8 years of experience in cryptocurrency trading strategies
Sharing very practical cryptocurrency strategies with everyone. I have put a lot of effort into obtaining these, and they are extremely useful, so I can't help but share them with you.
Here’s an example using contracts:
First, if the cryptocurrency you choose for this strategy is something like ETH, which has a starting purchase price of 20 USDT, then you should prepare at least 8 USDT as your principal because you need to open a margin position.
Step 1: Use 1 USDT to open a position with 25x leverage, placing an order for 25 USDT. You can choose any entry point; there are no restrictions.
Step 2: Check your liquidation price, then place an order 1.5 USDT above your liquidation price, and double the value of your last order. For example, if your last order was for 25 USDT, then this time you'll need to use 2 USDT to open a position for 50 USDT. Then? If you can calculate the new liquidation price after opening the order, you can place a third order, using 4 USDT to open a 100 USDT position, similarly placing it around 1.5 USDT above the liquidation price. Since you are using 25x leverage, this means you will be liquidated if the market price falls by about 4%. Therefore, by placing an order close to the liquidation price, you can avoid liquidation and lower your average price due to the increased order size, allowing you to break even with just a small market rebound.
The theoretical pressure resistance of this strategy is based on your principal. Of course, I’m still using 8 USDT as an example. In the case of 8 USDT, you can increase your position two times. Including the first position, theoretically, you can withstand a 12% increase before liquidation. You can set a stop-loss point; my suggestion is to set the stop-loss at 98% of the third position’s opening price, meaning if it drops 2% after the third position is added, you should immediately stop loss.
I have used this method when I had 2 USDT before, and it works very well when combined with technical analysis. When the market situation arises, you don't have to hold positions for too long; instead, you can increase your position due to the drop, and finally, you can profit a lot during the rebound. However, if you do not combine it with technical analysis, the process of holding positions can become very painful. After all, the cryptocurrency market is not short of people getting rich quickly, but lacks longevity.
In conclusion, I still advise everyone: there are risks in the cryptocurrency market; enter with caution!