The methods of ordinary people in their 20s and 30s who earn 10 million in the cryptocurrency space. This article provides rich content from basic operations to core ideas, serving as a reference for experienced players, and is highly recommended for beginners with a weak foundation.
In summary, there are three points.
Strategies for small funds to turn around
High capital operation steadily profits
The core logic of digital currency investment.
By understanding the fan circle, we find that there are many ordinary office workers and even students in the cryptocurrency space who are eager to earn returns through investment. However, many people do not truly understand the methods of investing in cryptocurrencies.
Firstly, digital currency investment is a form of financial investment. Our goal is to double our capital and achieve sustainable profits within a certain period. Instead of hoping to get rich quickly from a single contract, we emphasize avoiding blind speculation, similar to gambling, and adopting a more robust strategy.
In addition to waiting for opportunities, traders need the ability to discern the size of opportunities. You cannot always trade with a light position nor overly heavy. Usually, you can operate with a moderate small position, and when a big opportunity arises, take a larger position.
For example, rolling positions are operations performed when significant opportunities arise. You cannot always roll positions, but even if you miss one time, it's okay because in a lifetime, if you successfully roll positions three or four times, you could accumulate millions or even tens of millions, enough for an ordinary person to join the ranks of the wealthy.
Rolling positions are suitable for small or medium-sized funds. Spot: Suppose you have only $1,000 today, and Bitcoin's current value is $30,000. You believe Bitcoin is about to rise. If you use $1,000 to buy in, when it rises to $36,000, you will earn $200. Because you only have $1,000, Bitcoin has to double for you to earn $200.
Collaborating with some stable bloggers might earn you some small money, but if you desire to get rich quickly, the goal for small capital should be contracts.
Suppose you believe Bitcoin will rise 20% five times; your $1,000 will earn $1,000. However, please note that contracts should not be played casually; making small bets also requires some skills.
In terms of rolling positions, you need to pay attention to the following points:
Sufficient patience; the profits from rolling positions are enormous. As long as you can successfully roll a few times, you can accumulate at least tens of millions to billions.
Therefore, do not roll positions easily; find opportunities with higher certainty.
High-certainty opportunities usually occur after a sharp decline followed by consolidation, then a breakout upwards. At this point, the probability of following the trend is quite high.
Identify the point of trend reversal; it's best to get on board at the very beginning.
Be patient and wait for opportunities, even if they come just a few times a month, just roll long.
Rolling position risks: The rolling position strategy is not high risk; the risk is much lower than the logic of opening futures orders.
Actually, rolling positions only require attention to these few points:
1. Sufficient patience; the profits from rolling positions are enormous. As long as you can roll successfully a few times, you can earn at least tens of millions to billions, so you shouldn't roll easily. Look for high-certainty opportunities.
2. High-certainty opportunities refer to those that occur after a sharp decline followed by consolidation, then a breakout upwards. At this time, the probability of following the trend is very high. Identify the point of trend reversal and get on board at the very beginning.
3. Be patient and wait for opportunities, even if they come only once a month or a few months, just roll long;
Suppose you only have $50,000; how do you start with this $50,000? First, this $50,000 should be your profit. If you are still at a loss, it is advisable not to consider rolling positions.
The concept of rolling positions itself does not carry risk; not only is there no risk, but it is also one of the correct approaches to futures trading. The risk lies in leverage.
A 10x leverage can roll; 1x can do the same, while I usually use two or three times. Grabbing two times is not the same as having dozens of times in profit, right? Moreover, you can use 0.x times. What's the relationship with rolling positions? This is clearly your own choice regarding leverage; I have never said to operate with high leverage.
I have always emphasized that in the circle, you should only invest one-fifth of your money, and only invest one-tenth of your cash in futures. At this point, futures funds only account for 2% of your total funds, and leverage should only be two or three times, only trading Bitcoin, which can be said to reduce the risk to a minimum.
Extremely low.
Would you feel heartbroken if you lost 200 out of 10,000?
Overall, making small bets for big gains, enduring loneliness, finding opportunities, and learning position management— as long as you are not a star, you will always have opportunities. Opportunities are for those who think; relying purely on luck, whatever you earn will eventually be returned to zero.
Many people have misconceptions about trading. For example, they think that small funds should engage in short-term trading to grow their capital. This is a complete misconception. This way of thinking is merely trying to exchange time for space, seeking to get rich overnight. Small capital should instead focus on mid to long-term investments to grow. Always remember, the smaller the capital, the more one should adopt a long-term approach, relying on the power of compounding to grow, rather than engaging in short-term trades for small profits.
