Crypto contracts are like gambling, even more addictive than drugs! As someone who has been through it, I faced three liquidations in one year, with debts of 8 million, then spent three years repaying the debt and regained a net worth of tens of millions. Using this method in the crypto space makes earning money as easy as drinking water; the crypto market is like a cash machine!
If you also want to treat trading cryptocurrencies as a second source of income, wish to share in the crypto pie, and are willing to invest time in learning and growing, then you shouldn't miss this article. Read it carefully; every point is the essence of the crypto space.
The eight fundamental principles of contract trading (must-learn for beginners)
1. The risk of each trade must not exceed 10% of the trading capital, meaning 10% of the trading capital. Beginners are advised to keep it between 2%-5%!
2. Once you enter the market, you must not close positions blindly due to a lack of patience. Market movements take time to unfold. Until the market proves your actions wrong, you must have enough confidence and patience.
3. You must follow your plan and must not overtrade.
4. After making a correct trade with profits, use stop-loss and take-profit adjustments as guarantees, and boldly seek greater profits until the trend changes.
5. After entering the market, do not casually cancel your stop-loss orders. Your entire trading process follows you throughout your trading life, and it is a risk control process, so after entering, you must set protections. Never trade naked.
6. Avoid adding costs after a successful trade, i.e., refrain from increasing positions.
7. Do not casually switch from long to short positions; this is a high-skill operation.
8. When buying and selling becomes effortless, avoid casually increasing your stakes; the probability of making mistakes at this time is very high because you become complacent.

So how can small capital be turned into large capital?
Here we must mention the power of compound interest. Imagine if you have a coin, and its value doubles every day; after a month, its value will become astonishingly high. On the first day, the value doubles, the second day it doubles again, and so on, leading to astronomical results. This is the power of compound interest. Although it starts as small capital, after a long time of continuous doubling, it can grow to tens of millions.
For friends currently looking to enter the market with small capital, I suggest focusing on big goals. Many people believe that small capital should engage in frequent short-term trading to achieve quick appreciation, but it's actually more suitable for mid to long-term investments. Instead of aiming for small daily profits, one should focus on achieving several times growth with each trade, using multiples and exponential growth as metrics.
Regarding positions, one must first understand how to diversify risks and not concentrate all funds in a single trade. You can divide your capital into three to four parts, using only one part for each trade. If you have 40,000, split it into four parts and use 10,000 for trading. Secondly, leverage should be used moderately; personally, I suggest not using more than 10x on major coins and not more than 4x on altcoins. Furthermore, dynamic adjustment is necessary; if you incur losses, supplement with equal amounts of external funds, and if you make profits, extract them appropriately. The goal is to avoid losses. Lastly, you should increase your positions, but this is only under the condition that you are already in profit. As your capital grows to a certain extent, you can gradually increase the amount for each trade, but avoid adding too much all at once, transitioning slowly.
Potential coins are what most people want to acquire during a bull market, but due to various reasons, it may not go as planned. There might be lesser-known coins that everyone overlooks, or prices may rise after selling, or drop after buying. For projects that promise hundredfold returns, they are often hard to come by, which is why more people are willing to focus on mainstream coins, such as BTC and ETH, hoping to gain the most basic dividends in the crypto space.
So how to find hundredfold coins?
Using market capitalization rankings to select coins is a method that many people rarely consider. In simple terms, we choose suitable tokens from the top 100 and invest in them. The top 100 ensures that the market capitalization of the tokens is not too low, making it safe for large capital entry. Some small projects might only require a little capital for the main force to pull up the price, but if you discover and buy them, it could lead to a rush for those tokens, potentially causing the main force to abandon the project. Therefore, the advantage of selecting from the top 100 is that the main forces are less likely to give up on the project due to a small group of people rushing to buy.
This also solves some potential negative factors. So how should we choose?
Here we follow three viewpoints:
First, the project should be among the top 100 because new projects generally enter the top 100 gradually, rather than jumping directly into it. Therefore, this process surely involves the main force in market making and price pulling.
Secondly, it should be new projects from the last two years. Here, we must emphasize that they are new projects because older projects may have already gone through one round of speculation, leading to larger sell pressures, making it difficult to rally again.
Thirdly, the project should have a good background. This background includes the project team, total supply, circulation, and token distribution. Essentially, there should not be much sell pressure or hidden dangers, which is also a necessary due diligence step in project review.
Since the coins in the top 100 typically follow a pattern of going up first and then down, it means that new coins often see their market capitalization rise constantly during a bull market, while older coins experience a downward trend. The most intuitive example is the rankings of the top ten. In previous bull markets, coins like Ripple, Dogecoin, EOS, Litecoin, etc., have all been in the top ten or even the top three, but many have since fallen below the top ten or even the top 100, while coins like TON and KAS have gradually moved from outside the 100 into it, and they are all new faces.
The top ten and even the top hundred need to continuously innovate, which is also an important criterion for our selection. Through these three steps, we can filter out good coins worth paying attention to. Currently, notable mentions include KAS, which is a mining coin with continuously rising market capitalization and has gradually come up; miners are optimistic about its performance, and it offers good returns for investors, complying with the new coin criteria from the last two years. TON is a relatively hot project this year, and its token market capitalization has soared into the top 100, meeting the requirements of being new and having a good background. Similar coins include SUI, APT, ARB, and OP, but the current market environment is poor, leading to suppressed prices.
Others may meet some criteria, but we also need to filter them out, such as the following coins:
PEPE, WIF, etc.: As meme tokens, they are subject to heavier speculation, meaning they often rise purely through hype and may experience violent price fluctuations due to market turmoil. Therefore, if you seek stability, it is advisable not to choose such MEME tokens. There are also some popular strong tracks that I have organized for everyone, and I suggest you bookmark them! (Wherever there's heat, there's hot money.)
1. SOLANA track JTO: Low market cap potential in the SOL ecosystem. WIF: The new favorite of SOL, with unlimited potential! RAY: The rising star of SOL, not to be missed!
PYTH: An oracle, comparable to LINK. JUP: A decentralized exchange in the SOL ecosystem, with trading volume not inferior to UNI.
2. BRC20 track ORDI: Essential for the big coin ecosystem. SATS: Potential. RATS: High consensus.
3. MEME track PEPE: The new darling of the MEME world, gaining momentum!
SHIB: A legend in MEME, popularity unwavering!
BOME: A new force in MEME, rapidly gaining traction!
BONK: The leading meme in the SOL ecosystem.
WIF: The miracle leader.
4. AI artificial intelligence track AGIX: A leader in AI, with a promising future!
FET: An AI dark horse, with broad prospects!
WLD: A new force in AI, worth paying attention to!
ARKM: Ultraman investment, relatively low market cap.
5. RWA track ONDO: A standout in the RWA field, a top investment choice!
POLYX: A rising star in RWA, not to be underestimated!
TRN: A popular project in RWA, with unlimited potential! RIO0: An RWA dark horse, with a promising future!
Let me share a set of my own practical strategies developed over many years, achieving an average success rate of 80%, which is a considerable achievement in the crypto trading world.
I can say that I have used 80% of the methods and techniques available in the market. The most practical in real-world trading—MACD strategy—is essential for both short-term trading and swing trading, and it's also the simplest and most practical short-term strategy, applicable even on contracts.$BTC #币安HODLer空投ERA