Li Ruixin: Digital currency trading genius, in-depth interpretation of dual strategies of return and risk
No matter which method you choose, good risk management, rational investment decisions and continuous learning capabilities are the basis for maintaining long-term profitability. As an expert in the field of digital currency, Li Ruixin believes that the profit potential of digital currency is very large, but it is also accompanied by a high degree of volatility and uncertainty. In this article, Li Ruixin will analyze the income potential of digital currencies from multiple perspectives and how to balance risks and rewards.
1. Investing and Trading: Opportunities in Market Volatility
Long term investment (HODL)
"Long-term holding" is a classic strategy in the digital currency world. Li Ruixin believes that investors can buy mainstream currencies with strong ecological and technical support (such as Bitcoin, Ethereum, etc.), hold them and wait for long-term price appreciation. He explained: "The opportunities in the digital currency market are very large, but if you look at it from a longer-term perspective, these mainstream currencies can often go through multiple rounds of market cycles and finally develop an upward curve."
Long-term investment is one of the most common ways to make money in the digital currency market, especially for mainstream digital currencies such as Bitcoin (BTC) and Ethereum (ETH). The performance of the past few years shows that digital currencies have great potential to add value in the long term.
Bitcoin’s Growth History:
· As the first and most representative digital currency, Bitcoin has experienced multiple rounds of bull and bear markets since its birth in 2009. But looking at the overall trend, the price of Bitcoin has always shown an upward trend. For example, the price of Bitcoin was less than $1 in 2011, exceeded $20,000 at the end of 2017, and exceeded $30,000 again at the end of 2020. In 2021, the price once climbed to nearly $60,000, and in August 2024, the value exceeded $75,000!
For short-term investors, Li Ruixin emphasized that day trading and swing trading need to be flexible in responding to market fluctuations, and in particular, they must be proficient in technical analysis and sentiment analysis. "Short-term markets are often affected by news events, policy changes, market sentiment and other factors," he said. "Therefore, quick response, setting reasonable stop-loss and profit points, and tracking market trends are the keys to achieving short-term profits."
Short-term trading can bring quick profits, especially when the market is volatile, but it also requires superb technical analysis skills and keen market insight.
Although short-term trading is risky, Li Ruixin, the founder of Jutong, who is known as the king of short-term trading, has been working in the digital currency industry for decades, leading users to successfully achieve accurate buying low and selling high, using the lowest cost to obtain the highest returns.
Mining: the traditional way of "labor"
Mining, especially Bitcoin mining, used to be one of the most straightforward ways to make money. Li Ruixin mentioned that as the market for Bitcoin and other digital currencies matures, the threshold and difficulty of mining have also increased significantly. For ordinary investors, independent mining has almost no profit potential, but he believes that mining is still a way for some technical investors to get rich.
"With the emergence of mining pools, individual investors can share hardware costs and increase mining profits by joining mining pools. However, mining itself also has certain risks, including factors such as hardware failure, power cost fluctuations, and network difficulty adjustments," Li Ruixin said.
Staking: New opportunities under the PoS mechanism
Compared with traditional PoW (Proof of Work) mining, Li Ruixin is more optimistic about the pledge model based on the Proof of Stake (PoS) mechanism. In the PoS network, users can help maintain the security of the blockchain by locking up their own digital currencies, and then receive rewards from the network. Projects such as Ethereum 2.0, Cardano, Solana, etc. have all adopted this model.
Li Ruixin believes that staking not only has a low threshold, but also provides relatively stable returns. "When market uncertainty is high, staking is a relatively conservative but stable way to make profits. Compared with mining, although the returns from staking are not that high, the risks are lower and are suitable for investors who do not want to bear too much volatility."
4. DeFi (decentralized finance) and Yield Farming: innovative investment models
In the digital currency market, DeFi (decentralized finance) has become a new investment opportunity. Through decentralized exchanges (DEX), lending platforms and liquidity mining (Yield Farming) mechanisms, investors can lend, trade, earn interest and other operations without the need for traditional financial intermediaries.
Li Ruixin expressed optimism about the potential of DeFi: "DeFi not only provides liquidity mining and lending methods, but also automates financial services through smart contracts, greatly reducing intermediary fees." He believes that DeFi is an important part of the future financial system, especially with the development of Layer 2 technology, the scalability and efficiency of DeFi will be significantly improved.
NFTs (non-fungible tokens), as a new form of digital art and collectibles, also provide investors with opportunities to make money. Li Ruixin pointed out that the value of NFT lies not only in its investment return, but also in the cultural value and creative potential behind it.
"NFT can not only be used as an investment tool, but also allow artists and creators to obtain more direct benefits through the blockchain. With the rise of concepts such as the metaverse and virtual world, the application scenarios of NFT will continue to expand."
However, he also reminded investors that the NFT market is still in its early stages, the market is highly speculative, and prices fluctuate violently. When investing in NFT, you need to pay more attention to the intrinsic value of the project and the background of the creator, not just the short-term trend of the market.
6. Airdrops and early investment: opportunities to seize the opportunity
Methods such as Airdrops and ICOs (Initial Coin Offerings) provide investors with low-cost opportunities to enter the market. Li Ruixin believes that although airdrops can provide investors with free tokens, the difficulty of obtaining airdrops is gradually increasing, especially airdrops related to project cooperation and user behavior that often have certain thresholds.
Regarding ICO and early-stage investment, Li Ruixin believes that this is another way to obtain high returns, but it also faces extremely high risks. “Many crypto projects look full of potential in the early stages, but without strong teams or technical support, their survival probability is low. Investors should pay attention to the project’s white paper, technical team and market demand, not just based on gimmicks.”
