This is an article that tells everyone how to make money in the cryptocurrency market.

I often encounter fans asking for help to make money, but Tianji has always refused. Tianji doesn't help people trade cryptocurrencies, doesn't guide people in contracts, and certainly doesn't help people make money.

Today, I just want to share a money-making strategy in the cryptocurrency market. If you find the article credible, you can go ahead and trade according to it; if not, just ignore it, as profits and losses are yours to bear.

When outsiders claim they can help you make money and want you to follow their trades, they're just looking to take your commission, while Tianji refuses to let anyone follow their trades.

Okay, enough small talk, let's get straight to the results.

Six months ago, Brother Liang conducted an experiment with a small account on his exchange using the 'contract long-short hedging strategy'; the investment principal was 3000U, and as of now, the profit has reached 230%.

3000U has turned into 10200U.

What is the contract long-short hedging strategy?

Simply put, one order goes long on Bitcoin and another goes short on Ethereum. (Long means bullish, and short means bearish.)

Two orders with the same multiplier and position, different cryptocurrencies and directions.

Method: Use a principal of 3000U to trade, opening a long position of 500U in Bitcoin at 20x leverage, and a short position of 500U in Ethereum at 20x leverage. (Set to full margin)

From past experience, we know that generally when Bitcoin rises, Ethereum will also rise, but the price movements of the two coins can differ; for example, Bitcoin rises by 3% while Ethereum rises by 2%, or Bitcoin falls by 2% while Ethereum falls by 3%...

The long-short strategy earns from the 'difference' between the two.

For example, you go long on Bitcoin and short on Ethereum.

If Bitcoin rises by 3% and Ethereum rises by 2%, then your long position in Bitcoin gains 3%, and your short position in Ethereum loses 2%, the 1% difference is your profit.

If you open in the wrong direction, you only lose 1%, right? Don't be afraid; the core advantage of the contract long-short hedging strategy is that even if you open in the wrong direction, you won't get liquidated!

The biggest fear when trading contracts is liquidation.

Someone asked, what if the bullish Bitcoin doesn't rise, but the bearish Ethereum keeps rising, leading to an extreme one-sided market situation?

Don't worry, you still have 2000U left for margin calls, you'll come back sooner or later! Why use only 500U of a 3000U principal? It's to guard against one-sided market trends.

After so many years, when have you seen Bitcoin and Ethereum have significant opposite price movements?

You could say the directions are generally aligned, not to mention we still have 2000U in reserve.

What you're saying is probably hard for beginners to understand; only those who have traded contracts would know.

(Screenshot of Brother Liang's long-short hedging)

Currently in a bull market, Brother Liang's short position on Ethereum has lost 6785U, but his long position on Bitcoin has gained 12330U; the difference is the profit.

Some say the 'difference' in profit is too small. Brother, trading contracts in the cryptocurrency market isn't about chasing huge profits; it's about who can last longer. Those who chase short-term profits often end up losing everything, and the hedging strategy can also yield high profits, with monthly returns reaching an astonishing 40%. Isn't that significant?

Later on, Brother Liang plans to open 2000U, 4000U for each order... isn't that still not enough?

The contract long-short hedging strategy isn't anything special; its core advantage is to reduce some losses when your long or short view is wrong, thus achieving eventual profit.

To make money, one must first be prepared to lose money and prevent losses.

This isn't guaranteed to make a profit; even partners testing the long-short hedging strategy have lost money. Their main reason for losing is overthinking, constantly changing strategies, and letting greed overcome rationality, leading to incorrect directional judgments.

To put it plainly, it's 'cut losses quickly if you're losing, and take profits quickly if you're making money.'

Why is Brother Liang making money?

Besides being laid-back, the main reason is 'bullish on Bitcoin, bearish on Ethereum'!

There is a very important experience here.

In a bull market: Bitcoin must rise first to confirm the bull market direction before other coins can follow, allowing the Bitcoin long position to make money first.

In a bear market: Bitcoin must fall less, while other coins fall more, allowing the short positions on other coins to yield higher profits.

No matter if it's a bull or bear market, there's always a profit.

This is Brother Liang's winning strategy.

Why does Brother Liang want to short Ethereum?

Ethereum has been weak for the past two years; it must be shorted, unless one day a completely trend-reversing market appears, then it can be longed.

Using the long-short hedging strategy requires a roughly accurate judgment of future trends and an understanding of each cryptocurrency's value at certain stages.

Why choose Bitcoin and Ethereum for hedging?

Because you must use two cryptocurrencies with similar values for hedging! If you use Bitcoin and Shiba Inu, it can easily lead to one-sided market trends. If Bitcoin rises, Shiba Inu doesn't rise; if Bitcoin falls, Shiba Inu plummets, which can lead to liquidation.

Top cryptocurrencies can only hedge against other top cryptocurrencies; top cryptocurrencies against junk coins will only lead to liquidation.

'Long-short hedging' is just a strategy, not a 'sure profit'. To make money, one must rely on their own experience and judgment. When your judgment is correct, it helps you make money; when your judgment is wrong, it won't let you lose that much.