Here are some basic rules to follow when trading futures in crypto to help reduce risk and improve your chances of success:
1. Understand the Basics First
Learn how crypto futures work: leverage, margin, funding rates, and liquidation.
Know the difference between perpetual contracts and dated futures.
2. Risk Management Is Key
Never risk more than 1–2% of your capital on a single trade.
Use stop-loss orders to cap losses.
Avoid overleveraging — start with low leverage (e.g., 2x–5x).
3. Have a Clear Strategy
Stick to a defined strategy (e.g., trend-following, breakout, scalping).
Avoid emotional or impulsive trades (FOMO, revenge trading).
4. Manage Your Emotions
Be prepared for high volatility.
Stay disciplined — follow your trading plan even after losses or wins.
5. Watch the Market Conditions
Pay attention to overall market trends (bullish, bearish, sideways).
Avoid trading during high-impact news events unless you’re experienced.
6. Keep Learning and Reviewing
Analyze past trades to learn from mistakes and successes.
Stay updated with crypto news, regulations, and exchange policies.
7. Choose a Reliable Exchange
Use well-known platforms with high liquidity and strong security.
Understand the fee structure and how liquidations are handled.
