you can directly cut it into 3 parts, each part is 10,000 U. Each time you open a position, you only use 1 part, and lock the rest into your wallet and pretend it doesn't exist.
Remember two numbers: the maximum price of a big pie is 10 times, and the price of a copycat should not exceed 5 times!
Even if you see a sharp rise in prices, don’t be greedy! The higher the leverage, the easier it is for the exchange to send you back to zero with a needle.
For example, if you open a 10x margin with 10,000 U and the price drops by 10%, your account will evaporate directly. But if you only open a 5x margin, it will only explode if it drops by 20%, and the error tolerance rate will double.
There is also a hidden function of warehouse division: to cure over-indulgence!
When people lose money, they tend to "open orders in revenge", which results in more and more losses.
After the warehouse is divided, even if you lose one share in a fit of anger one day, the remaining two shares can still keep you calm. Can you have the same mentality if you lose 10,000 yuan or 30,000 yuan?
2. High leverage = chronic suicide, don’t be stubborn!
There are always people who are dissatisfied: "My neighbor Lao Wang made 100 times the money in one night and bought a BMW, why can't I do the same?"
Brother, Lao Wang will not tell you that he has been liquidated 10 times, and he will not say that he exchanged his BMW for the property certificate.
There are only two truths about high leverage:
1. Pin-ins are specially designed to cure dissatisfaction: The exchange likes those of you who open high multiples the most. A pin in the middle of the night will take away all the principal.
2. Your mentality collapses: If the price opens at 100 times and fluctuates by 1%, you become restless and can still operate rationally?
Remember:
- More than 10 times the pie = gambling with your life
- More than 5 times the copycat = giving away money
The lower the leverage, the more courageous you are to hold a position and the more likely you are to catch the trend!
Three ways to die in a counter-trend order:
1. The stubborn type: "I just don't believe it won't fall!" - and end up losing all the capital.
2. The type of people who want to cover their positions: "If the price drops further, I will add more positions to pull up the average price!" - As a result, they will cover their positions until they are out of ammunition and food.
3. Metaphysical type: “When a golden cross appears in the K-line, there will definitely be a reversal!” — The dealer will use a big negative line to teach you a lesson.
Correct posture: It is better to miss something than to give away your life!
The market is going crazy? Just watch! If you miss out, you won’t lose money, but if you go against the trend, the loss can be fatal.
Why do 9 out of 10 people lose in cryptocurrency contracts? After reading this contract operation guide, you will be the only one!
Table of contents:
1. Contracts are not gambling
2. Find the method and market environment that best suits you
3. Positions, volatility, and holding time - understand the true risks of contracts and leverage
4. Leverage is limited by position. You cannot use 100x leverage for a few thousand dollars.
5. If you only enter 10% with a 100x leverage, it is not called a light position. Ten times is ten times!
6. Recognize the limits of your current approach
7. Stop loss, don’t resist the order!
8. As long as you keep paying attention to the market, the strategies that have worked will work again.
9. Keep transaction records 10. If you have never been exposed to contracts/have not entered the cryptocurrency circle before reading this article, don’t just join it!
1. Contracts are not gambling
The contract changes the nature of the risk. For example, if the price of the currency rises by 1%, the player's investment will double. If the price of the currency drops by 1%, the player's assets will be liquidated and all the principal will be lost. Poverty and wealth are always just a thought and a moment. In fact, it is the same as futures and stocks (margin trading). Of course, there are also friends who think that these are also gambling...
When I was losing money at the beginning, I held the mentality of "contract = betting on size with some rules", and I directly used 50 times leverage with a capital of one or two hundred U.
For the first order, the target profit is 5%, and the maximum loss in the middle is 75%. Hold the order, successfully recover the investment and stop profit;
The second transaction targeted a 2.5% profit, but I lost 75% in the middle. I held on to the order and successfully liquidated my position and returned to zero.
Wanting to make a profit of 2.5% but losing 100%, the odds of a few tens of percent are really bad luck; but now it seems that I was lucky to have stepped into the trap of carrying orders so early. If the principal is thousands or even tens of thousands, and then there is such a blow-up and exit...
