Common methods to make money in the cryptocurrency market through contracts and military rules for newcomers in the cryptocurrency market:
1. Trend following: Follow the major market trend, confirm the trend through technical analysis, enter when breaking key levels, set stop-loss to prevent false breakouts, and do not trade against the trend.
2. Counter-trend pullback trading: Capture price pullback opportunities within the trend, use tools to determine pullback levels, and strictly set stop-loss to prevent trend misjudgment.
3. Hedge spot risk: Open short positions to hedge against downside risk while holding spot, match position size with contract value, and calculate funding rates.
4. Cross-period arbitrage: Profit from price differences between contracts of the same cryptocurrency with different maturities, buy near month and sell far month, paying attention to delivery and funding rates.
5. Cross-market arbitrage: Buy low and sell high when there are price differences of the same cryptocurrency across different exchanges, considering withdrawal speed and transaction fees.
6. High-frequency trading: Capture small price differences relying on algorithms, requiring automated programs and high-precision data, suitable for professional teams.
7. Grid trading: Place orders in batches to buy low and sell high within a set range, choose high-volatility cryptocurrencies, and avoid one-sided market breakouts.
8. Event-driven strategy: Anticipate the impact of major events, ambush before news announcements, and be wary of the “buy on the rumor, sell on the news” reversal.
9. Martingale strategy: Double the position size when losing, requires unlimited capital, extremely risky for liquidation, use with caution.
10. Stop-loss and take-profit strategy: Set fixed profit and loss points based on support/resistance or percentages, do not frequently adjust stop-loss levels.
11. Gradual position building & pyramid position increasing: Gradually increase positions to reduce costs after confirming the trend, control overall leverage ratio.
12. Volatility trading: Profit when market volatility increases, combine indicators to open positions at high panic levels, and avoid excessive trading during low volatility.
Reminder 1: Focus on studying a single cryptocurrency, such as Bitcoin (BTC), Ethereum (ETH), A, Sol, Trump. Make money with this one currency before moving on to others. Most people in the cryptocurrency market are looking at other mountains while missing out on their own, losing the watermelon while picking up the sesame seed, resulting in losses across multiple cryptocurrencies.
Risk warning: High leverage magnifies losses; newcomers should keep leverage below 5x; be cautious of black swan events leading to liquidation; manage mindset, refuse FOMO, and avoid frequent trading.
Summary: The key to contract profitability is "following the trend + risk management". Choose 2-3 strategies for in-depth research, and validate through simulation before real trading.