Cryptocurrency Rolling Positions: The 'Wealth Snowball' and Deadly Traps Under High Leverage

Rolling positions essentially leverage profits to increase positions, with the core logic being to let profits 'snowball', but it can also exponentially amplify risks.

Operational Logic: A Compounding Game from 'Small Bets' to 'Heavy Positions'

The essence of rolling positions is to use profits to expand chips, taking futures trading as an example:

1. Initial Stage: Open a long position with 100 EOS and 20x leverage. If the price rises from $2 to $2.1, closing the position can yield 200 EOS.

2. Rolling Stage: Invest all 200 EOS into a long position. If the price rises to $2.205, the position can increase to 400 EOS.

3. Ideal Outcome: If the price continues to rise (e.g., to $150), the returns far exceed the fixed positions of ordinary futures, and the compounding effect is astonishing.

Deadly Risks: The 'Gambler's Game' Where One Mistake Can Lead to Zero

The high returns of rolling positions are inevitably accompanied by high risks, which are far greater than ordinary futures:

• No Buffer for Risks: Every rolling position puts all profits at stake, equivalent to 'betting the entire account'. In a bull market, one can easily be blinded by the fantasy of getting rich, and once the market 'plunges', there is no buffer for any positions, resulting in instant loss of all previous gains.

• Luck Cannot Be Reproduced: There was an investor who, relying on the BCH market, rolled from 50,000 to 3 million in a week, but this was a coincidence under extreme market conditions; no one can accurately judge the market forever, and mistakes will come sooner or later.

• Leverage Amplifier: The inherent futures leverage, after multiple rollings, may lead to actual risk exposure being dozens of times the initial capital, far exceeding ordinary investment products.

Core Insights and Recommendations

• Clear Risk Levels: Rolling operations > Cryptocurrency Futures > Cryptocurrency Spot = Commodity Futures > Stocks, with risks at the top of the cryptocurrency investment chain.

• Discipline in Operations is Paramount: Even with accurate market judgment, it is recommended to limit rolling positions to 2-3 times, take profits when available, and avoid greed.

• Do Not Ignore the Threshold: Newcomers lacking K-line analysis ability, reliable information channels, and risk control awareness who blindly participate in rolling positions are equivalent to 'giving away money', making them easy targets for being harvested. #市场过度杠杆已被出清 $BTC $ETH