In the investment wave of the cryptocurrency circle, one often receives numerous private messages from fellow coin friends, with one of the most frequently asked questions being how to expand the scale of funds through trading. Many people start with meager funds, and few invest a large amount of capital or even all their savings in cryptocurrency from the beginning. Today, I will deeply analyze a highly valuable knowledge point - the rolling warehouse strategy.
One, rolling warehouse: opening the door to wealth growth.
In the cryptocurrency circle, if one wants to achieve a qualitative leap in wealth, accumulating $1 million in capital is a crucial step. Starting from a few thousand dollars to achieve $1 million in capital, rolling warehouse is a path worth exploring. Once you successfully accumulate $1 million, your investment pattern will undergo a huge transformation. Even without using leverage, simply holding spot assets, if the increase reaches 20%, you can easily earn $200,000 in profit, which already exceeds the income limit of most people's annual earnings. More importantly, in the process of advancing from a few thousand to $1 million, you will gradually explore the underlying logic of making big money, and your mindset will become more stable, allowing for subsequent investment operations to be replicated and optimized based on this foundation.
However, investment must be down-to-earth; do not aim too high and fantasize about millions or billions in returns. In trading, learn to accurately identify the size of opportunities, reasonably plan positions, and avoid extreme situations of always being light or heavily invested. Daily small positions can be used for trial, and once a significant opportunity arises, one must act decisively. The rolling warehouse strategy is designed to capture such major opportunities; it is not a means of frequent daily operations, as in life, successfully applying the rolling warehouse three or four times is enough to achieve a leap from zero to millions and enter the ranks of the wealthy.
Two, key points of rolling warehouse operations.
1. Be patient and strike accurately: Once rolling warehouse operations succeed, the profits are extremely rich, so one must not operate randomly and must patiently seek high-certainty opportunities.
2. Grasp trend reversal nodes: The so-called high-certainty opportunities usually appear after a market crash enters a sideways oscillation stage and then breaks upward. At this time, the probability of the market entering an upward trend is high, and investors need to accurately judge the key nodes of trend reversal and decisively enter the market.
3. Clarify the direction of operation: In rolling warehouse operations in the cryptocurrency circle, it is recommended to only choose the long direction. This is because, in an upward trend, the overall market atmosphere is positive, and the probability of profit is relatively higher.
Three, re-recognition of rolling warehouse risks.
Many people have doubts about the rolling warehouse strategy, believing it carries huge risks. However, the actual situation is not so; the rolling warehouse strategy itself has controllable risks, even far lower than some conventional futures opening logic.
Taking $50,000 as an example, assume the initial capital comes from investment profits (if still in a loss state, it is not advisable to rashly try). Open a position when the Bitcoin price is $10,000, set a 10x leverage, use the isolated margin model, only using 10% of the position (that is, $5,000 as margin, which is actually equivalent to 1x leverage), and set a stop loss of 2 points. If the stop loss is triggered, the loss is only 2%, that is, $1,000. Even if it unfortunately blows up, the maximum loss is only $5,000, far from losing everything.
If the judgment is correct, and Bitcoin rises to $11,000, continue to increase the position by 10% of the total funds, and also set a 2% stop loss. Even if a subsequent stop loss occurs, the overall profit can still maintain 8%. Following this logic, if Bitcoin rises to $15,000 and the position increase goes smoothly, it is expected to earn around $200,000 in this 50% market. Capturing such opportunities twice can achieve approximately $1 million in profits.
As can be seen, the accumulation of wealth does not rely on unrealistic daily compounding, but through capturing a few exponential market movements. A 100-fold return may come from 2 times 10-fold, 3 times 5-fold, or 4 times 3-fold growth. The rolling warehouse concept itself has controllable risks; what truly brings risk is the choice of leverage multiples. 10x leverage can roll the warehouse, and 1x leverage is also feasible. Based on personal risk preferences, choosing two to three times or even lower multiples of leverage can also achieve dozens of times returns after capturing a few market movements.
At the same time, reasonably planning the capital investment ratio is also crucial. It is recommended that in cryptocurrency investments, do not invest more than one-fifth of the total personal funds, with futures funds accounting for one-tenth of the spot funds, meaning futures funds only account for 2% of total funds. Moreover, only choose mainstream and stable currencies such as Bitcoin, while pairing with two to three times leverage to minimize risks.
Four, capital management: the core defense line of investment.
Trading is not necessarily accompanied by risks; scientific capital management can effectively mitigate risks. Taking personal investment as an example, keep futures account funds around $200,000, while adjusting the spot account funds flexibly between $300,000 to over $1,000,000 based on market opportunities. With good luck, earning tens of millions of RMB in a year is not out of reach; even if luck is not on your side and the futures account unfortunately blows up, the profits from spot investments can make up for the losses, allowing for reinvestment later. To further reduce risks, every time a profit is made in futures investment, one can withdraw a quarter or a fifth to keep separately, ensuring that even if there is a blowup, some profits are retained.
For ordinary investors, it is recommended to use one-tenth of the spot funds for futures trading. For example, if the spot funds are $300,000, then invest $30,000 in futures. Through continuous practice, even after experiencing multiple blowups, one can gradually explore the ways of investment. If after multiple attempts one still cannot grasp the essence, it may indicate that futures investment is not suitable for you.
Five, the correct way for small funds to grow large.
In trading cognition, many people have misconceptions, believing that small funds can only grow quickly through short-term trading. This is not the case; such thinking essentially attempts to exchange time for space, pursuing overnight wealth, which often backfires. Small funds should focus on medium to long-term investments to achieve rapid accumulation of capital through exponential compounding growth.
Just like an extremely thin piece of paper, folding it 27 times can reach a thickness of 13 kilometers, folding it 37 times exceeds the thickness of the Earth, and folding it 105 times could even exceed the universe's capacity. Investment is similar; if you hold $30,000 in capital, you should think about how to seize opportunities to achieve a three-fold increase, and then replicate this achievement in the next wave of the market, thus quickly accumulating to $400,000 or $500,000. Instead of being obsessed with daily short-term gains of 10% or 20%, this method not only consumes energy but also increases risks due to frequent trading, ultimately leading to trouble.
The investment journey in the cryptocurrency circle is full of opportunities and challenges; rolling warehouse strategies and capital management are essential parts of it. I hope the above sharing can inspire everyone.