If you only have 10,000 yuan in hand, can you make 1 million in the cryptocurrency market within a year?
My answer is yes, but you need to use the right strategy.
I would like to share a simple yet very practical trading strategy that I have been using:
1. Divide your available funds into five equal parts. If you have 10,000, split it into five parts and use 2,000 for each trade.
2. Use one portion of funds to buy a cryptocurrency at the current price.
3. If the price of the cryptocurrency drops by 10%, buy another portion.
4. When the price of the cryptocurrency rises by 10%, sell one portion.
5. Repeat the above steps until all funds are used up or all cryptocurrencies are sold.
With this strategy, once you buy in, you don't have to worry even if the price drops, because we will continue to buy when the price falls. In fact, if all five portions of funds are used up, the price has already dropped by nearly 50%. Unless there is a market crash, the price won't drop that fast.
From a profit perspective, each time you sell, you can achieve a 10% profit. For example, with a total fund of 100,000, if you use 20,000 each time, then each sale will yield a profit of 2,000.
However, this strategy also has certain issues. A 10% fluctuation is relatively large and may make trades harder to execute, requiring longer waiting times. This can affect the efficiency of fund usage, as the funds may remain idle for long periods or be tied up in certain cryptocurrencies.
However, this issue can be resolved by narrowing the fluctuation range. For example, you can choose to buy more stable cryptocurrencies and invest in Binance financial products when funds are idle. This way, you can earn additional income while waiting for price movements.
