I want to earn 1 million in the crypto world in one year, and the answer is feasible. The key lies in strict trading discipline and practical operating methods. I will share a set of my personally tested effective minimalist trading strategies:
1. Split the funds into five equal parts: Regardless of the principal amount, divide it into 5 parts, using only 1 part for each trade (for example, if the principal is 10,000, use 2,000 each time).
2. Average down on price drops: Use 1 part of the funds to buy the cryptocurrency at the current price. If the price drops by 10%, add in 1 part.
3. Take profit on price increases: When the cryptocurrency price rises by 10% compared to the purchase price, sell 1 part of the holdings.
4. Repeat the process: Continue the steps of averaging down and taking profits until all funds are invested or all holdings are sold.
The advantages of this strategy are obvious: Even if the cryptocurrency price drops, averaging down in batches can continuously reduce costs. When all five parts of the funds are used up, the cryptocurrency price may have dropped nearly 50%. Unless there is an extreme market crash, such a situation is hard to occur, and there is no need to overly worry about short-term fluctuations.
In terms of returns, each sale can earn a price difference of 10%. Taking an example of 100,000 in principal, with 20,000 for each part, every transaction can earn 2,000, making the compounding effect quite considerable.
Of course, the strategy also has its drawbacks: a 10% volatility range is relatively large, which may lead to slow transaction execution. Funds may either be long-term idle or occupied by a single cryptocurrency, affecting efficiency.
However, this problem can be solved: First, choose cryptocurrencies with higher stability to reduce waiting time for fluctuations; second, when funds are idle, invest in financial products from platforms like CoinAn to earn additional income while waiting for price changes.
