This article will introduce four simple and easy-to-understand small-cap strategies that require only small capital participation, needing an exchange account + cryptocurrency wallet.
Small-capital investment amplification technique for cryptocurrency:
(Ranked from high to low risk)
Open high-leverage contracts
European print meme coin
DCA quality cryptocurrencies
Lulz airdrop
Open high-leverage contracts
The highest risk; you could lose everything in a minute, but basically, the risk is controllable, with the maximum risk being the loss of capital.
Q: What is a contract?
A: The concept is similar to futures in stocks; instead of directly buying and selling cryptocurrency, you bet against a counterparty in the market, settling profits and losses based on price. You can open high-leverage positions, going long if bullish and short if bearish.
The focus is on being able to open high-leverage positions + the maximum risk is losing everything. For small-capital players, this is a strategy that offers high potential profits with limited downside loss.
Q: What is leverage?
A: Leverage means amplification; simply put, how many times do you want to amplify? Invest $500 as capital for trading; how many times do you want to amplify? Five times amplification = trading $2500 with $500 capital, twenty times amplification = trading $10000 with $500 capital.
In cryptocurrency, as long as you pass a basic quiz (confirming understanding of basic knowledge and risks), you can often open leverage of over a hundred times. For example:
Buying Dongdong Coin, if it rises 30% in a day, with a hundred times leverage = 30% x 100 = 3000%. You can earn 30 times in one day, amplifying your capital! Of course, leverage also magnifies risk; with a hundred times leverage, if it falls by 1% > 1% x 100 = 100%, you would have lost everything.
Leverage carries high risk; it's usually not recommended for beginners to open high leverage, but this is a method more suited for small capital. The risk is losing everything, but the losses are also smaller with low capital. If the timing is right, the profit multiple can be high, so there's no need to go all in every time. Even with small capital, you can split it into several parts, allowing for more opportunities to make mistakes.
Key focus of this strategy:
Timing: Enter only when expecting significant volatility.
Watch your margin; the maximum risk is losing your margin, so control it within a bearable range.
European print meme coin
Meme coins are one of the features of the crypto space, which can be a special asset driven by community sentiment, even though it may have no intrinsic value. During crazy times, they can rise dozens or even hundreds of times within days.
The rise is astonishing, but the maximum risk is also losing everything, and it is relatively suitable for small capital strategies.
On January 18, two days before his inauguration, U.S. President Trump released his meme coin $TRUMP on-chain.
The difference from the previous strategy 'Open high-leverage contracts' is:
The rise of meme coins themselves is already astonishing, so there's no need to open leverage.
Meme coins necessarily require substantial profits; to participate earlier is key, as good opportunities are mostly on-chain (waiting for exchanges to list is already quite late).
It feels a bit like buying a lottery ticket, but unlike the lottery, which is completely random, meme coins are influenced by community and narrative, so the more sensitive you are to the market, the higher your win rate.
DCA - Gradually accumulate and amplify capital
The first two strategies are more high-risk speculation, while DCA is a more long-term and stable value investment strategy.
DCA = Dollar Cost Averaging, which is commonly referred to in Chinese as fixed investment. If you have a small capital but a fixed income to invest, and you want to invest in higher quality cryptocurrencies for the long term rather than just betting on price movements, then using a fixed investment approach to gradually accumulate more capital is very suitable.
Although dollar-cost averaging is slower, as long as you extend the time frame, investing in quality coins over several years still has the opportunity to yield hundreds or even thousands of percent returns, and your capital can gradually accumulate during this process.
Key focus of this strategy:
Choose quality targets with long-term potential; there's no need to put all your eggs in one basket. You can regularly invest in multiple options at the same time.
Choose trustworthy platforms; once you've accumulated to a certain scale, it's advisable to diversify. All platforms have risks; do not put all your assets on one platform.
Persist in the long term
Lulz airdrop
A way to participate even with zero capital; rather than being a financial investment, it feels more like earning rewards through physical effort. Airdrops are a feature of the crypto space: regardless of market conditions, there are always people willing to give you money.
Simply put, the project side rewards certain behaviors by directly giving away coins, which can be understood as a marketing activity or user benefits. It usually targets early users, such as those who start using the testnet, assist in community promotion, introduce more friends, play games... and various other interactions with the project agreement.
Since you need to put in effort to receive airdrops, there is often a saying in the crypto space related to lulz airdrops, which can be divided into two main categories:
Zero-lulz: No monetary cost is required, you participate at zero cost, such as playing games, completing daily tasks, engaging socially, etc.
Non-zero-lulz: A small monetary cost is required, for example, interacting with agreements to boost trading volume incurs gas fees, pre-staking interactions require locking assets, and some may cost to mint NFTs, etc.
Since it's small-capital, naturally, try not to miss zero-lulz opportunities.
Q: How much can you earn from airdrops?
A: The range is large; after working half a day, airdrops can yield only a few U to thousands or even tens of thousands of U, depending on the airdrop distribution mechanism and market narrative.
Although exchanges sometimes offer airdrop opportunities, the vast majority of airdrop opportunities are on-chain.
Key focus of this strategy:
Participating in airdrops requires a lot of on-chain interactions, and there are many phishing and scam opportunities, so be sure to be careful of scams.
Effort is important, but choice is even more crucial. With limited time and energy, select airdrop opportunities that have more potential.
But you should try not to miss zero-lulz opportunities (unless there's risk involved).
