Who understands, brothers! A few days ago, I came across someone saying "Enter with 200U, earn 7.6U in 7 days without doing anything, hedge with 3 cryptocurrencies to short, receive 23 bucks every day, and enjoy pig trotter rice freely for every meal." I directly slapped my thigh on the spot—who can resist such temptation? After all, a worker moving bricks in a day might not even earn as much, and it sounds like "hedging guarantees profit," it's like picking up money!
But as someone who has stepped into 108 pits and gone from losing 30,000 U to now steadily making a profit, my first reaction to this "high interest + hedging" combination is not excitement, but rather a check of the underwear in my pocket. Is this really that appealing? Today, I'll bare my heart and explain to you whether this kind of play is reliable and how to minimize risks if you want to try it!
Let's first break down the logic of this strategy: essentially, it's 'high-interest investment pool + hedging arbitrage.' First, put funds into a high-interest product of a certain ecosystem (claiming 200% annualized, with a 7-day return of 3.8 points), and then open short positions against the held currency to hedge against price fluctuations. Theoretically, no matter if the currency price rises or falls, you can steadily earn investment returns. It sounds seamless: 200 U divided among 3 currencies, each a little over 60 U, with a total return of 22.8 U over 7 days, worth over 160 in RMB. Just think about it, a bowl of pig's trotter rice every day, it makes my mouth water.
But I must pour a bucket of cold water: I fell into the same trap back in 2021! At that time, a certain platform promoted an investment with 180% annualized returns. I invested 5000 U and followed the trend to open a short position for hedging. As a result, on the 5th day, the platform suddenly restricted withdrawals, saying 'insufficient liquidity.' In the end, not only did I not get my returns, but I only recovered 30% of my principal. During that time, don't even mention pig's trotter rice; I could only afford to buy instant noodles in bags!
Today, I will give you 3 heart-to-heart practical suggestions; brothers who want to try must remember them, otherwise you might find yourself in a situation where 'you didn't get to eat the pig's trotter rice, and lost your underwear as well':
1. The 'invisible risks' behind high annualized returns are more than you think.
First of all, the 200% annualized return itself is abnormal! Normal mainstream ecological investments typically have an annualized return between 3%-15%. Anything over 30% raises questions, let alone 200%. Behind it, either the platform is using the money from new users to pay returns to old users (Ponzi scheme), or the currency itself has a significant volatility risk. Do you think hedging will solve everything? If the small currency you chose suddenly collapses to zero, the money earned from the short position won't even cover the loss of the principal! I once chose a niche currency; halfway through hedging, the currency was directly delisted, and I couldn't close the short position, suffering a huge loss!
2. Hedging is not a 'guaranteed profit buff.' If the operation goes wrong, you could lose double.
Many people think that 'opening a short position is all it takes,' which is a huge mistake! The core of hedging is 'position matching + precise timing': for example, if the currency in your investment pool rises, the short position will incur losses; if the currency drops, only then does the short position profit. However, high-interest investment pools often have a 'lock-up period.' If during this time the currency skyrockets, the money lost in the short position exceeds the investment returns, you'll be losing money! When I hedge now, I control the short position to within 50% of the investment principal and set profit-taking and stop-loss strategies; I absolutely will not open a short position blindly.
3. The capital ratio must be 'within one's means.'
Don't invest all your meal money and rent money! This kind of play is essentially high risk. Even if the operation is fine, the platform might have issues (like withdrawal restrictions or running away). When I engage in this kind of short-term investment, I always use no more than 10% of my idle funds. For example, if I have 10,000 U in idle money, I will only use up to 1,000 U to test the waters; even if I incur losses, it won't affect my life. Those who say '200 U to enter the market, earning thousands a month' are most likely trying to pull you in; if there were really such stable opportunities, would it come to you?
To be honest, the temptation of a bowl of pig's trotter rice every day is indeed great, but when it comes to investing, we can't just look at 'how fragrant the returns are,' we must also think about 'how toxic the risks are.' I've seen too many brothers get carried away by high annualized returns, ultimately unable to recover their principal, and instead, they end up in debt.
If you really want to try, remember these 3 principles: choose mainstream currencies (don't touch small currencies), use idle money with a small position, and choose ecosystems with historical stability (don't trust new platforms). Of course, if you want to know about my current 'low-risk arbitrage strategy' (annualized 20%-30%, very stable), follow me, Yangyang.
