1. It is very important to manage the funds in your hands. For example, if you have 100,000 U, divide it into 5-6 parts, and use 20,000 U for each transaction.
2. Use one fund to buy one currency at the current price.
3. If the price of the currency drops by 10%, buy another one.
4. When the price of the currency rises by 10%, sell one share.
5. Repeat the above steps until all funds have been used up or all coins have been sold.
Under this strategy, once you buy, you don’t have to worry even if the price of the currency drops, because we will continue to buy when the price drops.
In fact, if all five funds were used up, the price of the currency would have fallen by at least 50%.
Unless there is a big market waterfall, the price of the currency will not fall so fast. From the perspective of income, each sale can bring a 10% profit.
Taking a total capital of 100,000 as an example, if you use 20,000 each time, you will get a profit of 2,000 yuan each time you sell.
However, this strategy also has certain problems.
A 10% fluctuation is relatively large, which may make it difficult to complete a transaction, thus requiring a longer wait time. This will affect the efficiency of fund use, as funds may be idle for a long time or occupied by individual coins.
However, this problem can be solved by reducing the volatility.
For example, you can choose to buy a currency with high stability, and choose Binance financial products to invest when your funds are idle. This way, you can get extra income while waiting for the currency price to change.