First learn to be 'steady', then talk about making money.
I still remember that night six months ago when I looked at the remaining 3000U in my account and told myself: either completely leave this market or completely change my strategy from scratch. Six months later, this number has turned into 1000万U. This is not bragging, nor is it luck, but a completely revolutionary trading mindset.
Too many people think of cryptocurrency trading as a gambling game, but I can clearly tell you: turning small funds into large ones relies on three things: position allocation logic, arbitrage discipline, and execution based on information asymmetry. You don't lack capital; what you lack is a path to follow.
Step 1: Blood Loss Division (1-7 days)
Most people’s liquidations are not due to poor skills, but because their hands are too greedy. I have seen too many beginners make a fatal mistake as soon as they enter the market—overtrading, losing all their principal within days.
My 3000U is divided like this:
2000U for spot, only selecting mainstream coins in the top 20 by market capitalization, but I will skip those that seem stable but are actually hidden traps (you know, some coins are high-ranked, but their liquidity or fundamentals may have issues). Only coins with high market cap and sufficient liquidity can reduce unnecessary risks.
800U reserved for arbitrage, which is the starting capital for the 'bloodsucking play' to be discussed later.
200U as liquidity, saved for critical moments, never participating in trades normally.
The core idea of this division is simple: divide the principal into 10 parts, using no more than one-tenth of the principal in a single trade.
Small funds should play slowly and earn slowly, do not go all in right away.
Step 2: Bloodsucking Arbitrage (8-30 days)
Learning 'brick-moving arbitrage' is the core skill for small funds to grow steadily. This is actually a low-risk technique for obtaining cryptocurrency returns.
I only focus on two key signals every day:
First, the price difference between the two exchanges is >1.5%, and second, the perpetual funding rate remains negative (for example, continuously below -0.02% for 12 hours).
The operation process is very simple: buy spot at exchange A, open a short position at exchange B. This way, not only can you eat the price difference, but also earn negative rate subsidies, and even have profits from volatility. I did this 8 times in a month, with the highest single order making 4273U.
Many people know this trick, but less than 5% actually do it. As long as you dare to do it, you can seize the money from those 5%. The market is cruel like this; cognitive and informational gaps are your ATM.
Step 3: Hunting Newcomers (31-90 days)
After my account broke 20,000U, I started exclusively trading 'new coin' contracts within 72 hours of going live. Why? Because during the initial phase, the market makers are most anxious, the system is most chaotic, and retail investors are most confused.
Some exchanges' liquidation engines may have short delays under extreme market conditions; I just focus on this window to place orders, drive up prices, and leave. I made 87% profit on that wave with this strategy.
This type of trading is a typical 'convex trading': high risk-reward ratio, medium success probability, low occurrence frequency, but once the opportunity is seized, the returns are substantial.
This is the key to rapidly growing small funds.
Why do most people go the wrong way?
1. The 'obvious pit' of contracts: the longer the time, the faster the blood loss.
Many people are addicted to high-leverage contracts, but this is like renting a supercar; you have to pay two types of rent: explicit funding rates and hidden liquidation risks. Taking 1x leverage as an example, if it remains flat for a year, the net value may only be 0.8. Funding rates are like a fine-toothed saw, day after day cutting away your principal.
2. The market hides 'zero rental leverage': spot + selection.
Smart people are using a combination of spot and selection. Spot is the ally of time; if you can hold on, you won’t be easily washed out; and selection is an invisible amplifier. In the same bull market, choosing the right targets is equivalent to having 3-5 times leverage, but with zero interest and zero liquidation risk.
3. Most people lack both patience and vision.
The biggest problem for retail investors: fantasizing about ten times overnight, unwilling to give the spot time to ferment slowly. At the same time, they won’t pick coins, only leverage, resulting in funding fees cutting them first, and then a pinning to supplement.
After a year, the interest has been paid off, the principal has returned to zero, and only the illusion of 'next time I’ll recover' remains.
Conclusion: Treat trading coins as a mathematical game.
I never understand: clearly, there is free leverage at hand, why do people insist on jumping into that contract dead end that can liquidate at any time?
Using spot as principal, using selection as leverage, using time as compound interest—this is the only correct answer with zero cost, zero liquidation, and positive expectation. This is also the core logic of my growth from 3000U to 10 million U in six months.
Stop fantasizing about doubling your money every day; first, manage your divisions well, learn arbitrage skills, and then patiently wait for those high-win-rate 'convex trading' opportunities.
This path is more reliable and longer-lasting than I imagined.
In this market, you don’t need to run fast; you just need to make fewer mistakes and survive long enough. Follow Xiang Ge to learn more first-hand information and precise points in the crypto world, becoming your guide in the crypto space; learning is your greatest wealth!#加密市场反弹 #美联储降息 $ETH
