Real experts in trading coins maintain simplicity; they repeat simple tasks, achieving a short-term trading model with a win rate as high as 98.8%, allowing you to smoothly go from 100k to 10 million, focusing solely on this one model!
1. Position splitting is not mystical; it’s a lifeline!
How exactly to split?
For example, if you have $30,000, directly split it into three portions, each $10,000. Use only one portion for each trade, locking the rest away as if it doesn't exist.
Remember two numbers: Bitcoin maximum 10 times, altcoins don’t exceed 5 times!
Even if you are sure that it will skyrocket, don't be greedy! The higher the leverage, the easier it is for the exchange to send you to zero with a spike.
For example, if you open a $10,000 trade with 10 times leverage and the price drops by 10%, your account evaporates directly. But if you only use 5 times leverage, you would need a 20% drop to get liquidated, effectively doubling your margin for error.
Position splitting has a hidden feature: it helps with emotional control!
When people lose money, they tend to "revenge trade," resulting in deeper losses.
After splitting positions, even if you lose one portion on a whim one day, the remaining two portions can help you stay calm. Losing 10,000 and losing 30,000, can you maintain the same mindset?
Two, high leverage = slow suicide, don’t be stubborn!
There will always be someone who disagrees: "Old Wang next door made a BMW overnight with 100 times leverage, why can't I?"
Brother, Old Wang won't tell you that he has liquidated 10 times, nor will he say that his BMW was exchanged for the house deed.
The truth about high leverage is twofold:
1. A spike is a cure for disbelief: Exchanges love you guys who open high multiples; a spike at midnight takes away your entire capital.
2. A mindset collapse: with 100 times leverage, a 1% price fluctuation makes you anxious; can you still operate rationally?
Remember:
- Bitcoin over 10 times = gamble with your life
- Altcoins over 5 times = giving away money
The lower the leverage, the more you dare to hold positions, and the more you can benefit from the trend!
Three major ways to die in reverse trend trades:
1. The stubborn type: "I refuse to believe it won’t drop!"—the result is losing all capital.
2. Averaging down type: "If it drops further, I’ll add to my position to lower my average!"—the result is running out of ammo.
3. Mystical type: "The K-line has formed a golden cross; it must reverse!"—the market maker teaches you a lesson with a big bearish candle.
Correct posture: Better to miss out than to lose money!
Is the market going crazy? Just watch! Missing out doesn't mean losing money, but losing money against the trend can be fatal.
Why do 9 out of 10 people lose in crypto contracts? After reading this contract operation guide, you will be the one who wins!
Table of contents:
1. Contracts are not gambling
2. Find the method that suits you best, as well as the market environment.
3. Positions, volatility, holding time—recognizing the true risks of contracts and leverage
4. Leverage has position limits, you can't open a hundred times leverage with several thousand dollars.
5. Only entering 10% with 100 times leverage is not called light positions; ten times is ten times!
6. Recognize the limits of your current methods
7. Set stop-losses; don’t hold onto losing positions!
8. As long as you keep an eye on the market, effective strategies will recur.
9. Keep trading records.
10. If you have not been in contact with contracts or the crypto space before reading this article, don’t just jump in!
1. Contracts are not gambling
Contracts change the nature of risk; for example, if the coin price rises by 1%, the assets invested by the player double. If the price falls by 1%, the player's assets will be liquidated, losing all capital. The difference between rich and poor always lies in a single thought and moment. In fact, it is similar in nature to futures and stocks (margin trading), although there are also those who believe these are also gambling...
When I was initially losing money, I held the mindset that "contracts = some rules for gambling on size," directly using 50 times leverage with a capital of $200.
For the first trade, the target is a 5% profit, with a maximum loss of 75% along the way, holding until you break even and take profit; for the second trade, the target is a 2.5% profit, with a 75% loss along the way, holding until liquidation and going to zero.
Wanting to make a 2.5% profit but losing 100%—a one in several tens chance is truly bad luck; however, it seems that stepping into the trap of holding positions early could be called lucky. If it were to happen when your capital runs into thousands or even tens of thousands, and you find yourself liquidated...
It is estimated that I will become one of those who constantly say "contracts are gambling"; as a relatively worse group (having lost money from liquidation), I will refuse to further understand contracts or even digital currencies.
Then switch to futures or stocks and keep losing
Second, find the method that suits you best, as well as the market environment
After my own exploration, I chose a relatively low-risk way of operation.
Prepare an amount of funds that you can afford to lose; open a 5 times contract, buying a quarter of this amount.
For example, my FIL operation is to prepare $200 capital, buy $50, and open a 5 times contract.
Why operate this way? Because buying $50 means you still have $150 in margin left; you would only be liquidated if the asset drops 40%.
This way, you won’t accidentally get liquidated. Many of my friends like to trade with high leverage of 10 or 20 times, which can be exhausting, as they have to keep a constant watch over the market, even losing sleep at night.
