A survival guide in the cryptocurrency world, dedicated to you who are willing to slowly become rich
I started with a principal of 50,000, experienced two rounds of bull and bear markets, and ultimately achieved an account breakthrough of 40 million. Today, I won't talk about hollow theories, but will share the core mindset of rolling positions that I have personally verified. In the cryptocurrency world, a day is like ten years, but what truly changes fate are often just a few key decisions.
1. The essence of rolling positions: betting on trends with profits, not betting on luck with capital
Rolling positions is not a 'floating profit all-in', but a compound interest game after trend confirmation. My definition is very simple:
In a one-sided trend, use realized profits to add positions, allowing the snowball to grow larger, while keeping the principal safe at the bottom.
For example (using Bitcoin as an example):
Initial position: Capital of 100,000, only take 5% (5,000 yuan) to open a position, 10 times leverage, stop-loss set at 2%.
If the direction is wrong and the stop-loss is triggered, only lose 100 yuan (0.1% of total capital);
If it rises to $11,000, extract 50% of the profit for additional positions, and only use profits for each additional position while locking the principal.
A trend with a 50% gain may roll out a profit of 200,000 to 300,000.
Key point:
The risk source of rolling positions is leverage, not the strategy itself. I often use 2-3 times leverage; high leverage is a suicide weapon;
Only act when the overall trend is clear (such as a weekly breakout or a breakout after a sharp decline), and observe 90% of the choppy market with a light position.
Two, Golden Timing for Rolling Positions: Just need to seize three or four times in a lifetime;
I never frequently roll positions; I only act in three high-win-rate situations:
Breakthrough after long-term consolidation (for example, Bitcoin breaking through previous highs after months of low-volume consolidation);
Buying the dip during a bull market (for example, stabilizing after a 30% pullback in a bull market, with moving averages realigning to bullish);
Weekly level key point breakthrough (for example, confirming after breaking historical resistance).
Counterexample:
Rolling positions in a choppy market, repeatedly getting slapped in the face;
Adding positions against the trend (for example, continuously averaging down in a downtrend) will definitely result in liquidation.
Three, Iron Rules of Risk Control: Staying alive is more important than making quick money;
Stop-loss is a lifeline:
Each position must have a stop-loss; I often use the ATR indicator to set a dynamic stop-loss line;
After a loss, enforce a 24-hour cool-off period to avoid emotional trading.
Position management is key:
Total funds divided into three parts: short-term arbitrage (10%), trend positions (20%), and spot currency holding (70%);
Contract funds should not exceed 10% of spot funds; even if liquidation occurs, the foundation is not harmed.
Lock in profits in batches:
Once floating profits exceed the principal, immediately withdraw 50% of profits to the spot account.
Remaining profits should use a trailing stop to protect gains and avoid profit withdrawal.
Four, How to Start with Small Funds: The path from 50,000 to 1 million;
If small funds want to grow quickly, they must give up the fantasy of 'earning 10% daily' and focus on capturing 1-2 major trends annually:
Phase One: Use a capital of 50,000, wait for a clear opportunity (like Bitcoin breaking through previous highs), open a position not exceeding 10%, and control leverage within 3 times;
Phase Two: After making a profit, do not increase the principal; only roll profits. Three times the return turns into 150,000; the next same operation can reach 450,000;
Phase Three: After reaching 1 million, mindset and strategy change completely—Even if spot trading has an annualized return of 20%, it is already the salary ceiling for ordinary people.
Remember:
Do not touch small token contracts; focus on Bitcoin and Ethereum;
Stay away from 'teachers leading trades'; your own trading system is the ultimate weapon.
Five, Mindset Section: Making money relies on logic, keeping money relies on character;
Counteracting human nature: It's easy to get inflated after a big gain, and anxious to recover after a big loss—at this time, you must force a break;
Accept imperfection: The rolling position win rate may only be 30%, but one success can cover ten losses;
Long-termism: 80% of profits in the crypto world come from 20% of bull market time; during other times, you must endure loneliness.
Final reminder
Rolling positions are not a money-printing machine, but a trend betting tool with controllable risks. If you cannot strictly enforce discipline, it is better to invest in spot buying. The harsh truth of the crypto world is that most people do not lose to the market, but lose to themselves.
My personal principle:
Only roll long, not short (the probability of making money is higher in a bull market);
Never go all in, even if you are 99% sure;
Before each trade, ask yourself: If I lose all this money, can I still live well?
I hope this mindset can help you avoid detours. The bull market is still ongoing, but only those who survive can laugh last.
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