The Truth of Contracts in the Crypto World: The Underlying Logic Behind 90% of Players Losing Money
Senior Traders Reveal the Survival Rules of Leverage Contracts: High leverage in the crypto world is essentially a short-term gambling game, where a 0.8% market fluctuation can cause a 125x contract player to be liquidated. The exchange's 'spike' operations have caused countless individuals to go to zero in milliseconds.
The Fundamental Difference Between Spot and Contracts
Spot allows for a 50% drop and subsequent cyclical rebounds, while contracts may get kicked out with a 0.5% fluctuation due to the forced liquidation mechanism, even at 3x leverage.
Survival Principles
1. Single loss limit should not exceed 3% of the principal.
2. Only open low leverage of 1-5x to allow for fluctuation space.
3. Establish a complete strategy: entry signal, stop-loss line, and take-profit point are all essential.
The Real Value of Contracts
The correct usage should be to use margin to amplify capital efficiency or hedge against spot risks. If one is obsessed with betting direction on a hundred-fold leverage, it essentially serves as 'fuel' for the exchange.
Self-Assessment Questions
- Do you have a quantifiable trading system?
- Can you mechanically execute stop-loss without hesitation?
- Can you accept your account going to zero in 10 seconds?
If any answer is 'no', please stay away from contracts—being stuck in spot can still leave you lying flat, but liquidation in contracts means immediate exit.
The Harsh Reality: In a zero-sum market, 90% of contract profits come from the liquidation chips of others. Leverage is not a wealth code, but a dangerous tool that requires precise calculations; ordinary people playing high leverage are essentially choosing to be 'fuel for the chives'.
Follow the black cat closely, analyze with precise strategies, and carefully select with huge capital and AI big data to put yourself in an invincible position? The market never misses opportunities; the question is whether you can seize them. By following experienced and the right people, we can earn more!