Finally, choose to set a stop-loss when opening a 5 times contract, and you basically won't encounter liquidation.
For taking profits, my strategy for spot trading is to withdraw when I profit by 30 points, so for a contract at 5 times leverage, it means 150% profit before withdrawing.
Three, recognize the true risks of contracts and leverage
An equally important factor that affects risk but is often overlooked: holding time. Profit and loss = holding time × volatility × position, which can roughly represent risk, including holding time.
While 10 times leverage is indeed high risk, entering for a 5-minute short-term trade and constantly watching it is completely different from going to sleep while on 10 times leverage. Some of the latter cases are so extreme that they don't set stop-losses, making the risk nearly tantamount to giving away money. When I started with no more than $50, I often used 10 or 20 times leverage; one reason was the short holding time, allowing me to control risks while making hundreds of trades.
Altcoins fluctuate more than Bitcoin, and contracts fluctuate more than spot. Beginners need to pay attention before opening positions. Some friends have told me that contracts are risky, yet they immediately go all in chasing small-cap altcoins that they haven't even read the whitepaper for, when in reality, the risks they bear are far greater than playing contracts normally. However, when misjudging market direction, a huge fluctuation can lead to significant losses, for example, FIL futures rose from 25 to 30 without warning in one or two minutes, directly causing me to lose more than a third of my capital.
Position is the most obvious aspect; the more positions you have, the greater the risk. But there's talk that "as long as you keep trading contracts, you will inevitably slide towards 100 times leverage," even claiming to do 100 times leverage on altcoins, which brings up another point:
4. Leverage has position limits, you can't open a hundred times leverage with several thousand dollars.
At least this is the case for Binance's USDT. All exchanges have a maximum position limit on leverage; taking BTC as an example:
Everyone knows what 125X means, but the "maximum allowable position" of 50,000 USDT means you can only actually use 125 times leverage when your balance is less than 400 USDT (50,000/125). If you don't adjust the leverage, even if you have 50,000 USDT, at most you can only hold 1.25 BTC (when writing this article, the price was just about 40k). Opening just this one position, it is correct that it says 125x, but you are using 1x leverage, which is equivalent to not using leverage!
Correspondingly, BTC with 100 times leverage can only use a maximum of $2500, ETH with 100 times leverage can only use a maximum of $100; altcoins do not have 100 times leverage, most have 50 times as the limit, as shown in the figure below
You can only use $100 to open 50 times leverage.
The maximum allowable positions are determined by the leverage ratio, exchange size, and whether the coin is large enough. Binance is already the largest digital currency exchange in the world; if the multiples you receive exceed the limits too much (for example, allowing you to open 100 times leverage on Bitcoin with $10,000) or offer 200 times leverage or even higher, it is likely a scam from a black exchange!
What are the ways to make money in the crypto space? (I summarized seven types)
The first type,
Trading coins is similar to trading stocks, involving buying high and selling low. Coin traders represent the mainstream in the crypto space, as there are endless opportunities to operate during the dramatic rises and falls of virtual currencies. Generally, the interval between buying and selling in short to mid-term trading can be as long as ten days to half a month, or as short as a few minutes. The prices of virtual coins are easily influenced by news, hype, and market manipulation, and even a slight hint of news can lead to temporary increases or decreases. Therefore, trading coins requires constant attention to the dynamics of the crypto space and the trends of various coins. The key is to take profits when they appear, don't be greedy, and it’s best to set a profit limit for yourself, for instance, selling out after a 10% profit from a short trade. If you find a long-term downtrend after buying, sell promptly to avoid greater losses. You can also utilize quantitative trading bots for operations, such as bots from certain Taiwanese companies using strategies like grid trading or Martingale to help investors achieve high buy-low and low-sell operations.
The second type
Holding coins, after Bitcoin, Ethereum, and other old coins have skyrocketed in price, many still hold optimism for future developments, continuing long-term investments, hoarding some promising virtual coins in preparation for greater income later. The most important thing in holding coins is to choose the right targets; if you chose Bitcoin ten years ago, you might already be financially free. But if a few years ago you made a wrong choice and picked a certain altcoin that eventually crashed, you would have lost everything. After selecting a valuable target, the next step is to buy in at a good price and hold it long-term. At this point, you can use a regular investment method to lower your average purchase cost. Meanwhile, you must persist in holding your valuable targets, which is easier said than done. Before your virtual currency appreciates significantly, you need to have firm faith and continuously overcome human desires while also being cautious about safety, as some people keep coins in hot wallets, which can be stolen or have their mnemonic phrases forgotten. Personally, I recommend putting small funds directly on exchanges and storing large amounts in cold wallets.
