This article will introduce four simple and easy-to-understand small-capital strategies that require only small funds to participate, needing an exchange account + cryptocurrency wallet.
Small-capital investment strategies for amplifying cryptocurrency capital:
(Ranked from high to low risk)
Open high-leverage contracts
Euro-Asian meme coin
DCA quality coins
Zero airdrop
Open high-leverage contracts
The highest risk, potentially losing everything in a minute, but basically, the risk is controllable; the maximum risk is losing the capital.
Q: What is a contract?
A: The concept is similar to futures in stocks; you do not directly buy or sell the cryptocurrency itself, but instead bet against a counterparty in the market, settling profits and losses based on price. You can open high-leverage positions; bullish positions can go long, while bearish positions can go short.
The key is that you can open high-leverage positions + the maximum risk is losing all, which means for small capital players, it is a strategy with extremely high profits on the upside but limited losses on the downside.
Q: What is leverage?
A: Leverage is amplification; simply put, how many times do you want to amplify? If you 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 you understand the basic knowledge and risks), leverage can often be opened to over a hundred times, for example:
Buying Dongdong coin, which rises 30% in a day, with a hundred times leverage = 30% x 100 = 3000%, yielding 30 times profit in a day, amplifying the capital! Of course, the reverse risk also amplifies; if you open a hundred times leverage and the price drops by 1% > 1% x 100 = 100%, you will lose everything.
Leverage carries high risks; it is generally not recommended for beginners to open high leverage, but this is also a method that smaller capital can use better. The risk is losing everything, but if the capital is small, the loss is also smaller. When the timing is right, the profit multiple is high, so you don't need to go all in every time; even with small capital, it can be split into several parts, allowing for more chances to make mistakes.
Key focus of this strategy:
Timing; enter the market when expecting significant fluctuations.
Pay attention to margin; the maximum risk is losing all your margin, so control it within a manageable range.
Euro-Asian meme coin
Meme coins are one of the unique features of the crypto world; they can be special assets driven by the community, which may have no intrinsic real value but can skyrocket dozens or even hundreds of times in a few days during craziness.
The increase is astonishing, and the maximum risk is also a total loss, making it relatively suitable for small capital strategies.
On January 18, two days before taking office, former US President Trump launched his meme coin $TRUMP on-chain.
The difference from the previous strategy 'open high-leverage contracts' is:
Meme coins themselves have already increased significantly, so there's no need to open leverage.
Meme coins must have significant profits; to participate earlier is crucial, as good opportunities are almost all on-chain (waiting for exchange listings is already too 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; the more sensitive you are to the market, the higher your win rate.
DCA - Gradually accumulate to amplify capital
The first two strategies are more oriented towards high-risk speculation, while DCA is a more long-term and stable value investment strategy.
DCA = Dollar Cost Averaging, which is commonly known in Chinese as regular fixed investment. If you have a small capital but a fixed income to invest and want to invest long-term in higher-quality cryptocurrencies rather than just gamble on price fluctuations, then using a regular fixed investment approach to gradually accumulate more capital is very suitable.
Although the regular fixed investment is slower, as long as the time is extended, investing in quality coins for several years still has the opportunity to yield hundreds or even thousands of percent returns, and the capital can gradually accumulate in the process.
Key focus of this strategy:
Choose quality targets with long-term potential; you don't need to put all your eggs in one basket; you can regularly invest in multiple targets.
Choose a trusted platform; after accumulating to a certain scale, it is advisable to diversify. All platforms have risks; do not put all your assets on one platform.
Persist long-term
Zero airdrop
Even with zero capital, there is a way to participate; rather than being a financial investment, it feels more like earning rewards through labor. Airdrops are a unique feature of the crypto world: no matter if the market is good or bad, there are always people willing to give you money.
Simply put, the project party rewards certain behaviors by directly giving away coins, which can be understood as a marketing activity or user benefit. Typically aimed at early users, such as those who start using it from the testnet, assist in community promotion, introduce more friends, play games, etc., all kinds of interactions with the project protocol.
Since effort is required to obtain airdrops, there is often talk of zero airdrops in the crypto world, which can be broadly divided into two categories:
Zero effort: no monetary cost is required; you can participate at zero cost, such as playing games, completing daily tasks, social participation, etc.
Non-zero effort: you need to spend a little monetary cost, such as paying gas fees for interacting with protocols or locking assets for pre-deposits, and some require spending to mint NFTs, etc.
Since it's small-capital, you should try not to miss zero opportunities.
Q: How much can you earn from airdrops?
A: The range is very wide; after working hard all 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 have 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; there are many opportunities for scams and phishing, so be very careful about fraud.
Effort is important, but choice is more important; time and energy are limited, so select airdrop opportunities with greater potential.
But try not to miss zero opportunities (unless there's a risk).
Keep an eye on CFX, ENA, ETH, SOL, XRP.