I guess I will become one of those guys who keep saying "contracts are gambling" all day long. As one of the relatively more miserable ones (losing money due to margin calls), I will refuse to learn more about contracts or even digital currencies.
Then switch to futures or stocks and continue to lose money
2. Find the method and market environment that best suits you
After my own exploration, I chose a relatively low-risk operation method.
Prepare a fund that you can afford to risk, open a 5x contract, and buy a quarter of the fund.
For example, my fil operation is to prepare 200U principal, buy 50U, and open a contract of 5 times.
Why do you do this? Because buying 50U means you still have 150U of margin in it, and the currency will only explode if it drops by 40%.
This way you won’t get liquidated accidentally. Many of my friends like to play with high multipliers of 10x or 20x. This is very tiring. You have to keep watching the market and can’t sleep at night.
Finally, choose a 5x contract and set a stop loss, and you will basically not encounter a margin call.
As for taking profit, since my own strategy for spot trading is to withdraw after making a profit of 30 points, so if I change it to a 5x contract, it means I will withdraw after making a profit of 150%.
3. Understand the real risks of contracts and leverage
A factor that is as important as leverage but often overlooked in affecting risk is holding time. Profit and loss = holding time volatility position, the risk can be roughly expressed as above, among which holding time is the most important.
Ten times leverage is indeed high risk, but it is completely different from going in for a 5-minute short-term trade and watching it at any time, and going to bed with 10 times leverage. Some of the latter are even too extreme to set no stop loss, which is almost as risky as losing money. One of the reasons why I used 10 times and 20 times leverage when I didn’t have more than $50 at the beginning was that I held the position for a short time, so I could trade hundreds of orders but control the risk;
The volatility of altcoins is greater than that of Bitcoin, and the volatility of contracts is greater than that of spot, which is also something that novices need to pay attention to before opening a position. Some friends told me that contracts are risky, and they turned around and went all in to chase the rise of small-volume altcoins whose white papers they had not even read carefully. The actual risk they took was much greater than playing contracts normally. But then again, when the market direction is misjudged, a huge fluctuation can also cause me to suffer a big loss. For example, FIL futures rose from 25 to 30 in one or two minutes without any signs, which directly caused me to lose more than one-third of the principal at the time in one order;
Positions seem to be the most obvious. The more positions you have, the greater the risk. But some people say that "as long as you keep doing contracts, you will inevitably slide towards 100x leverage" or even say that you use 100x leverage to trade altcoins, which involves another point:
4. Leverage has position limits. You cannot use 100x leverage for a few thousand dollars.
At least this is the case for Binance’s USDT standard. All exchanges have a maximum position limit for leverage, taking BTC as an example:
Everyone knows what 125X means, but the "maximum position you can hold" is 50,000 USDT, which means you can only use 125x leverage when you have less than 400 USDT (50,000/125). If you don't change the leverage, even if you have 50,000 USDT, you can only hold 1.25 BTC at most (it's just 40,000 when I wrote this article). If you only open this one position, it's correct that it says 125x, but you're using 1x leverage, which is useless!
Correspondingly, BTC 100x leverage can only be used up to $2,500, ETH 100x leverage is the maximum, only $100 can be used; altcoins do not have 100x leverage, most of them are 50x as the upper limit, as shown in the figure below
You can only use 100 dollars to open 50 times.
The maximum position that can be held is determined by the leverage number, the scale of the exchange, and whether the coin is large enough. Binance is already the world's largest digital currency exchange. If the multiple you get exceeds the above by too much (for example, you are asked to use 100 times BTC leverage with 10,000 dollars) or has a leverage of 200 times or even higher, it is very likely a scam of a black exchange!