The third type,
In DeFi mining, you stake your coins on the platform to provide liquidity (coins), and the platform gives you other tokens as rewards. For example, if you hold a certain coin but the recent price doesn't meet your expectations, you can either not sell or plan to hold long-term and stake it for mining. Regarding DeFi mining, if you choose a reliable platform, it usually provides decent stable returns. Many platforms offer stablecoin yields of over 10% annually. However, it's still recommended to choose larger platforms. If the amount is substantial, it is advisable to choose a DeFi platform on the Ethereum chain directly.
The fourth type,
Exchange arbitrage, as mentioned here, is actually a form of initial coin offering, meaning that when exchanges list certain new coins, they collaborate with the project parties on a staking reward activity. This type of activity promotes the project for the project parties and gains more traffic for the exchanges, while also empowering their platform tokens. Generally, participating in such initial coin offerings requires staking their platform tokens to earn new coin rewards. Why is this called exchange arbitrage? Because generally we cannot directly buy the exchange's platform tokens just to participate in an initial coin offering, especially in the later stages of a bull market; buying directly involves relatively high risks. At this time, you can use some lending platforms to stake your existing coins to borrow the platform tokens (for example, staking BTC, ETH, USDT, etc. to borrow BNB and FTT), thus qualifying for the initial coin offering. Then, after the activity ends, return the platform tokens, and your profit will be the income brought by the new coins minus the interest from your loan.
The fifth type,
GaMeFi, the GameFi track has many chain games, currently the most famous is stepn, which allows you to earn money by running. By completing certain actions in the game, you can earn some returns, 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 financial pyramid scheme, so it is not recommended for beginners to invest large amounts.
The sixth type
Airdrop grabbing means obtaining some virtual currency that teams and trading platforms distribute for free at zero cost. Some airdrop tokens have no value, but there are still some quality projects that will distribute good airdrops, although the thresholds for obtaining airdrops are also relatively high. In 2021, many platforms had rich airdrop returns, but as participation increased, it became more competitive. Therefore, when participating in airdrops, it’s best to approach it with a product experience mindset.
The seventh type,
Mining with physical mining rigs can be done either by general individuals assembling rigs at home using graphics cards for small-scale mining, which is currently quite common in the country. Alternatively, large-scale purchases of mining rigs to establish mining farms in certain regions with low electricity costs in the central and western parts of the country are becoming increasingly limited due to regulatory restrictions. Currently, it’s generally about finding reliable domestic mining companies that host machines overseas. Currently in a bear market, the value of Ethereum and other coins has dropped significantly compared to before. Many miners are unable to cover their electricity costs, so mining efficiency is decreasing.
Three types of Bitcoin trading methods: short-term like gambling, mid-term with strategies, long-term with vision.
As Bitcoin surged to $110,000, breaking historical highs again, it's estimated that recently more and more people will start paying attention to cryptocurrency through media or wealthy friends around them.
The "wealth creation myth" in the crypto world comes wave after wave, with many rushing in with the mindset of "getting rich overnight," fantasizing that the next surge will hit them.
But it won’t be long before 90% of people discover a cruel reality: entering the crypto space is easy, but making money is very hard.
The reason is simple: whether you have a thorough understanding of Bitcoin before entering the crypto space, or if you just regard it as a speculative object for a short-term gamble?
Only with sufficient knowledge and understanding of its underlying logic can one avoid being swayed by market news and hold for the long term. Different trading cycles also determine your future fate.
Today we focus on the three types of trading for Bitcoin: short-term, mid-term, and long-term; their differences, why short-term trading is likely to incur losses, mid-term offers more opportunities to profit, while long-term is more likely to achieve financial freedom.
One, short-term trading: sounds exciting, but most people end up as cannon fodder.
Short-term trading, simply put, is "quick in and out." The cycle between buying and selling may be a few minutes, a few hours, or at most a few days. The goal is to capture segment profits, pursuing rhythm, speed, and emotional competition.
It seems very technical, often discussing "technical indicators," "K-line patterns," and "support and resistance," but the truth of short-term trading is: zero-sum game, not much different from gambling.
I summarize the following points:
1. High trading frequency, fees eat into profits.
No matter which exchange you use, there are transaction fees for every buy and sell. If you make ten short-term trades, even if you only pay 0.1% in fees each time, it will significantly eat into your profits. Ultimately, you might "see the right direction but lose your capital."
2. Emotional fluctuations are large, making impulsive operations easy.
Bitcoin trades 24/7 with dramatic market fluctuations. Human greed and fear are magnified to the extreme in the crypto space. Many people chase highs when prices rise and cut losses when prices fall, often operating in the opposite direction, buying at high points and selling at low points.
3. Professional institutions are your opponents.
In the short-term market, you face not only retail investors but also experienced traders, quantitative robots, and large hedge funds. Their trading speed, algorithm models, and risk control capabilities far exceed those of ordinary people. While you look at charts with your naked eye, they use AI to predict the market. How can you win?
