In the cryptocurrency world, many people lose money because they play too 'wildly,' using funds beyond their capacity, which is high leverage.

For example, if you have 1000 yuan, but you insist on using 100 yuan to engage in 100x leveraged trading.

Now, your operating funds suddenly become 10,000 yuan, of which 9,000 yuan is borrowed.

If the market fluctuates slightly, exceeding 10%, your principal of 1,000 yuan will be completely wiped out.

In the cryptocurrency world, a 10% market fluctuation is nothing; it's very common, almost like 'everyday fare.'

Contract trading is actually just a tool.

If you want to short, you have to rely on it; spot trading can only be done honestly by buying.

We often see 10x, 20x, or even 100x leverage, but don’t forget there is also the simplest 1x leverage, which means not borrowing money and using your own funds.

Remember, the tool itself is not the problem; it all depends on how you use it.

Just like a knife, it can be used for self-defense or to harm others, depending on how you wield it.

The market changes every day, and don't let your mindset get too tight. If you always feel one step behind or are disturbed by market noise, feel free to chat.