What are the ways to make money in the cryptocurrency world? (I have summarized 7)
The first one,
Cryptocurrency speculation is similar to stock speculation, selling high and buying low. Cryptocurrency speculators are considered the mainstream force in the currency circle. After all, there are unlimited possibilities for operation in the ups and downs of virtual currencies. Generally, the interval between buying and selling in the medium and short-term speculation of cryptocurrencies can be as long as ten days and a half a month, or as short as a few minutes. The price of virtual currency is easily affected by news, speculation, and dealer manipulation. Any unfounded news may cause it to rise or fall temporarily. Therefore, cryptocurrency speculators need to pay attention to the dynamics of the currency circle and the trend of currencies. The key is to stop when you are ahead, don't be greedy, it is best to set a profit limit for yourself, such as selling a short-term profit of 10%. If you find a long-term downward trend after buying, sell it in time to avoid greater losses. At the same time, you can use some quantitative robots to operate, such as the quantitative robots of a certain Taiwanese company, which can use grid strategies, Martingale and other trading strategies to help investors achieve high-sell-low operations.
The second
After the prices of old coins such as Bitcoin and Ethereum have doubled infinitely, many people are still optimistic about the future development and continue to invest in the long term, hoarding some potential virtual currencies and locking them up in preparation for greater income in the future. The most important thing about hoarding coins is to choose the right target. If you chose Bitcoin ten years ago, you might have been financially free. But if you made a mistake a few years ago and chose a certain altcoin, and the altcoin finally fell, you would have lost all your money. If you choose a certain value target, the next step is to buy it at a good price and hold it for a long time. At this time, you can use the method of fixed investment to spread the average purchase cost. At the same time, you must insist on holding your value target. It is easy to say but difficult to do. Before your virtual currency appreciates significantly, you must have a firm belief and constantly overcome human desires. At the same time, you must pay attention to safety when hoarding coins. Some people store their coins in hot wallets, which may be stolen or forget the mnemonic. I suggest that small funds should be placed directly in exchanges, and large funds should be stored in cold wallets.
The third type,
Defi mining requires you to pledge your coins on the platform to provide liquidity (coins), and the platform will give you other tokens as rewards. For example, if you hold a certain coin, but the recent price is not as high as you expected, and you don’t want to sell it; or if you plan to hold it for a long time, you can pledge it for mining. Regarding Defi mining, if the platform you choose is reliable, there will generally be good stable returns. There are many platforms where the stablecoin returns can reach an annualized rate of more than 10%. However, it is still recommended that you choose some large platforms. If the amount is relatively large, it is recommended to directly choose a Defi platform on the Ethereum chain
The fourth type,
Exchange arbitrage The exchange arbitrage mentioned here is actually a new issue, that is, when the exchange lists some new coins, it and the project party do a pledge reward activity. Such an activity promotes the project for the project party, and for the exchange, it obtains more traffic and also empowers its platform currency. Generally, to participate in this kind of new issue, you need to pledge and invest in its platform tokens to get the reward of the new currency. Why is it called exchange arbitrage? Because generally we can't buy the exchange's platform currency directly in order to issue a new coin, especially in the late stage of the bull market. If you buy it directly, the risk is relatively large. Then at this time, you can pledge our existing currencies through some lending platforms to borrow this platform currency (such as pledging BTC ETH USDT, etc. to borrow BNB and FTT), so as to obtain the qualification for new issuance. After the event is over, return the platform currency, then your profit is the income brought by the new currency minus the interest income from your loan.
The fifth type,
There are many blockchain games in the GaMeFi gold-making GameFi track, and the most famous one is Stepn, which allows you to make money by running. You can get some benefits by completing some operations in the game, but generally you must first invest a certain amount of virtual currency. Overall, GaMeFi is still in a chaotic period, and its model is closer to a Ponzi scheme, so it is not recommended for novices to invest large amounts of money.
The sixth type
Airdrops are free tokens issued by some virtual currency teams and trading platforms. Some airdrop tokens are worthless, but some high-quality projects will issue high-quality airdrops, but the threshold for obtaining airdrops is relatively high. In 2021, many platforms still had relatively rich airdrop income, but more and more people participated, and the enthusiasm became higher and higher. Therefore, if you want to participate in airdrops next, try to participate with the product experience in mind.
