What is rolling warehouse? How to operate?

Rolling warehouse is a high-risk, high-reward investment strategy. Unlike regular compound interest, rolling warehouse emphasizes reinvesting profits from each cycle to achieve exponential growth.

Assuming you have 5000 yuan in principal and use 10x leverage:

The current price of BTC is 10000 yuan. You build a position of 5000 yuan, holding 0.5 BTC. When BTC rises to 11000 yuan, a 10% increase, you have a profit of 5000 yuan on paper.

You then add another 5000 yuan to buy 0.45 BTC (since the price has risen to 11000 yuan).

When BTC continues to rise to 12000 yuan, another 10% increase, your total assets are 25000 yuan (two 5000 yuan principals plus three 5000 yuan profits).

This is called floating profit addition. Of course, the leverage remains unchanged, but the average cost is raised.

Many teachers who do not understand rolling warehouse only keep telling you to increase leverage to roll the warehouse. You can block them because continuously increasing leverage only increases the risk of liquidation.

By repeatedly cycling this operation, you can achieve good returns, just like accelerating in a car; the growth is stable, with each increase being the same percentage.

Rolling warehouse utilizes every market fluctuation for compound reinvestment, achieving exponential wealth growth, but the risks also increase correspondingly. Investors need to have a deep understanding of the market and operate cautiously.