If you follow these 6 tips for trading cryptocurrencies well, a yearly profit of 1 million is not a dream. I used this method to grow from 40,000 to 20 million.

1. Short-term trading

This is the most common way of trading in contracts and is usually the first approach for newcomers to the cryptocurrency world. This method carries a high risk, often relying on luck to make profits, and the earnings are often not enough to cover a single loss.

2. Learn to take profits and cut losses

Taking profits and cutting losses are very important in contracts, as the market is highly volatile, and prices can change rapidly. Setting stop-loss orders can help you close positions in unfavorable market conditions to prevent significant losses. A good profit-taking strategy can maximize gains and prevent losing profits due to market reversals, allowing you to manage your profit points effectively.

3. Disciplined trading

In contract trading, one often struggles with greed, fear, and emotional influences, which are major factors leading to losses. Before entering a trade, set your profit-taking and stop-loss levels clearly, maintain your trading rhythm, and minimize emotional interference with your decisions. Establish a trading plan, including the number of trades per day, and avoid thinking about making back losses by entering another trade, as this often leads to even greater losses in the recovery process.

4. Analyze the market trends

The cryptocurrency market has both unidirectional and volatile trends. Weekends typically see the most volatility, making long-term trading unsuitable; it's better to take profits quickly and secure gains. Unidirectional trends occur over a period and are the easiest to trade. Buy on dips and sell on highs for higher profits.

5. Analyze trends

Correctly identifying trends means you've already won half the battle. Analyze the daily and weekly candlesticks to determine whether the market is rising or falling over time. Chasing trends can lead to losses and a disastrous exit from the market.

6. Position management and leverage techniques

Position management is crucial in contracts. For example, if your account balance is 1,000, maintaining a margin rate of 5%-10% is ideal, which translates to 50-100. This way, you won't easily face liquidation. The leverage should be determined based on market conditions, with quick entries and exits. Using high leverage can yield quick returns and maximize capital efficiency. A profit-taking rate of 20%-50% is optimal, as market conditions change rapidly. Learn to control your greed and know when to stop, as greedy traders often face poor outcomes.