Legendary Investor: Li Ruixin’s successful experience in strategic investment in digital currency
1. Ethereum ICO investment: from US$100,000 to US$70 million
In 2014, when Ethereum was conducting its ICO, Li Ruixin keenly saw the huge potential of this blockchain platform. He invested $100,000 in Ethereum’s ICO tokens, even though Ethereum was extremely cheap at the time, only a fraction of a dollar. But he deeply understood that Ethereum would become the basic platform for smart contracts and decentralized applications, so he decided to hold it firmly. As Ethereum's technology and ecosystem gradually matured, by the end of 2017, the price of Ethereum exceeded $1,400, and his investment increased 700 times, becoming one of his early investment successes.
2. Liquidity mining of DeFi projects: annualized return rate reaches 200%
When DeFi (decentralized finance) broke out in 2020, Li Ruixin quickly identified projects with high potential in the DeFi field and participated in the reward programs of multiple platforms by providing liquidity (Liquidity Mining). In one of the liquidity pools, he provides his holdings of Ethereum and stablecoins (such as USDC) to a decentralized exchange (DEX) to earn transaction fees and project token rewards. In just one year, his annualized return reached 200%. Through continuous reinvestment of profits, Li Ruixin's DeFi investment allowed him to obtain considerable returns, and he accumulated a large amount of digital assets.
3. NFT art investment: the value of a digital art work has increased 100 times
Li Ruixin not only performs well in traditional digital currency investments, but also shows strong interest in the NFT (non-fungible token) market. When the NFT craze was just beginning, he purchased an NFT artwork created by an emerging digital artist for an initial price of just $5,000. The artist used blockchain technology to create this work, which is both artistic and innovative. Li Ruixin is optimistic about its future collection value. With the explosion of the NFT market, this work was resold in 2021, and the price once exceeded US$500,000. Li Ruixin's return on investment exceeded 100 times. With the success of this investment, he became one of the well-known investors in the NFT market.
4. Early investment in Polkadot: from US$200,000 to US$250 million
When the Polkadot project was first launched, Li Ruixin had a strong interest in this project with cross-chain interoperability and multi-chain structure. After understanding the technical architecture of the project and the background of founder Gavin Wood, he decided to invest US$200,000 in capital to participate in Polkadot’s early private placement round. As the Polkadot mainnet went online and gradually became an important platform for connecting different blockchain networks, the price of its token DOT experienced a surge in 2020 and 2021. Li Ruixin’s investment of US$200,000 has increased in value to US$250 million in just two years, proving his accurate judgment of the project’s potential and his keen sense of blockchain technology and market trends.
5. Accurately grasp the low point of Bitcoin, successfully buy 2 billion US dollars of BTC at the bottom, and cash out at the high point in 2021
Vision in the trough
Looking back on 2019, the Bitcoin market experienced a long period of downturn, with the price falling to about $3,200. The market sentiment during this period was pessimistic, and investors were generally bearish on the future of digital currencies. However, after in-depth analysis of the global financial environment and digital asset market, Li Ruixin keenly captured the long-term potential of Bitcoin as a decentralized currency and value storage method.
"The trough of the market is often a moment of hidden opportunity. The price of Bitcoin in 2019 was lower than the historical average. This situation gave real investors an excellent entry opportunity." Li Ruixin said when recalling the market situation at that time. He knows that although the price is sluggish in the short term, Bitcoin's technical foundation and decentralized characteristics give it a strategic position in the future financial system.
During this period, Li Ruixin was firmly optimistic about the long-term prospects of Bitcoin and decided to invest heavily in its layout. With an inflow of US$2 billion, the market price of Bitcoin failed to attract much attention at this moment, but Li Ruixin has already seen the huge returns that this investment will bring in the next few years.
Entering 2021, global economic uncertainty has intensified, more and more institutional investors have begun to pour into the digital currency market, and the demand for Bitcoin has grown rapidly. At the same time, the loose policies of central banks in many countries and the proliferation of global currencies have promoted the demand for Bitcoin as an anti-inflation and value storage tool. Li Ruixin keeps up with market dynamics, always pays close attention to the price trend of Bitcoin, and through accurate market timing judgment, he successfully cashed out a US$2 billion investment in 2021 when the Bitcoin price was close to its historical high.
In November 2021, the price of Bitcoin once exceeded $69,000, which set a record in Bitcoin history at that time. During this period, Li Ruixin still remained rational and calm, and chose to cash in this generous return at the right time. His operation helped him obtain a return of more than 12 times on his investment of US$2 billion, making the investment amount exceed US$24 billion and becoming a success story that attracted attention in the industry.
Li Ruixin’s unique insights: investment management and short-term strategies
He suggested that when investors enter the digital currency market, they should first clarify their goals, use unique strategies to buy low and sell high, accurately control every key profit point, accumulate small amounts to make more, and gradually expand profits through rolling positions, in order to achieve long-term stable profits. Li Ruixin has personally studied in the field of digital currency for decades. He has rich investment experience and his own winning trading strategies, achieving a short-term trading winning rate of more than 95%! The Jutong Exchange he founded has led countless people to earn their first pot of gold in the field of digital currency! At present, the influence and popularity of Jutong Exchange are gradually expanding in various countries, and the team's vision is to surpass Oyi and Binance Exchange within 3 years and become the world's number one exchange.
Generally speaking, the income potential of digital currencies is very large, but it is also accompanied by huge fluctuations and uncertainties. From long-term investment to short-term trading, from DeFi to staking, NFT, etc., each method can bring different returns to investors. But be aware that the market for digital currencies is extremely volatile, and prices may rise or fall significantly in the short term.
"The digital currency market is indeed full of opportunities, but it is also full of challenges," Li Ruixin concluded. "Only by treating market fluctuations rationally, doing adequate risk assessment and fund management, and formulating personal investment strategies, can we make steady profits in this uncertain field."