The seventh type,
Physical mining machines are either used by individuals to assemble mining machines at home with graphics cards for small-scale mining, which is more common in China. Another way is to purchase mining machines on a large scale and set up mining farms in some central and western regions of the country where electricity costs are low. Now this kind of survival space in China is getting narrower and narrower because policies do not allow it. Now generally look for reliable domestic mining companies that host machines overseas. In the current bear market, the value of currencies such as Ethereum has fallen a lot compared to before. Many miners cannot cover the cost of electricity, so the mining efficiency is getting lower and lower.
Three ways to trade Bitcoin: short-term is like gambling, mid-term is about strategy, and long-term is about vision
As Bitcoin hit $110,000, breaking its all-time high, it is estimated that more and more people will start paying attention to cryptocurrencies through the media or their friends who have become rich.
The cryptocurrency world has seen one wave of “wealth-making myths” after another, and many people have rushed in with the mentality of “getting rich overnight,” fantasizing that the next surge will hit them on the head.
But it won’t be long before 90% of people discover a cruel fact: it is easy to enter the cryptocurrency circle, but it is difficult to make money.
The reason is simple: Do you have a full understanding of Bitcoin before you enter the cryptocurrency circle, or do you just treat it as a speculative object for short-term speculation?
Only with sufficient cognition and understanding of its underlying logic can you not be swayed by market news and hold it for a long period of time. Different trading cycles also determine your future destiny.
Today we will focus on the three trading methods of Bitcoin: short-term, medium-term, and long-term, and the differences between them. Why is it said that short-term is more likely to lose money, medium-term opportunities to make money increase, and long-term is more likely to achieve financial freedom?
1. Short-term trading: It sounds exciting, but in reality most people are cannon fodder
Short-term trading, in simple terms, means "quick in, quick out". The period between buying and selling may be a few minutes, a few hours, or at most a few days. The purpose is to take advantage of the swing profit, and the pursuit is the rhythm, speed, and emotional game.
It seems very technical, and people always talk about "technical indicators", "K-line patterns", "support and resistance", but the truth about short-term trading is: it is a zero-sum game, not much different from gambling.
I have summarized the following points:
1. High transaction frequency, handling fees eat up profits
No matter which exchange you use, every transaction has a fee. If you make ten short-term transactions, even if you only pay a 0.1% fee each time, it will greatly eat up your profits. In the end, you may "see the right direction but lose the principal."
2. Emotional fluctuations are large, and impulsive actions are prone to occur
Bitcoin is traded 24 hours a day, and the market fluctuates violently. Human greed and fear are magnified to the extreme in the cryptocurrency circle. Many people chase high prices when prices rise, and sell at low prices when prices fall. They often do the opposite, buying at highs and selling at lows.
3. Professional institutions are your opponents
In the short-term market, you are not only facing retail investors, but also experienced traders, quantitative robots and huge hedge funds. Their trading speed, algorithmic models and risk control capabilities are far beyond those of ordinary people. You use your naked eyes to look at the charts, while they use AI to predict the market. How can you win?
Therefore: short-term trading seems to have a high trading frequency and more opportunities to make money, but in the end it is “nine losses, one draw, and one win”.
Especially for novices, if they do not have rigorous strategies and strong self-discipline, short-term trading is basically "burning money".
2. Mid-term trading: strategy is king, rationality is more important than emotion
Mid-term trading usually refers to holding positions for a period of two weeks to six months. This trading method does not pursue "making quick money" but focuses more on "looking at trends and finding logic". It is a strategy between speculation and investment.
For example, buy Bitcoin when it falls to a key support level, wait for the next round of uptrend, and then sell it at the right price.
Mid-term trading is easier to make money than short-term trading. I have summarized the following points:
1. Mid-term trading reduces frequent operations and avoids handling fee traps
Compared with short-term trading, mid-term trading does not require watching the market for several hours a day, nor does it require entering and exiting the market dozens of times a day. With fewer operations, the handling fee is naturally lower, and the profit margin is cleaner.