Therefore: Short-term trading seems to have a high frequency of trades and more opportunities to make money, but in the end, it's "nine losses, one breakeven, one profit."
Especially for beginners, if there is no rigorous strategy and strong self-discipline, short-term trading is basically "playing with your life and burning money."
Two, mid-term trading: strategy is king, rationality is more important than emotions.
Mid-term trading usually refers to holding periods between two weeks and six months. This trading method does not pursue "quick profits" but focuses more on "watching trends and finding logic," making it a strategy that lies between speculation and investment.
For example, buy when Bitcoin hits a key support level, wait for the next rally, and then sell at a suitable price.
Mid-term trading is easier to profit from than short-term trading; I summarize the following points:
1. Mid-term trading reduces frequent operations, avoiding fee traps.
Compared to short-term trading, mid-term trading does not require hours of watching the market every day and does not require entering and exiting the market dozens of times daily. With fewer operations, fees are lower, and profit margins are cleaner.
2. Mid-term focuses on fundamentals and market sentiment, rather than K-line noise.
Mid-term trading usually focuses on some "event-driven" or "market cycles." For example, halving cycles, ETF news, US interest rate cuts, major institutions building positions, etc. These factors are more "fundamental" and do not rely on "blind guessing" like short-term trades.
3. Mid-term trading makes it easier to set stop-losses and take-profits, thus controlling risks.
Mid-term traders generally have clear entry and exit points, such as "stop-loss if it falls below the previous low, take profit if it rises to the target price." They do not pursue every bit of profit and will not be swayed by emotions.
Of course, mid-term trading also has risks, especially in volatile markets, which may lead to multiple "stop-losses." But as long as you maintain discipline and strictly implement strategies, in the long run, the win rate of mid-term trading will be significantly higher than that of short-term trading.
Three, long-term holding: be friends with time, and you are likely to make money.
You may have heard the term "Bitcoin believers." They do not trade coins but rather buy and hold them. Each time the market crashes, they are happy because they can "buy the dip" cheaply.
These people believe: the value of Bitcoin is continuously increasing in the long run, short-term fluctuations are just noise, and time will ultimately prove everything.
If you look at the history of Bitcoin, this is indeed the case:
2010: A Bitcoin worth a few cents.
2013: First broke the $1,000 mark.
2017: Rose to $20,000
2021: Surpassed $60,000
2025: Stabilizing at $100,000.
You will find that any time you buy at a historical high, as long as you hold for over four years, you will ultimately profit; Bitcoin will not disappoint any long-term holders.
The logic behind this is simple and straightforward:
1. The total supply of Bitcoin is limited, with strong inflation resistance.
Its supply is fixed; there will only ever be 21 million of them. This scarcity, combined with global demand to combat fiat currency devaluation, gives it value storage capabilities similar to "digital gold."
2. More and more institutions recognize Bitcoin.
Tesla, MicroStrategy, BlackRock, Fidelity, and other giants have successively held coins or pushed related products. Bitcoin is gradually "breaking out," moving from a fringe asset to mainstream allocation.
3. Time mitigates risk and improves win rates
Any asset has fluctuations in the short term, but in the long term, its value will get closer to its true level. As long as you choose the right direction, time is your best ally.
The greatest enemy of long-term investment is not the market, but whether you can persist.
When there’s a sharp drop, do you panic and liquidate? When in a bull market, do you become greedy and stay? These are the key factors that truly determine the outcome!
Four, what should ordinary people do?
You might ask: so what should I do? Don't touch short-term? How to learn mid-term? How to hold long-term?
My advice is as follows:
1. Beginners should avoid short-term trading at all costs.
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 becoming fodder for institutions.
2. Mid-term trading combines hot topics and cycles.
In mid-term trading, learn to watch the market rhythm, study hot concepts, and use key indicators for decision-making. Bitcoin will have several "rhythmic markets" each year, and being able to grasp one or two is already quite good.
3. Long-term positions + regular investment are the most stable methods for ordinary people.
For example, invest a fixed amount each month without looking at short-term fluctuations and persist for several years. History has proven that this method can outperform 90% of traders.
4. Always remember: controlling risk comes first
Regardless of which strategy, good position management is essential. Don't go all in, don't borrow, don't act impulsively.
Conclusion: Making money starts with understanding yourself!
The crypto space indeed has opportunities, but they are not for everyone. What appears to be the fastest way is often the slowest; what seems to be the most stable strategy may ultimately yield the greatest returns.
When investing in Bitcoin, the most important thing is not to predict the future, but to see the direction clearly amidst the fluctuations and to hold onto your original intentions in the face of temptations.
Don't rush to get rich, and don't think about timing the bottom like a genius. First, be friends with time, and only then will you be qualified to talk about profit returns.
