[99% of people misunderstand the essence of leverage]
Newbies always think "5x leverage is very safe," but they don't know that platform leverage ≠ actual risk!
The truth: The daily volatility of cryptocurrencies exceeds 15%. If you open a position with 20% of your capital and use 10x leverage, it is equivalent to "betting everything on price fluctuations"; a 3% reverse fluctuation means liquidation.
Correct formula: Do not exceed 10% of your capital in a single position, keep total exposure between 1.5-3 times, and lock single trade stop-loss risk at 5%-10% — this is the "risk safety belt" of professional players.
[The essence of contracts: a zero-sum game of harvesting and being harvested]
Do you think you are earning money from the market? Wrong! 90% of contract profits come from the opponent's liquidation.
While retail investors fantasize about "10x leverage for financial freedom," professional players are calculating:
Long-short position imbalance ratio.
Abnormal funding rate.
Liquidation density support zone.
They, like vultures, watch the retail investors' "fatal flaw" — while spot losses can be held for half a year, holding a contract position for 3 hours is a one-way street.
[The Art of Picking Up Money on the Edge of a Cliff]
True contract masters:
✅ 80% of the time, they are in cash, only acting at the "critical point of imbalance between long and short."
✅ Using "stepped stop-loss" instead of fixed points, allowing 1% trial-and-error space.
✅ Bear market strategy: 70% of capital shorting altcoins, 30% BTC long to hedge (e.g., if ETH breaks 1800 in May 2024, must short; if BTC breaks 30,000, go long).
They strictly adhere to the iron rule: When 90% of retail investors chase the price up, they immediately place 100 reverse options, risking 1% of their capital for a 10x payout.
[Why do you get liquidated while they become rich?]
Retail investors die from:
❌ Treating contracts as "gambling on high or low," going all in without stop-loss.
❌ Believing in K-line mysticism, ignoring the essence of capital flow.
❌ Using "spot thinking" to hold positions, not understanding that 20x leverage = 24-hour life-or-death battle.
And professional players understand: Contracts are not investments; they are "the precise surgery of risk pricing." Just like F1 drivers on a cliffside track, it's not about who drives faster, but about who can hit the brakes one second before losing control.
Final advice: If you are still opening positions based on gut feeling, I advise you to quit immediately! The contract market only belongs to ——
✅ Those who can calculate the "liquidation price accurate to two decimal places" are the rational types.
✅ Those who dare to increase their positions against the trend during a crash, while keeping total risk within 15%, are the contrarians.
This is not a gamble; it's a wealth harvesting machine built on mathematics and discipline. Are you ready to pay the "tuition" or come to "class"?
