At the beginning of 2022, the account balance was 5000 USDT. On December 27, 2024, the account balance was 700,000 USDT, with a return rate exceeding one hundred times.
I don't know why others play, I only know that in today's society, the fastest devalued thing is education, just as you can see, I am a person who cannot be more ordinary. However, it is very difficult for me to buy a car or a house in my city on any platform. The upward channel for our generation has been completely blocked, and there are indeed not many opportunities for those born in the 90s. You can only learn new things and find opportunities to turn things around. Web3, artificial intelligence, and cryptocurrency may be the most hopeful and best odds opportunities for ordinary people. Originally, I didn't care much, 1000U, 2000U, with a little effort, that's just the money for going to KTV twice. But I work hard to learn and seize opportunities; maybe that's a whole new world. I thank my insights. If you're interested, you can check out my other articles, including how to trade, how to make contracts, and how I accumulated my money; everything is detailed. If you want to trade, it's best to ask me first to avoid taking detours. Today, I'll just share my insights on contracts. I won't post my screenshots here; they're easily censored. If you really want to see them, you can ask me separately.
I wrote this reflection in hopes of helping friends who have just come into contact with cryptocurrency contracts. I also hope to help you take fewer detours, and most importantly, to avoid liquidation.
To be honest, making money in the crypto space is easier than in the A-share market. The A-share market has been around 3000 points for the past decade, and ordinary people can only go long. Moreover, information is symmetric; institutions have a lot of insider information and capital advantages. As for major shareholders, they can easily arbitrage between the primary and secondary markets. In the crypto space, at least all information is public, and you can find all the information related to a coin.
You can analyze market sentiment based on these data. Additionally, the crypto space is different from stocks, as you need to understand the operations of many listed companies and their industry development cycles. In the crypto space, when doing contracts, you only need to respect the trend; if you're not holding spot long-term, you don't need to consider the fundamentals of the coin.
To do well in contract investment, there are a few basic concepts you need to know.
1. What is the essence of contracts?
The biggest difference between contracts and spot trading is leverage. For example, on January 3, 2024, breaking news that the Bitcoin ETF would not be approved caused BTC to drop instantly by 10%, and many altcoins dropped by 20%. If you bought Bitcoin with 10X leverage at that time, you would be liquidated. Later, BTC rose to 45,000 on January 8, which would have nothing to do with you at that point. If you held spot, it’s obvious that your losses on that day would be much less than your A-shares. So with contracts, you earn money from short-term volatility. If you hold contracts for the long term, you may have to pay a very high funding rate. The fundamental reason you participate in contracts is that you want to trade short-term and run away after making a big profit.
2. Basic concepts you need to understand before trading contracts.
Isolated margin, cross margin, funding rate, long-short ratio, leverage position limits, what multiple leverage to use for trading, contract open interest, and how to calculate fees, etc. If you don't understand these, you can look them up on Baidu; the content is quite basic, so I won't elaborate here.
3. Returning to my own trading system.
I mainly do intraday trends, primarily focusing on 15-minute charts for trend investments. This is something that those used to T0 trading in stocks usually do; it's not too difficult. Find a suitable leverage for this trend and engage in high-frequency trading with high win rates multiple times. Over time, the power of compound interest will come. Sometimes I might make several hundred trades in a day. So, it’s essential to find a trading platform that offers rebates; you can use my referral code, and the rebate ratio is quite high. I remember in December, during a wave of ORDI and SOL, my account grew from 400,000 to over 700,000. ORDI had significant volatility, earning me a solid 7,000, with the total number of trades reaching several hundred a day, and the highest daily profit being $18,000. My approach is to use 'small positions, large number of trades, and choose those with high trading volume and bullish market sentiment.' After all, if the volatility is low, and each trade's profit is not enough, it leads to excessive trading, which incurs too many fees. Then, on the night of January 3rd, a wave of significant volatility hit when the news about Bitcoin spot ETF not being approved came out, causing all altcoins to drop 20%. I suffered my first daily loss of over 10,000, nearly -$12,000. At that time, I also summarized the problems I faced: I did not strictly set my stop loss. In the following days, I had my first single trade profit exceed 10,000 (Ethereum), and later I also seized the second wave of Pepe’s surge.
4. Always set a stop loss immediately after placing a contract order.
Coins can spike up or down due to one or two pieces of news, and there are too many cases of both long and short liquidations. Moreover, trading is 24/7; you might get liquidated while you sleep, so you must have the habit of setting stop losses. Additionally, I usually do trend trading. If a trend trade goes wrong, never hold your position, because once sentiment consensus is established, there are many cases where prices rise or fall by 100%. No matter how much money you have, you can't hold out. Don't believe me? Just look at TRB in December, which rose from 120 to over 700 in ten trading days without any pullbacks. If you shorted, even with 0.5x leverage, you would have been liquidated long ago. So don't wait until one day you are liquidated to realize the importance of stop losses.
5. Never gamble
Never hold any hopes of luck, because you are trading contracts. Even if you are right nine out of ten times, as long as you are wrong once and stubbornly hold your position, you will also face a 100% liquidation. Being liquidated has a huge impact on your confidence and mentality. So I suggest that if you incur a loss of 30% or more on a contract, you should close your position and take a break to reflect on whether you made a mistake. A 20% fluctuation within two days in the crypto space is quite normal; you will encounter it every day. Therefore, if you want to defeat the market in the long term, you must avoid these factors that may lead to your failure.
6. If you just entered the crypto space and your total assets exceed 20% in digital currency, please immediately withdraw this ratio to below 10%. Otherwise, this volatility will keep you awake and affect your operations.
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