Method One: Chase three 10x coins and you can relax?
Core Logic
There is an alluring basic theorem: In life, as long as you continuously invest in three 10x coins, you can achieve financial freedom. Specifically, if you prepare 10,000 yuan, through three rounds of 10x growth, you can grow from 10,000 to 100,000, then to 1,000,000, and finally reach 10,000,000. In other words, breaking down the goal of earning 10,000,000 into the task of finding three 10x coins and repeating the profitable operation 100 times in each 10x growth phase seems to make 10,000,000 easily attainable.
Real Dilemma
However, the difficulty of finding a 10x coin far exceeds expectations. The cryptocurrency market is filled with various currencies, and the market is highly volatile and uncertain. Many coins that claim to have potential end up either going to zero or remaining stagnant for a long time. For example, in 2024, a large number of new coins emerged in the market, with over 90% experiencing a price drop of more than 50% within three months, and those that can become 10x coins are extremely rare.
Moreover, even if one is lucky enough to find a 10x coin, accurately grasping the timing for entry and exit is not an easy task, let alone finding three in a row. Additionally, the so-called repeated 100 times profitable operation is nearly impossible to achieve in the rapidly changing cryptocurrency market, where every market situation is different, making it difficult to replicate successful experiences.
Method Two: Rolling position operation, is there a 'shortcut' from tens of thousands to 1 million?
Key Points of Rolling Positions
Patience is paramount: Once rolling positions are successful, the profits can be enormous, potentially earning tens of millions or even billions. Therefore, one must not operate casually and must wait for high-certainty opportunities.
Opportunity Judgment: High certainty opportunities usually appear after a sharp drop in cryptocurrency prices, entering a sideways consolidation phase, and subsequently breaking upwards. At this time, the probability of a trending market is relatively high, so it's essential to identify the key points of trend reversal and get in on time.
Operational Direction: Only conduct long positions.
Risk Analysis
Although some claim that rolling positions are much less risky than futures trading, the reality is not that simple. For instance, with a principal of 50,000 yuan, if one opens a position when Bitcoin is at 10,000, sets a 10x leverage, and uses a single position model, only opening 10% of the position (i.e., 5,000 yuan as margin, equivalent to 1x leverage) and setting a 2-point stop loss.
It may seem like a stop loss only results in a 2% loss (1000 yuan), but if the market trend is unfavorable and stop losses occur repeatedly, the principal will quickly shrink. Moreover, in actual operations, the cryptocurrency market is extremely volatile. Once extreme market conditions arise, such as a significant drop in Bitcoin's price in a short time, even with good position control, one may face liquidation due to insufficient margin.
Additionally, wanting to capture two 50% market rallies to earn 1 million requires a very high judgment of market trends. The market will not always develop as expected; uncertainty always exists. Also, believing that 100 times return relies on several multiples of growth, rather than on daily or monthly compounding, overlooks the powerful effect of compounding in long-term investments, emphasizing only multiple growth, which increases the difficulty and risk of operations.
Final Thoughts
In the cryptocurrency market, these two seemingly achievable methods for wealth leaps come with numerous insurmountable obstacles and risks. The cryptocurrency market is complex and ever-changing, filled with uncertainty and speculation. Behind the stories of overnight wealth are countless people who have lost their investments.
Investment requires rationality; one cannot be blinded by the fantasy of becoming rich overnight. It is crucial to fully understand the risks involved and treat one's principal with caution. After all, in this tempting market, preserving the principal is fundamental for long-term survival.
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