In the cryptocurrency space, for the vast majority of investors, accumulating initial capital is a key step towards wealth growth. Increasing from tens of thousands to 1 million often makes the rolling position strategy an effective approach. Once reaching 1 million of capital, the investment landscape will change significantly. Even without leverage, holding spot assets can yield a profit of 200,000 with a 20% increase, which far exceeds the annual income level of most people. More importantly, during the successful transition from tens of thousands to 1 million, investors can gradually master the internal logic of wealth appreciation, and their mindset will mature, laying a solid foundation for subsequent investment operations.
Hello everyone, I am Brother Liang, focused on crypto for ten years, welcome to follow!!! Below is a detailed analysis:
1. Core points of rolling position operations
(1) Patiently wait for certain opportunities
The potential profits from the rolling position strategy are extremely substantial; just a few successful rolling operations can achieve profits of tens of millions or even hundreds of millions. Therefore, investors must maintain sufficient patience and avoid blind operations. Only when there are high-certainty opportunities should they decisively implement rolling positions.
(2) Accurately grasp the characteristics of opportunities
High-certainty opportunities usually occur during the sideways fluctuation phase after a sharp market drop, followed by a price breakout. At this time, the probability of the market forming a trend is high, and investors need to accurately judge the key points of trend reversal and decisively enter the market. In cryptocurrency investing, following the trend is crucial; participating only when the trend is established increases the probability of investment success.
(3) Clarify the direction of operations
In rolling position operations, it is recommended to only choose to go long. This is based on the characteristic of the long-term upward trend in the cryptocurrency market, and going long has advantages in risk control and psychological pressure compared to going short.
2. Risks and responses of the rolling position strategy
Many investors misunderstand the rolling position strategy, believing it to be extremely risky. In fact, the risk of the rolling position strategy itself is controllable; the real risk often comes from improper use of leverage. Taking a capital of 50,000 as an example, if this 50,000 is investment profit, and a position is opened at a price of 10,000 for Bitcoin, using a 10x leverage incremental position model, only 10% of the position (i.e., 5,000 as margin) is used, which is equivalent to 1x leverage, with a stop loss set at 2 points. Even with a stop loss, the loss would only be 2% (1,000); if the judgment is correct and Bitcoin's price rises to 11,000, continue to increase the position by 10% of the total capital and also set a 2% stop loss. Even with subsequent stop losses, the overall profit can still be maintained at 8%.
In actual operations, investors can choose a suitable leverage multiple based on their risk tolerance. A 10x leverage can be used for rolling positions, while 1x or even lower leverage is also feasible. For example, using 2-3x leverage to seize two larger market movements can also achieve dozens of times the return. At the same time, it is recommended that investors strictly control the proportion of futures investment funds, limiting cryptocurrency investment funds to one-fifth of their total assets, with futures funds accounting for one-tenth of cash funds, meaning futures funds only account for 2% of total capital, and only trade mainstream and stable cryptocurrencies like Bitcoin to minimize risks.
3. Capital management: A solid guarantee of investment safety
Capital management is a core aspect of investment trading; reasonable capital management can effectively mitigate investment risks. Taking personal investment as an example, keep futures account funds at 200,000 USD and adjust spot account funds flexibly between 300,000 to 1,000,000 USD based on market opportunities. During the investment process, adhere to the principle of 'it’s okay not to make money, but not to lose money,' and regularly withdraw one-fourth or one-fifth of the profits from the futures account and save them separately. Even if the futures account experiences a liquidation situation, the profits from spot investments can help cover losses, ensuring the stability of the investment portfolio.
For ordinary investors, it is recommended to use one-tenth of the cash funds for futures investment. For example, if the cash funds are 300,000, the futures investment funds should be controlled at 30,000. Through multiple practices and continuous summarization of experiences and lessons, gradually grasp the investment rules. If after multiple attempts the investment key points are still not mastered, losses should be cut promptly to avoid blind investment.
4. Investment strategies for small funds to grow large
In cryptocurrency investing, small capital investors generally have misconceptions, believing that they can quickly achieve capital growth through short-term trading. However, this mindset of exchanging time for space and pursuing overnight wealth often backfires. Small capital investors should focus more on medium to long-term investments, realizing capital doubling growth by seizing major market movements.
Remember: surviving in the cryptocurrency space is more important than making quick profits! Discipline is more important than intelligence! Learning is more important than luck! I hope this article can help you reap your share of profits in the cryptocurrency space as soon as possible...
