I have been using a simple but very practical strategy for trading cryptocurrencies:

1. Divide the funds on hand into five equal parts. For example, if you have $10,000, divide it into five parts and use $2,000 for each transaction.

2. Use one of the funds to buy a currency at the current price.

3. If the price of the currency drops by 10%, buy another one.

4. When the price of the currency rises by 10%, sell one.

5. Repeat the above steps until all funds are used up or all coins are sold.

Under this strategy, once you buy, there is no need to worry even if the price of the currency drops, because we will continue to buy. In fact, if all five funds are used up, the price of the currency has at least fallen by nearly 50%. Unless there is a big market waterfall, the price of the currency will not fall so fast. From the perspective of income, each sale can bring a 10% profit.

Take a total fund of 100,000 as an example. If 20,000 is used each time, then each sale will earn $2,000. However, this strategy also has certain problems. A 10% fluctuation is relatively large, which may make it difficult to complete transactions, and thus require a longer wait. This will affect the efficiency of fund use, because funds may be idle for a long time or occupied by individual coins.

However, this problem can be solved by reducing the fluctuation range. For example, you can choose to buy a currency with high stability and choose Binance financial products for investment when the funds are idle. This way, you can get extra income while waiting for the currency price to change.