If you invest $10,000 in Bitcoin with a leverage of 10 times using a gradual position mode, only opening 10% of the position.
This is equivalent to using only $5,000 as margin. In reality, this is equivalent to 1x leverage, setting a 2% stop-loss. If you hit the stop-loss, you would only lose 2%, which is $1,000. Compared to those who get liquidated, this loss is relatively small.
If your judgment is correct and Bitcoin rises to $11,000, you continue to open 10% of your total capital and set a 2% stop-loss. If the stop-loss triggers, you still made an 8% profit. Where's the risk? Isn't that a big risk? By analogy, if Bitcoin rises to $15,000, you can successfully increase your position, and with a 50% market movement, you should be able to earn around $200,000. Capturing two such market movements could lead to around $1 million. About compound interest: It's important to clarify that simple compound interest does not exist; 100 times is earned through two 10 times, three 5 times, or four 3 times, not through a daily or monthly 10% to 20% compound interest. This claim is unrealistic.
The above not only includes operational logic but also involves the core method of trading: position management. As long as you understand position management, it's basically impossible to lose everything.
Moreover, I have seen countless unsuccessful cases in sunny weather, all of which share a common point. In summary, it's just one word: 'Greed.' Greed can be both good and bad. I believe that in most cases, the bad outweighs the good. If you tend to be quite 'greedy,' then I hope you keep my words in mind when you feel greedy, and I hope it can help you.
In terms of time, from the moment a person reaches the end of life in a few decades to the entire universe collapsing into a black hole in hundreds of millions of years, everything ends with death.
From birth to death, we average only about 30,000 days, and many cryptocurrency players have only around 10,000 days left.
Live meaningfully, freely, or be loyal to your beliefs and values. Be yourself, do as you please, and live freely. It is at that moment that we truly possess freedom and understand the true meaning of life!
In other words, everything in this world will ultimately die. What we need to do is earn money to enjoy life, not let earning money become a burden.
The process of money becomes a constraint, a shackle, a source of anxiety.
What good is greed? A hundred years later, will those still belong to you?
The basic principles of Dow Theory combined with the actual situation in the cryptocurrency space can be summarized in the following six points:
First, the average price incorporates and digests all factors. Fundamentals, policies, news, and capital—all of these can affect supply and demand, and all of this will be directly reflected in the market, which ultimately digests and absorbs through price changes.
Second, the market has three types of trends. Dow categorizes trends into three types: major trends, necessary trends, and short-term trends.
The major trend is like the tides of the sea, belonging to long-term trends, similar to the cyclical seasons of the market, where bull and bear cycles have no beginning or end.
Character Y three
The important position is that the short-term trend is a ripple, referring to subtle fluctuations that have a high degree of uncertainty and change rapidly.
Third, the major trend can be divided into three phases. The first phase is the accumulation phase, akin to yin and yang, stating that when the market reaches its end, although everyone is bearish, it has already fallen to its lowest point. At this time, the main force begins to accumulate stock in batches.
The second phase is the bullish attack phase, where positive news begins to emerge, and most retail investors with some technical knowledge gradually enter the market, causing prices to start rising.
The third phase is the climax sprint, where major media outlets begin to flood the market with good news, boldly predicting further price increases. Retail investors actively buy in, and no one wants to sell, all fearing they might miss this once-in-a-lifetime opportunity to make money. However, in reality, the main force that bought at the bottom has already started to offload.
Fourth, various average prices must mutually verify each other. For example, the combined rise of Bitcoin and mainstream coins must exceed the peak of the previous trend to be deemed a large-scale bull market! Similarly, if the combined drop of Bitcoin and mainstream coins falls below the neckline of the high-level consolidation phase in the bull market.
Fifth, trading volume must validate the trend. Dow believes that volume is in the second position of technical analysis. When prices move along with the major trend, trading volume should also increase accordingly.
Sixth, only after unmistakable reversal signals occur can we determine that a given trend has ended. A significant trend has inertia and generally continues to move in the main direction for a while longer, so it is necessary to wait for trend confirmation, such as a head-and-shoulders pattern confirming a break below the neckline to be considered a trend reversal.
Dow Theory is a macro technical analysis system aimed at capturing the largest segment of significant market movements, essentially the most rewarding part of the fish's belly.
Its advantage lies in determining the major trend, but its drawbacks are also evident; signals are usually delayed, often missing 20-25% of profit potential.
