Practical tips for doubling small funds: step-by-step strategy to turn 10,000 into 100,000: Many believe trading coins requires "inside information" or "accurate predictions," but actually, ordinary people can make money with simple discipline. I’ve summarized the “Five-Step Gradual Method,” suitable for all players with limited capital:
1. Split the funds into 5 parts; divide 10,000 yuan into 5 parts of 2000 yuan each, using only one part at a time and never touching the rest—this is to avoid the impulse of 'all in.'
2. Use 2000 yuan to test the waters.
Choose a coin you believe in and start by buying 2000 yuan worth of spot. Remember, beginners should never touch leverage; the fluctuations in spot trading are already enough to double small funds.
3. Add more funds after a 10% drop. If it drops 10% after buying, add another 2000 yuan. At this point, your cost is reduced by 5%, so as long as there’s a 5% rebound, you can break even, which will significantly reduce psychological pressure.
4. Take profits by selling half when it rises by 10%, regardless of how much it may rise afterward; first, sell half to lock in profits. For example, if 2000 yuan rises to 2200, sell 1000 yuan worth and even if the remaining 1000 drops back, you’ve at least made a profit of 100.
5. Use a cycle of operations to let profits roll. Use the money from taking profits to find new coins and repeat the previous steps. Using this method with 10,000 yuan, it’s not difficult to multiply it by 5-10 times in a year; the key is not to be greedy and be satisfied with earning 10% each time.
I’ve summarized my insights; the most important thing in trading coins is having a good mindset, while technical skills are secondary.
1. Never touch small altcoins.
Most altcoins in the crypto world are shrouded in mystery and can be tools for scamming inexperienced investors. Once they drop, they may likely go to zero, and declines of over 99% are not uncommon. Those with small market caps and little fame should never be attempted; be decisive in choosing mainstream coins.
2. Stay away from small exchanges.
Small exchanges always carry the risk of shutting down or disconnecting; at that point, the money inside can’t be withdrawn. It’s recommended to choose mainstream exchanges, and you can also spread funds across different mainstream exchanges to reduce risk. Currently, the main exchanges are Binance (BN) and OKX.
3. Rationally view the myth of hundredfold coins.
The stories of hundredfold or thousandfold coins are always alluring, but remember, such opportunities are rare and often come with huge risks. The era of tenfold or hundredfold returns in crypto is long gone, as major institutions and elites have entered the market. The big dividends are no longer there, so don't blindly pursue high returns while ignoring potential risks. In this market, being steady is more important than being aggressive; achieving a doubling of funds is already quite good. If beginners can avoid losses, they have already surpassed over 90% of people.
4. Don't put money in unknown wallets.
If you have a large amount of capital, consider keeping it in a wallet, but small wallets also carry the risk of scams. If you choose to use a wallet, be sure to carefully select a reliable one.
5. Choose an investment method that suits you; don’t play ultra-short contracts. The investment methods in the crypto world are varied, but not every type is suitable for you. The price fluctuations in the crypto market are extreme; it's not unusual for Bitcoin to drop 20% in a day, and altcoins can drop even more drastically. Choose the investment method that best suits your actual situation. For beginners, ultra-short trading is hard to control; holding coins might be a relatively safer choice, as it focuses more on long-term holding and value growth.
6. Always set stop-loss and take-profit levels.
Set goals for yourself; when the price drops to a certain level, decisively execute an exit strategy. When it rises to a certain level, sell decisively and don’t worry about how much it may rise afterward. Many people lose money in a bull market because they don’t take profits in time.
7. Don't invest all your funds in the crypto world as the risks are huge. Both entering and exiting funds carry risks; it is recommended to start with a small amount of disposable income to practice in the crypto world.
8. Find a reliable team and mentor. The crypto world has many traps, and over 99% of people are losing money. Find an experienced and reliable mentor; even if they can't guarantee profit, they can at least help you avoid many pitfalls. Trading in crypto essentially is a contest between retail investors and market makers. If you don't have cutting-edge news or firsthand information, you can only be scammed! If you want to strategize together and harvest profits from market makers, feel free to reach out to me. Like-minded individuals in the crypto world are welcome to discuss together~$ETH
