This article will introduce four simple and easy-to-understand small capital strategies that can be participated in with small funds, requiring an exchange account + cryptocurrency wallet.
Small capital investment cryptocurrency capital amplification technique:
(Ranked from high to low risk)
Open high-leverage contracts
Euro-Indian Meme Coin
DCA Quality Coins
Airdrop
Open high-leverage contracts
The highest risk, potentially losing everything in one minute, but basically the risk is controllable; the maximum risk is losing all the capital.
Q: What is a contract?
A: The concept is similar to futures in stocks; instead of directly buying and selling cryptocurrencies, you bet against a counterparty in the market, settling profits and losses based on price. High leverage can be opened, you can go long if you are bullish and short if you are bearish.
The key is to open high multiples of leverage + the maximum risk is losing everything. For small capital players, this is equivalent to a strategy with extremely high profits above, but limited losses below.
Q: What is leverage?
A: Leverage means magnification. Simply put, how many times do you want to amplify? If you invest $500 as capital for trading, how many times do you want to amplify? Five times = use $500 capital to trade $2500, twenty times = use $500 capital to trade $10000.
In cryptocurrencies, as long as you pass a basic quiz (to confirm understanding of basic knowledge and risks), leverage can often be opened to over a hundred times, for example:
Buying Dongdong Coin, rising 30% in one day, with a hundred times leverage = 30% x 100 = 3000%, making a profit of 30 times in one day, capital magnified! Of course, leverage also magnifies risks inversely; if you open a hundred times leverage and drop by 1% > 1% x 100 = 100%, your capital is gone.
Leverage carries high risk; it's generally not recommended for beginners to open high leverage, but this is also a method more suitable for small capital. The risk is losing everything, but with small capital, the loss is also relatively small. When correct, the profit multiples are high, so there's no need to go all-in every time. Even with small capital, it can be divided into several portions, giving more chances to make mistakes.
Key points of this strategy:
Timing; enter when expecting large fluctuations.
Pay attention to margin; the maximum risk is losing the margin, so control it within a bearable range.
Euro-Indian Meme Coin
Meme coins are one of the characteristics of the crypto world. This can be considered a special asset that may have no intrinsic real value but is driven by the community. During crazy times, it can rise dozens or even hundreds of times within days.
The increase is astonishing, and the maximum risk is also losing everything, which is relatively suitable for small capital strategies.
On January 18, just two days before his inauguration, U.S. President Trump launched his meme coin $TRUMP on-chain.
The difference from the previous strategy of 'opening high-leverage contracts' is:
The increase in meme coins is already astonishing, and there is no need to open leverage.
To achieve significant profits from memes, you need to participate earlier; good opportunities are almost all on-chain (waiting for exchange listing is already too late).
It feels a bit like buying a lottery ticket, but unlike the lottery which is completely random, meme coins are influenced by community and narratives. The more sensitive they are to the market, the higher the win rate.
DCA - Gradually accumulate and amplify capital
The first two strategies are more high-risk speculation, while DCA is a more long-term and stable value investment strategy.
DCA = Dollar Cost Averaging, which is commonly known in Chinese as regular fixed investment (regular investment). If you have a small capital but a steady income to invest and want to invest long-term in better-quality cryptocurrencies instead of just betting on price fluctuations, then using a regular fixed investment approach to gradually accumulate more capital is very suitable.
Although the fixed investment speed is slower, as long as the time is extended, investing in quality coins for several years still has the opportunity to obtain hundreds or even thousands of percent returns, and the capital can gradually accumulate during this process.
Key points of this strategy:
Choose quality targets with long-term potential; there's no need to put all your eggs in one basket; you can regularly invest in multiple ones.
Choose a trusted platform, and after accumulating to a certain scale, it is advisable to diversify; platforms have risks, so do not put all assets on one platform.
Long-term persistence
Airdrop
Even with zero capital, it’s a way to participate. Rather than saying this is a financial investment, it’s more like earning rewards through labor. Airdrops are a characteristic of the crypto world: regardless of market conditions, there are always people willing to give you money.
Simply put, the project side rewards certain behaviors by directly distributing coins, which can be understood as a marketing activity or user benefit. Usually targeted at early users, such as those who start testing on the testnet, help the community spread and promote, introduce more friends, play games, etc., and various interactions with the project agreement.
Because you have to put in labor to get airdrops, the crypto world often refers to airdrops as 'hustle airdrops,' which can be divided into two main categories:
Zero-cost: No monetary cost is required; participate at zero cost, such as playing games, completing daily tasks, social participation, etc.
Non-zero-cost: Requires some monetary cost, such as interacting with agreements to increase transaction volume requiring gas fees, pre-stored interactions requiring asset locking, or some requiring expenses to mint NFTs, etc.
Since it's small capital, zero-cost opportunities should be tried not to miss.
Q: How much money can be earned from an airdrop?
A: The range is large; after hustling for half a day, an airdrop could yield only a few dollars or up to thousands or even tens of thousands of dollars, depending on the airdrop distribution mechanism and market narratives.
Although there are sometimes airdrop opportunities on exchanges, the vast majority of airdrop opportunities are on-chain.
Key points of this strategy:
Participating in airdrops requires a lot of on-chain interactions, with many phishing scams; be sure to be cautious of scams.
Hard work is important, but choice is more important; time and energy are limited, so select airdrop opportunities with more potential.
But try not to miss zero-cost opportunities (unless there's risk).