To all my friends in the cryptocurrency circle, after years of navigating this space, I have seen too many people celebrating overnight wealth, and even more who experienced the despair of their accounts being wiped out overnight.
Today, I will share the high-value skills and pitfall avoidance guidelines that I have summarized over the years without reservation, helping you navigate the contract market with fewer detours and earn real money!
1. Practical skills: Hands-on teaching of 'guaranteed profit' 1. Position control: Don't let leverage become a 'meat grinder' • Must-read for beginners: Total position should not exceed 5% of the principal! For example, if you have 10,000 USDT, the maximum position you can open is 500 USDT. Experienced traders should not exceed 20% either; don't be blinded by the 'get rich quick myth.'
• Case: Xiao Li directly went all-in on his first trade, resulting in a 10% flash crash in coin price, leading to liquidation. Remember: Position is your lifeline! 2. Stop-loss and take-profit: Protect your principal to 'make a comeback' • Always set a stop-loss when opening a position! For example, if you go long on BTC, set the stop-loss 5% below the support level. It's like wearing a seatbelt while driving; people who aren't used to it always think they won't have an accident, but when an accident happens, it's too late to regret.
• Be 'greedy' with take-profit: If you reach your target profit (like 30%), withdraw; don't wait for a pullback. The market is always full of opportunities, securing profits is the hard truth. 3. Technical analysis: Don't gamble based on feelings • Trend is king: Use moving averages and Bollinger Bands to determine direction. For example, if BTC stands above the 5-day moving average and the Bollinger Bands are opening upwards, it is highly likely to continue rising. • Pattern recognition: Classic patterns like double tops, double bottoms, and flag breakouts can help you predict market trends.
For example, when ETH shows a 'W bottom,' decisively go long. 4. Gradual positioning: Don't go all-in! Like eating hot pot, 'dip in the meat' • When prices fluctuate, build positions in 3-4 batches. For example, open the first position with 10%, add 20% on a pullback, and add more when breaking resistance. This way, costs are lower and risks are smaller.
5. Leverage usage: Proper use can double your investment, improper use can lead to 'zero' • Beginners are advised to use 5-10x leverage, and experts should not exceed 50x! For example, using 10x leverage to go long means that a 10% price increase doubles your investment, but a 5% decrease leads to liquidation. • Difference between perpetual contracts and delivery contracts: Perpetual contracts are suitable for long-term holding, while delivery contracts require attention to expiration time; don't 'lie flat' and get forcibly liquidated. 2. Risk avoidance: Avoid these pitfalls! 1. Excessive leverage: The dream of getting rich turns into a 'nightmare' • With 50x leverage, a 1% price fluctuation leads to liquidation! Remember: The larger the leverage, the exponentially greater the risk. Don't be blinded by 'high returns.' 2. Emotional control: FOMO and panic can ruin a lifetime • Don't chase the price during a surge! For instance, when ETH hits a historical high, opening a long position is likely to get trapped. Wait for a pullback to enter; the win rate is higher. • Don't panic during a crash!
In November 2024, when BTC plummeted, I saw too many people 'liquidate with one click,' and the next day the price went back up. Stay calm and keep a record for review. 3. Platform risk: Don't fall for 'fake platforms' tricks • Choose three major exchanges (Binance, OKX, Huobi) and avoid small platforms. Some platforms may 'spike' (price suddenly drops/rises), leading to liquidation. 4. Liquidity risk: Don't gamble with 'dead coins' • Be cautious with altcoin contracts! For example, some coins with a market cap of less than 100 million dollars may face slippage due to insufficient liquidity, or even become impossible to close. 5. Policy risk: Don't go against the policy • After a certain country issued a cryptocurrency ban in 2024, several exchanges were shut down and user assets were frozen. Stay updated on policy changes and adjust strategies in a timely manner. 3. Mindset management: The biggest 'enemy' in trading is yourself • Review diary: Spend 10 minutes daily recording the trading process, summarizing what went wrong and what went right. Stick with it for 3 months, and your skills will improve 'visibly'.
Reject the 'gambler's mentality': Contracts are not gambling, but a probability game. There is no 'magic trade' with a 100% win rate; only those with strict discipline can survive long-term. Conclusion: In the cryptocurrency contract market, you can only earn if you stay alive. Contract trading is like walking on a tightrope; every step must be taken carefully. Remember: High leverage = high risk ≠ high returns; only those who continuously learn and maintain strict discipline can go further on this 'bloody road' in the cryptocurrency world.
