Want to achieve stable profits in the cryptocurrency market? There is a proven trading method worth understanding. The core idea is not complicated; just follow five systematic steps.

**Basic Framework of the Strategy**

First, divide your principal into five equal parts. For example, if you have 10,000 yuan in starting capital, split it into five parts of 2,000 yuan each. Only use one part for each trade. This approach reduces the risk of each individual operation and leaves ample room for adjustments.

How exactly to operate? Use the first part of funds to buy the selected cryptocurrency at market price. If the price drops by 10%, add another part of funds to increase your position. When the price rebounds by 10%, sell a portion of your holdings to lock in profits. Repeat this cycle—adding to positions and taking profits—until all five parts are used up or your holdings are completely sold out.

**Why this method can reduce risk**

Many people fear a decline in the coin price. But with this logic, a drop becomes an opportunity—each time the price falls by 10%, you can buy more at a lower price, gradually lowering your average cost. From a mathematical perspective, only when the price drops close to 50% will all five parts be exhausted. Unless there is an extreme market crash, it’s unlikely for the price to fall that deep. This is why the strategy has a relatively high fault tolerance.

**Profit calculation logic**

Each sale locks in a 10% profit. For example, with a total capital of 100,000 yuan divided into five parts of 20,000 yuan each, selling one part yields a profit of 2,000 yuan. Although the profit per trade seems small, the cumulative effect can be significant—by sticking to this rhythm, the gains over a year can be quite substantial.

**Practical limitations of the strategy**

Honestly, this method has its limitations. A 10% fluctuation is already quite large, and it may take a long time to trigger a trade condition. This means funds may remain idle for extended periods or be tied up in a single coin, reducing efficiency.

**How to optimize execution**

There are a few ways to improve. First, reduce the fluctuation threshold and choose more stable mainstream coins to increase the frequency of trade triggers. Second, make full use of idle funds by investing in financial products offered by trading platforms during downtime. This way, you can wait for price movements while earning additional income, maximizing the utilization of your capital.

The core advantage of this method lies in its systematic approach and fault tolerance. It doesn’t require precise timing of market turns but instead hedges risk through diversified trading and gradual cost averaging. For beginners wanting to enter trading, this is a relatively friendly entry point.