What is the essence of rolling positions in the cryptocurrency market?

The essence of rolling positions in the cryptocurrency market is a high-risk, high-reward gamble.

It can bring astonishing returns not because of any special techniques, but simply due to the strategy of increasing positions on unrealized gains—keeping the position in a high-risk environment for an extended period, thus amplifying potential returns.

In general trading, after opening a position, if the price moves in a profitable direction and once it leaves the cost price to enter the profit zone, the risk decreases rapidly.

However, rolling positions are different. Profitability does not reduce risk; on the contrary, by constantly increasing the position, it maintains a state of high leverage and high volatility.

This extreme risk management approach is the fundamental reason why rolling positions can achieve high returns.

In trading markets, the law that risk and return are proportional is a hard rule.

When you see someone making hundreds or even thousands of times their investment on a single trade, it’s important to be aware of the significant risk of total loss lurking behind; conversely, someone may earn millions in a single trade, but considering their capital scale, it may just be an operation that is relatively low risk and suited to their situation.

Thus, the key to trading is a profound understanding of risk; one cannot focus solely on returns. Only by balancing risk and reward can one navigate the market steadily.