In the cryptocurrency world for many years, I have summarized a few tips to prevent being harvested in contract trading, and I believe they can help you who are currently trading contracts!
1. Understand the essence of risk
The volatility of contracts in the cryptocurrency world is beyond imagination; in extreme market conditions, the principal may instantly go to zero. Before investing, be sure to clarify your own risk tolerance and never use funds that you cannot afford to lose.
2. Avoid blind entry
Contract trading is not a gamble! Be sure to master core knowledge such as candlestick analysis, leverage principles, and position management, and refuse to follow the trend of buying high and selling low.
3. Use leverage cautiously
High leverage is a "double-edged sword"; beginners are advised to start with low leverage of 1-5 times, and cautiously adjust upwards once experience is mature, to avoid an imbalance between returns and risks.
4. Strictly adhere to stop-loss limits
Set stop-loss levels in advance and implement them strictly; do not hold onto positions due to a gambler's mentality. Stop-loss is a life-saving symbol, more important than predicting market trends.
5. Allocate funds scientifically
Avoid "all in" on a single contract or cryptocurrency; diversify holdings to reduce risk. Also, reduce frequent trading to avoid transaction fees eroding profits.
6. Maintain rational decision-making
Extreme price fluctuations can easily trigger emotional loss of control; whether it is the ecstasy of floating profits or the anxiety of being deeply stuck, both can lead to decision-making errors. Stay calm during trading and use strategy instead of impulse.
7. Build a solid safety line
Stay away from unregulated platforms, "expert" trading traps, and Ponzi schemes. Choose compliant exchanges, securely store private keys, and guard against asset theft.
8. Define your investment role
Contract trading is a high-risk game; do not view it as a wealth code. It is recommended to focus on stable investments, with contracts only as an auxiliary strategy, controlling the proportion of funds.
Remember: In the contract market, surviving is more important than making quick money. Rational restraint is essential for long-term stability.
$BTC
