First of all we need to understand Margin ie using financial leverage in investment, instead of throwing USDT into Future trading, Margin is also a good choice for…burning the account. If you participate in Coin trading on any centralized exchange without knowing about leveraged trading, then you deserve to be an Angel, but every Angel has a broken wing, the downtrend season at the end of 2021 comes. The end of 2022 is a period where no matter if it’s an Angel or a mortal, it’s a loss, regardless of Hold Spot or Future, Margin. So why do I recommend the method of holding Coin Margin? In other words, borrow money from the exchange to average the price during the period when BTC is accumulating to prepare for the uptrend season (when it is impossible to confirm). Can I make your account fire? Please say yes, yes in case you do not comply with the discipline and size of capital and loan. And if you follow the right process and follow the discipline, this method will surely optimize profits for you with little capital (under $20,000) by only buying and holding, not Future to worry about losing. eat and sleep at night. So what is my method? I take an example In the next uptrend season, I determined to bring to the market $ 15,000 and buy and hold any 3 coins, of course buy and hold, because at this stage BTC is running cumulatively, cannot confirmed that BTC will not fall below $ 15,000 again, but in the long term, the fact that BTC drops to the old bottom by the end of 2022 is a good opportunity for us to buy more Coins and hold. The capital is allocated as follows: Hold BNB: 5000 $ Hold OP: 5000 $ Hold ARB: 5000 So $ 15,000 divided by the above 3 coins is enough for us to have a desired profit when the market Uptrend market is back, some people say x5 is enough, but some people say it’s not enough. So you can’t expect x10 instead of raising capital and just needing x5. But it’s so hard to empty your pocket but only $ 15,000, how to raise capital? Take a bank loan? Borrowing from relatives? Borrowing black credit? The answer is borrowed from CZ. But how to borrow to be safe and limit the interest rate to be paid to the floor? The answer is to choose a loan time and choose a reasonable loan amount. The loan amount of about 25% of the capital will ensure the safety of your account. Borrow 25% of $5,000 for each asset class, and so you raise your holdings to $18,750. Of course, the timing of borrowing is very important, only borrow when the Coin you hold drops in price by more than 30% during the period of BTC accumulation, and when you borrow at that price, it will almost never be able to touch the asset liquidation price, unless discharge straight down like…LUNA. The specific implementation is as follows: 1. Select the Isolated Margin pairs you want to buy Hold. Normally, Binance exchange for normal accounts has a maximum of 10 Coin pairs with Isolated Margin 2. Transfer USDT into each Isolated Margin pair you have defined, as above, I take for example three pairs of BNB/USDT; OP/USDT; ARB/USDT, 5000$ each. 3. Calculate the rate and time to buy. For example you intend to buy and hold OP at the prices: 2.1$; 1.5$ and 1$, you need to allocate 5000$ into 3 parts, the first part is 1,600$(take even number) buy at 2.1$; $1,600 buys at $1.50 and $1,600 buys at $1, but on the 3rd purchase you boldly borrow 25% of $5000 to buy, so the 3rd time will have a total purchase amount of: $1,600+1,250$. At this point you notice that the liquidation price will almost always be very far and far away, it is difficult to liquidate your Margin order except in cases like LUNA. But like LUNA, leverage or not leverage also goes underground, so there’s no need to think much. For other Coin pairs, please apply the same ratio as above to calculate. Note that when you have borrowed 25% of capital and bought DCA for the 3rd time, absolutely do not borrow any more, because when you borrow more than 25% of your account, it is no longer safe, so you must absolutely not be greedy. DCA when the price continues to fall, unless that’s what you put into that Isolated Margin pair and didn’t have to borrow it from the exchange. Previously, there was a couple that I borrowed up to 50% of the capital because at that time the market entered the Uptrend time. In addition, if you borrow BUSD instead of USDT, the interest will be even lower, but if you want to borrow BUSD, you must transfer to Isolated Margin BUSD pairs first. Note: The loan amount is calculated by the floor, but when you borrow it, you are DCA when the price drops deeply and waiting for Uptrend, so the real interest of the floor is not worth much if the market grows as expected. This way of Hold Coin Margin I have done and earned a significant profit, for you with large capital may not need to apply, but for those of you with limited capital, it is a way to save money when the account is negative. and no more reserve funds to DCA. (All of the above content is my personal way of doing it, do not encourage you to follow, all for sharing purposes only)
Source: Collector
