This is a sharing about arbitrage thinking and trading mentality in the cryptocurrency circle, with the core points summarized as follows:
### 1. Core Logic of Arbitrage Thinking
1. **Essence**: Low risk + hedging, prioritize capital preservation, avoid being 'stuck' due to fluctuations in active cryptocurrencies.
2. **Operational Methods**:
- **Borrowing Coins**: Use DeFi lending (Ethereum chain, etc.), exchange pledge borrowing tools to borrow the required active cryptocurrencies to participate, only pay interest, avoid price fluctuation risks, can invest all funds (e.g., borrowing BNB for new projects).
- **Hedging**: Buy the cryptocurrency while simultaneously shorting an equivalent amount (without leverage), offsetting gains and losses, only pay funding rates; used when borrowing coins is difficult, relatively complex.
### 2. Trading Mentality Adjustment Strategies
1. **Loss Response**: Stop loss as planned, analyze calmly, do not hold on to positions due to 'loss aversion'.
2. **Copy Trading Decision**: First check if the profitable trades of others fit your own system, avoid blindly following due to 'fear of missing out'.
3. **After Continuous Profits**: Do not be hijacked by dopamine, maintain positions, and rationally judge using probability models.
4. **Position Emotion**: Set alerts and take breaks, do not be anxious due to micro fluctuations, view the market from 'God's perspective (patterns), global perspective (cycles), and third-party perspective (observer)'.
5. **Systematic Continuous Stop Loss**: Check if the market exceeds the applicable range of the strategy, avoid 'cognitive dissonance' by holding on stubbornly.
(Note: The risks in the cryptocurrency circle are extremely high, subject to changes in policies, market fluctuations, etc. The above is only theoretical logic and does not constitute investment advice; participation requires cautious risk assessment)
