In the cryptocurrency market, for the vast majority of investors, accumulating initial capital is a key step towards wealth growth. Growing from a few tens of thousands of principal to 1 million, the rolling warehouse strategy often becomes an effective way. Once having 1 million principal, the investment pattern will undergo significant changes. Even without using leverage, holding spot assets with a 20% increase can yield 200,000 in profits, which far exceeds most people's annual income levels. More importantly, successfully achieving the leap from tens of thousands to 1 million allows investors to gradually grasp the internal logic of wealth appreciation, and their mindset will mature, laying a solid foundation for subsequent investment operations.
Hello everyone, I am Brother Heng, specializing in cryptocurrency for five years, welcome to follow!!! I will analyze one by one below:
1. Core Points of Rolling Warehouse Operations
(1) Patiently Wait for Certainty Opportunities
The potential profits of rolling warehouse strategies are extremely rich; a few successful rolling warehouse operations can achieve tens of millions or even billions in returns. Therefore, investors must maintain sufficient patience and avoid blind operations. Only when there is a highly certain opportunity should one decisively implement rolling warehouse strategies.
(2) Accurately Grasp the Characteristics of Opportunities
High-certainty opportunities usually occur during the horizontal oscillation phase after the market has experienced a sharp decline, followed by a price breakout upward. 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. In cryptocurrency investments, following the trend is crucial; participating only when the trend is established can increase the probability of investment success.
(3) Clearly Define the Direction of Operations
In rolling warehouse operations, it is recommended to only choose the long direction. This is based on the characteristic of the long-term upward trend of the cryptocurrency market, while going long has advantages over going short in terms of risk control and psychological pressure.
2. Risks and Responses of Rolling Warehouse Strategies
Many investors have misunderstandings about rolling warehouse strategies, believing that their risks are extremely high. In fact, the risks of the rolling warehouse strategy itself are controllable; the real risk often comes from the improper use of leverage. Taking 50,000 as an example, if this 50,000 is investment profit and a position is opened when Bitcoin is at a price of 10,000, using a 10x leverage gradual opening model with only 10% of the position (i.e., 5,000 as margin), is actually 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 the Bitcoin price rises to 11,000, continuing to increase the position by 10% of the total funds and similarly setting a 2% stop loss, even with subsequent stop losses, the overall still maintains an 8% profit.
In practice, investors can choose an appropriate leverage multiple based on their risk tolerance. A 10x leverage can be used for rolling warehouses, and 1x or even lower leverage is also feasible. For example, using 2-3x leverage to capture two significant market movements can also achieve dozens of times returns. 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 total personal assets, and futures funds to one-tenth of spot funds, meaning that futures funds only account for 2% of total funds, and only select mainstream and stable currencies like Bitcoin for operation, thereby minimizing risks.
3. Capital Management: A Solid Guarantee for Investment Safety
Capital management is a core aspect of investment trading, and reasonable capital management can effectively mitigate investment risks. Taking personal investment as an example, keep the futures account funds at 200,000 USD, while the spot account funds are flexibly adjusted between 300,000 to 1,000,000 USD based on market opportunities. During the investment process, adhere to the principle of 'you can not make money, but you cannot lose money', regularly withdrawing a quarter or fifth of the profits from the futures account and saving them separately. Even if the futures account experiences liquidation, the spot investment returns can compensate, ensuring the stability of the investment portfolio.
For ordinary investors, it is recommended to use one-tenth of the spot funds for futures investment. For example, if the spot funds are 300,000, then the futures investment funds should be controlled at 30,000. Through multiple practices, gradually mastering investment laws while constantly summarizing experiences and lessons. If after multiple attempts the investment skills are still not mastered, one should stop losses in time to avoid blind investments.
4. Investment Strategies for Small Funds to Grow Large
In cryptocurrency investments, small fund 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 seeking overnight wealth often backfires. Small fund investors should focus on medium to long-term investments, achieving capital doubling through seizing major market trends.
Remember: Surviving in the cryptocurrency market is more important than making quick profits! Discipline is more important than being clever! Learning is more important than luck! I hope this article can help everyone to reap your share of profits in the cryptocurrency market as soon as possible.
