The "Foolproof Method" to Profit from Cryptocurrency: A Practical Strategy for Staying Calm During Crashes and Avoiding Regrets During Rallies
Core Strategy: Gradual Position Building + Mechanical Profit Taking
Target Audience
New investors with small capital
Office workers without time to monitor the market
Conservative players looking for steady profits
Capital Management Plan:
1. Divide the principal into 5 equal parts (for example, with 10,000 yuan, each part is 2,000 yuan)
2. Use the first part of capital (2,000 yuan) for initial position building
3. For every 10% price drop, add a part
4. For every 10% price increase, sell part to lock in profits
Practical Case Study: SHIB Trading Review
Trading Process:
First purchase price: $0.00002 (invested 2,000 yuan)
During a 40% price drop:
Add 2,000 yuan at a 10% drop
Add 2,000 yuan again at a 20% drop
Continue adding 2,000 yuan at a 30% drop
When the price rebounds to the cost price:
A total of 8,000 yuan invested
Average cost reduced by 35%
Final profit of 20% when exiting
Analysis of Strategy Advantages
1. Psychological Advantage
During a crash: Gradual position building alleviates panic
During a rally: Mechanical profit-taking avoids greed
No need to monitor the market throughout the process, reducing emotional interference
2. Risk Control
Maximum drawdown is controllable (based on 5 parts of capital, maximum loss is 50% of the principal)
Automatically achieves "buy low, sell high"
Avoids being trapped by one-time full investment
3. Profit Assurance
Lock in partial profits for every 10% price increase
Can profit multiple times in a fluctuating market
Basic profits can also be guaranteed in a one-sided market
Execution Key Points
1. Coin Selection Criteria
Choose mainstream coins (top 50 by market capitalization)
Avoid high-volatility small coins
Prefer projects with real application scenarios
2. Discipline Requirements
Strictly execute based on the 10% margin
Do not arbitrarily change the trading plan
Keep records of each transaction
3. Advanced Techniques
Adjust the number of parts (for larger capital, can be divided into 10 parts)
Adjust the profit-taking margin based on market conditions
Combine with overall market trends to improve success rate
Precautions
1. This strategy is suitable for fluctuating markets and slow bull markets
2. In extreme one-sided markets, adjustments are needed
3. It is recommended to practice with small capital for 3 months first
4. Maintaining a good mindset is key
This seemingly simple "foolproof method" actually contains three core elements of investment: capital management, risk control, and emotional management.
Stick to it for over a year, and you will find its effectiveness far exceeds various complex technical analysis methods.
Remember: In the cryptocurrency market, surviving longer is more important than making quick profits!
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