2. The mid-term focuses on fundamentals and market sentiment, not K-line noise
Mid-term trading usually focuses on some "event-driven" or "market cycles". For example, halving cycle, ETF news, US interest rate cuts, main institutions' position building, etc. These factors are more "founded" and do not rely on "blind guessing" like short-term trading.
3. It is easier to set stop-profit and stop-loss in the mid-term to control risks
Mid-term traders generally have clear entry and exit points, such as "stop loss if the price falls below the previous low, and take profit if the price rises to the target price." They do not pursue every penny of profit, nor will they be led astray by emotions.
Of course, there are risks in the mid-term, especially in a volatile market, where you may be "washed out" many times. But as long as you stick to discipline and strictly implement the strategy, in the long run, the winning rate of the mid-term will be significantly higher than that of the short-term.
3. Long-term holding: Be friends with time and you will make money with a high probability
You may have heard of the term "Bitcoin believers". They don't speculate on Bitcoin, they just buy it and hoard it. Every time the market crashes, they are happy because they can buy it at a low price.
These people believe that the value of Bitcoin will continue to grow in the long term, short-term fluctuations are just noise, and time will prove everything.
If you look at the history of Bitcoin, this is indeed true:
2010: A few cents per Bitcoin
2013: First time breaking $1,000
2017: $20,000
2021: Breaking through $60,000
2025: Stabilize at $100,000
You will find that any time you buy at a historical high, as long as you hold it for more than 4 years, you will eventually make a profit. Bitcoin will not treat any long-term holder unfairly.
The logic behind this is simple and plain:
1. The total amount of Bitcoin is limited, and it is highly resistant to inflation
Its supply is fixed, and there will only be 21 million of them in the end. This scarcity, coupled with the global demand to combat the depreciation of fiat currencies, gives it a value storage capability similar to "digital gold".
2. More and more institutions recognize Bitcoin
Tesla, MicroStrategy, BlackRock, Fidelity and other giants have successively held coins or launched related products. Bitcoin is gradually "going out of the circle" and moving from marginal assets to mainstream configuration.
3. Time eliminates risks and improves winning rate
Any asset will fluctuate in the short term, but in the long term, the value will get closer and closer to the true level. As long as you choose the right direction, time is your best ally.
The biggest enemy of long-term investment is not the market, but whether you can persist.
Do you panic and sell your stocks when the market plummets? Do you get greedy and hold on when the market is bullish? These are the keys to the outcome!
4. What should ordinary people do?
You may ask: What should I do? Don’t touch short-term investment? How to learn mid-term investment? How to hold long-term investment?
My suggestion is this:
1. Newbies should never trade in the short term
Unless you have strong technical analysis skills and psychological qualities, stay away from short-term trading. You are not making money, you are working for the exchange and being a leek for the institution.
2. The mid-term is to combine hot spots and cycles
In the mid-term, learn to observe the rhythm of the market, study hot concepts, and make decisions based on some key indicators. Bitcoin has several "rhythm trends" every year, and it is good to be able to grasp one or two of them.
3. Long-term positions + fixed investment is the most stable method for ordinary people
For example, buy a fixed amount every month, ignore short-term fluctuations, and stick to it for a few years. History has proven that this method can beat 90% of traders.
4. Always remember: risk control comes first
Regardless of the strategy, you must manage your position well. Don't go all in, don't borrow, and don't act blindly.
Conclusion: To make money, start by knowing yourself!
There are indeed opportunities in the cryptocurrency world, but they are not for everyone. The fastest way is often the slowest; the most stable strategy may actually bring the greatest benefits.
When investing in Bitcoin, the most important thing is not to predict the future, but to see the direction clearly amid fluctuations and to keep your original intention amid temptations.
In the bull market, we must not miss any opportunity to make profits continuously. If you are eager to turn over your position, eager to make a big profit, and eager to get your money back, then follow my homepage, please follow the pace of Koi, and plan for the upcoming bull market together! Koi will do its best to help you realize your dream of turning over your position in the bull market.$RESOLV $COW #Solana现货ETF竞赛 #币安HODLer空投SPK
