When it comes to the myth of rolling over in the crypto circle, no one can bypass Bit King — the man who turned $40,000 in principal into $200 million through leveraged rolling.
Many say he was just lucky to catch a big bull market, but few understand: his real weapon is not leverage, but the compound interest thinking that lets profits 'generate profits.'
Today I will explain in the simplest terms: rolling over is not just simply adding to the position, but letting floating profits roll like a snowball, this is the true logic of small principal reversing the trend.
First understand: adding to the position with floating profit and rolling over, the difference is not in operation, but in the 'underlying logic' of making money.
Bit King once said: 'Many people treat adding to the position with floating profit as rolling over, but they are actually off by a magnitude of compound interest.' Let’s calculate this with a specific example: suppose Bitcoin’s current price is $10,000, you have $5,000 in principal, opening a long position with 10x leverage —
Scenario 1: What you think of as 'rolling over' is actually adding to the position with floating profit (linear growth).
Step 1: Build a position of $10,000 with $5,000, 10x leverage, the position is equivalent to $50,000.
Rising to $11,000 (up 10%), earn $5,000, and the account becomes $10,000.
You think 'the market is good, let's add to the position,' and invest another $5,000 of principal, total position becomes $15,000 × 10x = $150,000.
Rising again to $12,000 (another 10% increase), earn $15,000, the account now totals $25,000 including principal and profit.
This type of operation is like 'saving money to buy seeds,' earning money means buying more seeds, but each seed's yield is fixed, and the speed of making money follows 'the invested principal' in a steady linear growth. As Bit King said: 'Relying on adding principal to make money is exhausting and will never catch up with the trend.'
Scenario 2: Bit King's rolling operation (exponential growth).
Step 1: Similarly, build a position of $10,000 with $5,000, 10x leverage, position $50,000.
Rising to $11,000 (up 10%), earn $5,000, and the account becomes $10,000.
Key operation: do not close the position, but convert 'principal + profit' entirely into new principal — using $10,000 with 10x leverage, the position becomes $100,000.
Rising again to $12,000 (another 10% increase), this time earn $10,000 ($100,000 × 10%), the account directly becomes $20,000.
This is the core of rolling over: not adding new principal, letting every cent of floating profit become the next 'bullet.' Continue the cycle:
Rising to $13,000: using $20,000 to open a position, earning $20,000, account at $40,000;
Rising to $14,000: using $40,000 to open a position, earning $40,000, account at $80,000;
...
When Bitcoin rises to $20,000 (a total increase of 100%):
Floating profit adding to the principal totals $325,000 (with an additional $50,000 in principal);
Rolling over totals $5.12 million (only $5,000 in principal was invested from the beginning).Below is a manually calculated chart for a visual look. The $5,000 circled is the additional principal added from floating profit.
Why is the gap so large? Linear growth vs exponential growth, the difference is 'the magic of compound interest.'
Adding to the position with floating profit means 'adding principal when making money,' the speed of making money is 'previous principal × increase rate,' just like planting corn: if you harvest 100 kg, you plant another 100 kg, next year you harvest 200 kg, growth always follows 'investment.'
Rolling over is 'using profits as new principal,' the speed of making money is 'previous total funds × increase rate,' just like raising geese: one goose lays 10 eggs, using the eggs to hatch 10 geese, in the next round it can lay 100 eggs. The core of Bit King’s rise from 40,000 to 200 million is to turn every wave of bull market profits into the next wave of 'flocks of geese,' profits generate profits, the further you roll, the faster you make money.
This is the essence of compound interest: not wasting a single cent of floating profit (unrealized profit), letting the market's money help you make money. If you want to make big money with a small principal, it has never relied on 'investing more money,' but on making 'earned money' work more efficiently.
Rolling over is not for everyone; Bit King's three 'life-saving conditions.'
Bit King once said in an interview: 'Rolling over is a double-edged sword; used correctly, it is the wealth password, used incorrectly, it's an accelerator to liquidation.' He achieved $200 million not only because of the market but also based on these three strict conditions:
1. Must be a 'unilaterally rising bull market.'
Rolling over is most afraid of 'pullbacks.' For example, if Bitcoin rises by 10% and then falls by 5%, adding to the position with floating profit may just mean earning slightly less, but rolling over will have losses magnified by leverage due to the 'increasing position size.' In the 2021 bull market, Bit King continued to roll over only when Bitcoin's pullbacks did not exceed 5%; if pullbacks exceeded 8%, he decisively reduced his position. Remember: rolling over is only suitable for 'almost no pullback main uptrends,' such opportunities occur only in once every four years bull markets; playing rolling over in a volatile market is like giving away money.
2. Firm capital management: take profits and stop losses must be 'without emotions.'
Bit King has set strict rules for himself: if the increase in a single wave is less than 5%, he absolutely will not roll over (filtering small fluctuations); if the pullback exceeds 3%, he immediately reduces his position by half (locking in profits); if it falls below 5%, he directly liquidates (safety first). He once said: 'I’ve seen too many people roll over and earn 10 times, only to lose everything in one pullback; discipline is more important than the market.' Without strict take profit and stop loss, rolling over is just blindly gambling on the market, and you will lose everything sooner or later.
3. Absolutely do not add 'new principal,' only use floating profits to roll.
Many people, when imitating Bit King, cannot help but add principal, resulting in a completely messed-up mindset — wanting to add to the position when making money, wanting to supplement the position when losing, ultimately turning into 'investing more and more, losing more and more.' Bit King rose from $40,000 to $200 million without adding a single cent of new principal, relying on 'making money with the market's money.' He said: 'Once you add new principal, you change from 'risking profits' to 'risking principal,' your mindset collapses, and your operation must be wrong.'
Finally, I want to say: the formula for small principal to make big money, Bit King has already made it clear.
From $40,000 to $200 million, Bit King proved with real combat: the formula for small principal to make big money = compound interest thinking (rolling logic) + bull market conditions (unilateral rise) + correct operation (discipline execution). Missing any of these three conditions, don’t expect to reverse the trend through rolling over.
Remember Bit King’s words: 'The crypto world never lacks opportunities, what it lacks is the patience to let profits roll and the discipline to control risks.' The logic of rolling over is very simple, but few can master it — it tests not how well you understand technology, but whether you can maintain discipline in the face of huge profits and resist impulse in the face of pullbacks.
If the next bull market comes, if you can distinguish between 'adding to the position with floating profit' and 'rolling over,' and can adhere to these three conditions, perhaps the story of turning $5,000 into $5 million could also happen to you. But before that, learning to 'survive to wait for the bull market' is more important than anything else.
The core of trading has never been 'gambling,' but 'understanding.' Only by understanding the market can you operate with confidence; avoiding pitfalls allows you to make money steadily. Rather than hoping for 'getting rich overnight' every day, it’s better to learn the logic with me and let every cent of profit come in clearly.