This is an article telling everyone how to make money in the cryptocurrency world. I often encounter fans asking for guidance on making money, but I have always refused. I do not lead people to trade cryptocurrencies, nor do I guide anyone in contracts, much less help anyone to make money. Today, I will only share a strategy for making money in the cryptocurrency world. If you find this article reliable after reading, you can proceed with your own trades; if you find it unreliable, just ignore it, as the gains and losses are yours alone to bear. People outside may lead you to make money and ask you to follow their trades, but they just want to take your commissions, while I refuse to let anyone follow my trades. Let’s cut to the chase. Six months ago, I conducted an experiment with my small account on my exchange using a 'contract long-short hedge strategy', with an investment of 3000 USDT, and so far, the profit has reached 230%.
3000 USDT turned into 10200 USDT. What is the contract long-short hedge strategy? Simply put, it involves opening a long position in Bitcoin and a short position in Ethereum. (Long means bullish, short means bearish) Both positions have the same leverage and size but involve different cryptocurrencies and directions. The approach: Use a capital of 3000 USDT to play, opening one long contract for Bitcoin at 20x leverage with 500 USDT, and one short contract for Ethereum at 20x leverage with 500 USDT. (Set to full margin) Based on past experience, we know that generally when Bitcoin rises, Ethereum will also rise, but the price movements of the two are different. For example, if Bitcoin rises by 3% and Ethereum rises by 2%, or if Bitcoin falls by 2% and Ethereum falls by 3%... The profit from the long-short strategy comes from the 'difference' between the two. For instance, if you go long on Bitcoin and short on Ethereum, and Bitcoin rises by 3% while Ethereum rises by 2%, you will earn 3% on the Bitcoin long position but lose 2% on the Ethereum short position, resulting in a profit of 1%. If you get the direction wrong, you only lose 1%, right? Don't be afraid. The core advantage of the contract long-short hedge strategy is that even if you open in the wrong direction, you won’t face a liquidation! The biggest fear when trading contracts is liquidation. Some may ask, what if Bitcoin, which you are bullish on, doesn't rise, but Ethereum, which you are bearish on, keeps rising, leading to an extreme one-sided market? Don't worry, you still have 2000 USDT set aside for margin calls, and you'll come back sooner or later! Why use only 500 USDT for each position with a 3000 USDT capital? It's to guard against one-sided markets. Over the years, when have you seen Bitcoin and Ethereum have significant opposing price movements? You can say their directions are generally consistent, especially since we still have 2000 USDT in reserve. What I’m saying might be hard for beginners to understand; only those who have traded contracts would grasp it.
Now in a bull market, the Ethereum short position has lost 6785 USDT, while the Bitcoin long position has made 12330 USDT. The difference here is the profit. Some say the 'difference' profit is too little; my friend, trading contracts in the cryptocurrency world is not about chasing extreme profits but about who can last longer. Often, those who chase short-term extreme profits end up losing everything, and the hedge strategy can also yield high profits, with a monthly return reaching an astonishing 40%. Isn’t that impressive? Later, I plan to open each position with 2000 USDT, 4000 USDT... is that not enough? The contract long-short hedge strategy is not particularly unique; its core advantage is to reduce some losses when you get the long or short direction wrong, thus achieving final profit. If you want to make money, you must first prepare to lose money and prevent losses. This is not a guaranteed profit; partners who tested the long-short hedge strategy also had losses. Their main reason for losing money is overthinking, constantly changing strategies, and letting greed overcome rationality, leading to incorrect directional judgments. To put it bluntly, they quickly cut losses when they lose and quickly take profits when they gain. Why has the strategy been profitable for me? Besides being Zen-like, the main reason is 'bullish on Bitcoin, bearish on Ethereum'! There is a very important experience here. In a bull market: Bitcoin must rise first to confirm the bullish direction, and then other coins will follow suit, allowing for early profits on Bitcoin long positions. In a bear market: Bitcoin must fall less than other coins, allowing for greater profits on other coins' short positions. Regardless of whether it's a bull or bear market, there’s always a way to profit. This is my winning strategy. Why do I want to be bearish on Ethereum? Ethereum has been weak for the past two years, so I must be bearish unless one day it shows a completely different trend. To play the long-short hedge strategy, you need a roughly accurate judgment of future trends and an understanding of the value of each coin at certain stages. Why choose Bitcoin and Ethereum for hedging? Because it's necessary to use two cryptocurrencies with not much difference in value for hedging! If you use Bitcoin and Shiba Inu, it’s easy to end up in a one-sided market. If Bitcoin rises, Shiba Inu may not, and if Bitcoin falls, Shiba Inu may plummet, which could lead to liquidation. Top coins can only hedge against top coins; top coins against garbage coins will only lead to liquidation. 'Long-short hedging' is just a strategy, not a 'guaranteed profit'; to make money, you also need to rely on your own experience and judgment. When you make the right call, it lets you profit; when you make the wrong call, it doesn’t let you lose that much.
I am Xiao O, a professional analyst and educator, a mentor and friend on your investment journey! As an analyst, the most basic thing is to help everyone make money. I will solve your confusion and help you avoid losses, speaking with strength. When you are lost and don't know what to do, follow Xiao O, and I will point you in the right direction#美国加征关税
