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Secrets of rollover in the crypto world from 500,000 to 5,000,000: Strictly adhere to these three iron rules, plus 20% of lesser-known tricks.
In the crypto world, successfully rolling over from 500,000 to 5,000,000 is not an unattainable dream. I have personally verified this twice with solid position management strategies. This is by no means a motivational cliché, but rather a position management game based on mathematical logic. There are only three core points, yet most people stumble at the second hurdle.
Rule 1: Precise layout, lock in high risk-reward positions
At the beginning of a bull market, focusing on mainstream coins like BTC and ETH is a wise move. After multiple practical verifications, a 5x leverage can be considered the golden ratio. Taking October 2023 as an example, I decisively built a position in BTC while also allocating 5x contracts, keeping the average cost around 24000. When the price breaks through the key resistance level on a weekly chart, such as before the ETF approval this January, it is an excellent time to increase your position. Additionally, there is a key operation that must be remembered: once profits exceed the principal, withdraw the principal immediately. For example, when your 500,000 successfully doubles to 1,000,000, decisively withdraw 500,000 to secure your gains.
Rule 2: Ladder Take Profit, Let the Profits Run
Adopt a tiered profit-taking strategy to allow profits to grow fully. Every time it increases by 20%, move the stop-loss line up to the cost line. For example, when your profit grows from 100,000 to 120,000, promptly raise the stop-loss to 100,000. At the same time, reserve 30% of your position as a safety cushion, so that regardless of how the market changes, such as in extreme scenarios like 312, 519, you can survive the storm.
Rule Three: Anti-human nature operations, timely reset positions.
As the account funds grow, it is important to adjust the leverage ratio in a timely manner. Every time the account funds double, reduce the leverage by one tier. For example, when the funds reach 1 million, lower the leverage from 5 times to 3 times; when it reaches 2 million, lower it to 2 times. In addition, when the position of mainstream coins exceeds 2 million, be sure to allocate 20% of the funds to stablecoin mining, which can both earn additional income and avoid losses caused by impulsive actions.
Finally, the 20% of tricks that I want to reveal are the key. When to enter the altcoin market and how to cleverly use the futures funding rate for arbitrage, these strategies act like accelerators, enabling your funds to quickly soar from 2 million to 5 million. However, it must be said that 90% of investors find it difficult to adhere to the first three rules, let alone apply this final trick.
This advanced strategy for the final step @Wan Bing, assumes that you have strictly followed and executed the previous three rules. After all, in the ever-changing crypto world, a solid strategy and strict execution are the cornerstones of success. #BTC# #PI# #ETH#