In the uncertain market of cryptocurrency, even a seemingly small amount of 10U (which is not even enough for a decent hot pot meal) can become a starting point for wealth accumulation. This article will share an investment strategy based on risk management and compound growth to help Newbies find growth opportunities in the crypto space.

Initial Stage: How to Plan 10U Funds and Control Risks

For initial investments, we can set a goal of doubling the 10U capital to 20U, achieving a 100% return growth. However, we must be clear that the encryption currency market is highly volatile, and this process comes with significant risks.

In terms of specific strategies, the trading variety can choose Ethereum (ETH) as the main target, as it has good market liquidity, relatively regular price fluctuations, and a lower likelihood of extreme volatility in extreme market conditions, which helps reduce unexpected risks.

In terms of fund allocation, a strategy of using half for trading and half as a buffer can be employed. Specifically, using 5U for actual trading while keeping another 5U as risk buffer funds to cope with sudden market changes. For example, when the ETH price is 3000U, 5U can open a position of approximately 0.0016ETH.

In terms of risk control, it is recommended to set reasonable take-profit and stop-loss points, such as closing the position to secure profits when reaching a 50% gain (i.e., a profit of 7.5U), or promptly stopping losses when the loss reaches 20% (i.e., reducing to 4U) to avoid greater losses.

It is important to emphasize that investment in the encryption market should be approached rationally. Small amounts of capital should focus more on risk control and long-term accumulation, rather than pursuing short-term windfalls. Investors should adjust their strategies according to their own risk tolerance and continuously learn the market rules.