In the cryptocurrency space, for the vast majority of investors, accumulating initial capital is a key step toward wealth growth. Increasing from a few thousand to $1,000,000, the rolling warehouse strategy often becomes an effective means. Once holding $1,000,000 in capital, the investment landscape will change significantly. Even without using leverage, holding spot assets with a 20% increase can yield $200,000 in profit, which far exceeds the annual income level of most people. More importantly, successfully achieving the leap from a few thousand to $1,000,000 allows investors to gradually grasp the internal logic of wealth appreciation, and their mindset will mature, laying a solid foundation for subsequent investment operations.
2. Core Points of Rolling Warehouse Operations
(1) Patiently Wait for Certain Opportunities
The potential profits of rolling warehouse strategies are extremely substantial; a few successful rolling warehouse operations can achieve returns of tens of millions or even hundreds of millions. Therefore, investors must maintain sufficient patience to avoid blind operations. Only when highly certain opportunities arise should rolling warehouses be decisively implemented.
(2) Accurately Grasp Opportunity Characteristics
The so-called highly certain opportunities usually appear during the sideways fluctuation phase after a market crash, followed by a price breakout. At this time, the probability of the market forming a trend is relatively high, and investors need to accurately judge the key points of trend reversal and decisively enter the market. In cryptocurrency investment, following the trend is crucial; participating only when the trend is established can increase the probability of investment success.
(3) Clearly Define Operational Direction
In rolling warehouse operations, it is recommended to only choose to go long. This is based on the characteristic of the long-term upward trend in the cryptocurrency market, and going long has advantages in risk control and psychological pressure compared to going short.
3. Risks and Responses of Rolling Warehouse Strategies
Many investors misunderstand rolling warehouse strategies, believing they carry extremely high risks. In fact, the risks of rolling warehouse strategies themselves are controllable; the real source of risk often comes from improper use of leverage. Taking $50,000 as an example, if this $50,000 is investment profit, and a position is opened when Bitcoin is priced at $10,000, using a 10x leverage incremental position model, only using 10% of the position (i.e., $5,000 as margin), it is equivalent to 1x leverage, with a 2-point stop loss set. Even if a stop loss occurs, the loss is only 2% ($1,000); if the judgment is correct and Bitcoin's price rises to $11,000, continue to increase the position by 10% of the total funds, and similarly set a 2% stop loss. Even if a subsequent stop loss occurs, the overall profit can still be maintained at 8%.
In actual operations, investors can choose appropriate leverage multiples based on their risk tolerance. 10x leverage can be used for rolling warehouses, while 1x or even lower leverage multiples are also feasible. For example, using 2-3x leverage, capturing two larger market movements can also achieve dozens of times returns. At the same time, it is recommended that investors strictly control the proportion of futures investment funds, keeping cryptocurrency investment funds at one-fifth of personal total assets, with futures funds accounting for one-tenth of spot funds, meaning futures funds only account for 2% of total funds, and only choose mainstream and stable cryptocurrencies like Bitcoin for operations, thus minimizing risk.
4. Capital Management: A Solid Guarantee for Investment Safety
Capital management is a core aspect of investment trading; reasonable capital management can effectively mitigate investment risks. Taking personal investment as an example, keeping futures account funds at $200,000, while flexibly adjusting spot account funds between $300,000 and $1,000,000 based on market opportunities. In the investment process, adhere to the principle of 'not making a profit is acceptable, but not losing money' and regularly withdraw and separately save a quarter or fifth of the profits from the futures account. Even if the futures account experiences a liquidation situation, it can be compensated through the profits from spot investments, ensuring the stability of the investment portfolio.
For ordinary investors, it is recommended to use one-tenth of the spot funds for futures investment. For example, if the spot funds are $300,000, the futures investment funds should be controlled at $30,000. Through multiple practices and continuously summarizing experiences, gradually master the laws of investment. If after multiple attempts the investment essentials are still not grasped, one should promptly cut losses to avoid blind investment.
5. Investment Strategies to Grow Small Funds
In cryptocurrency investments, small fund investors generally have misconceptions, believing that short-term trading can quickly achieve capital growth. However, this mindset of exchanging time for space in pursuit of overnight wealth often backfires. Small fund investors should focus more on medium to long-term investments, achieving capital doubling growth by seizing major market movements.
If you want to seize this bull market, it's definitely too late to learn and sell on the go; it's best if someone can guide you to quickly get started.
