Here are a few points that every novice in the cryptocurrency contract world must know. As long as you successfully achieve the following points, you will definitely earn more than 7,000 to 8,000 a month, even if you don't make a lot of money.
1. Understand the essence and types of contracts: A contract is a type of financial derivative that allows you to buy or sell a certain amount of cryptocurrency at an agreed price in the future. This includes futures contracts, perpetual contracts, options, and other types.
2. Pay attention to risk management: Set reasonable stop-loss and take-profit levels, control your position size, and keep the risk of a single trade within 1%-2% of your total account funds. Use leverage cautiously, and it is recommended to keep the leverage ratio between 2-5 times.
3. Be aware of the special risks of contracts: Basis risk, where the contract price may not synchronize with the spot price; funding rate risk, where the funding rate of perpetual contracts can affect profits; forced liquidation mechanism, where insufficient margin will lead to automatic liquidation.
4. Choose a reliable trading platform: Select exchanges with high trading volume and good reputation, and understand the platform's trading rules, fee structures, and risk management tools.
5. Develop a trading strategy: Beginners can start with trend trading and breakout trading, avoiding overtrading, trading against the trend, or neglecting trading costs.
6. Learn technical analysis: Use technical indicators such as moving averages, Relative Strength Index (RSI), and Bollinger Bands to analyze market trends.
7. Manage your emotions: Stay calm and rational, avoid blind trading due to fear of missing out, panic, or greed, and execute according to your trading plan.
Finally, here’s a saying for everyone: It’s not impressive to make money in this market; everyone has their lucky moments. Money earned through luck often has to be given back with interest. This market is never short of opportunities, so protect your principal well.
Most importantly, do not study alone; finding a reliable teacher is very important, as they can help you achieve stable profits in this market.
