5 Essential Tips for Beginners: Prioritize survival, then profits; minimize unnecessary detours in the crypto world.

1. Fundamental Knowledge for Beginners (Avoid Pitfalls)

1. Core Concepts of Contract Trading

Perpetual Contracts (no expiration date) vs. Delivery Contracts (with expiration date), beginners should practice with perpetual contracts first.

Leverage ≠ Doubling: A 5% adverse movement at 10x leverage results in a 50% loss of principal; start with 5x leverage.

Stop Loss is Essential: Set a stop loss of 5%-10% for each trade (e.g., for 8000 yuan principal, single trade stop loss ≤ 800 yuan).

2. Ironclad Rules of Risk Management

No Resistance: If unrealized losses exceed 10%, stop loss unconditionally; keep your principal intact, and don’t worry about missing opportunities.

2. Trading Strategy: Make “Certain” Money

1. Two Rules for Trend Trading

Moving Average Judgment: In the 4-hour chart, if the 50-day line > 100-day line > 200-day line → go long; otherwise, go short.

Indicator Assistance: Enter when MACD is above 0 with a golden cross + RSI > 50 for a higher win rate.

2. Band Trading Mnemonic

Don’t Catch Falling Knives: Wait for three bullish candles to stabilize before buying.

Don’t Chase Highs: If deviating from the moving average by more than 20%, don’t chase; wait for a pullback to the moving average.

3. Capital Management: 8000 Yuan Positioning Method (Practical Version)

1. Leverage Use

Beginners use 5-10x: For 8000 yuan principal, max open a contract worth 80,000 yuan (10x leverage), reducing liquidation risk by 50%.

Handling Floating Profits: After earning 20%, withdraw 20% of the profit (e.g., earn 1600 yuan, withdraw 320 yuan), use the remaining funds for further operations.

2. Gradual Position Building

Initially use 40% (3200 yuan) for testing, stop loss at 5% decline (loss of 160 yuan).

Increase by 30% (2400 yuan) after breaking previous highs, retain 30% (2400 yuan) for potential crashes.

4. Practical Steps (Using BTC as an Example)

1. Selecting Targets: Only trade mainstream BTC/ETH (high liquidity, resistance > 3 times that of altcoins).

2. Trend Judgment: Bullish moving averages + MACD golden cross → go long; bearish arrangement → do not catch falling knives.

3. Position Building: Open at 5x leverage, buy BTC worth 26,000 yuan with 3200 yuan, stop loss at 25,700 yuan (loss of 300 yuan), take profit at 28,000 yuan (profit of 400 yuan).

4. Daily Risk Control: Check positions before market close (not exceeding 10 times the principal), adjust stop loss (protect profits as prices rise).

5. Risk Control: 3 Critical Lines

1. Avoid 3 Types of Landmines

Short-term surging coins (90% are manipulated by market makers), high leverage (liquidation rate over 60% at 10x), full margin betting (retain 30% cash).

The abyss is always there, and I only light one lamp—whether to come ashore with me, the choice is yours.