Rich people do not act recklessly and remain wealthy for a lifetime; poor people, if they do not act recklessly, will remain poor for a lifetime.
Last night, I sensed unusual market movements, so I decisively increased my position in Dogecoin and Solana at their lows, and sure enough, I saw a nice increase in the morning, validating the importance of intuition.
After a few days of sluggishness, the market has rebounded, especially as altcoins did not follow Bitcoin's decline, showing signs of independent trends.
On the 20th, altcoins were halved back to October price levels, causing retail investors to suffer significant losses, but now funds seem to have quietly flowed in, indicating that altcoins may be entering a new growth phase, and a true explosive altcoin season may be approaching.
If you had 1 million, what would you do?
Currently, the bank's five-year fixed deposit interest rate is only 1.55%, and the five-year savings bond interest rate is only 2%, which clearly cannot meet the interest demand of 4,000 yuan or even 10,000 yuan per month. So, is it possible to achieve greater appreciation in the cryptocurrency market? The answer is yes. Here are two different investment strategies: one conservative and steady, the other stimulating and aggressive.
Conservative and steady: Dollar-cost averaging in mainstream coins
The cryptocurrency market fluctuates frequently, and you can choose mainstream coins like Bitcoin and Ethereum for regular fixed investment.
Specific operations:
Assuming you invest 10,000 yuan in Bitcoin every month from this December to next December.
A total of 120,000 yuan will be invested over the year.
If Bitcoin rises to 150,000 dollars (about 1.05 million yuan) by next December, your assets will significantly appreciate.
Profit estimation:
Assuming the average purchase price is 110,000 dollars (about 770,000 yuan).
10,000 yuan per month can buy approximately 0.013 BTC.
After 12 months, you will hold approximately 0.156 BTC.
By December 2024, Bitcoin's market value is expected to be about 23,400 dollars (approximately 163,800 yuan).
Relative to the investment of 120,000 yuan, significant appreciation has been achieved.
Aggressive and stimulating: Rolling positions + position management
Rolling positions require keen market insight to enter during the consolidation phase after a sharp decline. It’s important to manage your positions well and control risk.
Specific operations:
Use leverage but only open small positions, for example, testing the waters with 50,000 yuan, opening a position of 10,000 yuan, using 10x leverage but only opening a 10% position (5,000 yuan margin).
Set a stop loss at 2 points; even in adverse situations, the maximum loss is 2%, which is 100 yuan, and the maximum loss in liquidation is 5,000 yuan.
Profit estimation:
If Bitcoin's price rises by 2 points, opening a position with 10x leverage on 10,000 yuan would increase the initial position's value by 2,000 yuan, resulting in an actual profit of 40%, which is 4,000 yuan.
A rise of two points means 10,000, and five points means 25,000, and this is only under 10x leverage.
In this case, the likelihood of achieving a doubling growth in the short term is relatively high.
Whether you choose a conservative dollar-cost averaging strategy or an aggressive rolling strategy, the key is to make wise choices based on your risk tolerance and investment goals. A conservative strategy is suitable for long-term investors, while an aggressive strategy requires higher market sensitivity and risk management skills.