I. Basic Mechanisms and Risk Awareness

Understand the Core Characteristics of Perpetual Contracts

Perpetual contracts have no expiration date and support 24/7 trading. They utilize a funding rate mechanism to settle every 4-8 hours to balance long and short positions. Their prices are based on the marked price (spot index price + funding rate adjustment) to avoid misjudgment and liquidation due to extreme market fluctuations.

Risk Warning: High leverage (such as 100x or even 1000x) can amplify both gains and losses, so use with caution.

II. Core Trading Strategies

1. Technical Analysis and Trend Judgment

Short-term Trading: Combine technical indicators (such as candlestick patterns, MACD, RSI) to capture short-term fluctuations, and pay attention to market sentiment and trading volume changes.

Hedging Strategy: If holding spot assets, you can hedge against price declines by opening a short position.

2. Take Profit, Stop Loss, and Position Management

Stop Loss: Limit each loss to 1%-5% of total capital to avoid significant drawdowns from a single erroneous operation.

Take Profit: Dynamically adjust based on market volatility, such as setting a trailing stop loss in a trending market.

Capital Allocation: Avoid putting all funds into one operation, diversify across different cryptocurrencies or time periods to reduce systemic risk.

3. The Art of Using Leverage

Newbies are advised to use low leverage (such as 5-10x); experienced traders can moderately increase it but should adjust according to market volatility. Example: With 100x leverage, a 1% price fluctuation can lead to liquidation, so strict stop losses are necessary. III. Practical Skills and Advanced Strategies

When the funding rate is positive (longs pay shorts), you can short to earn funding income; vice versa. Pay attention to the funding cycle (e.g., Binance adjusts every 4 hours).

Emotional and Psychological Control

Avoid frequent operations to reduce transaction fee losses.

Stay calm in extreme market conditions, and do not blindly chase or sell, especially during the 2025 ETH crash when community trading information may flood in, requiring independent judgment.

IV. Long-term Survival Rules

Continuous Learning: Pay attention to policy changes (such as regulations on perpetual contracts in various countries) and market innovations (such as new derivatives). Review and summarize: Record the logic and results of each trade to optimize strategies.

Risk First: The essence of perpetual contracts is high volatility gambling; be clear about your own risk tolerance and avoid borrowing or misusing living funds.

Summary

The "winning" in perpetual contracts is not to pursue single large profits, but to achieve long-term positive returns through scientific strategies and disciplined operations. It is recommended for beginners to start with low leverage and small positions, gradually accumulating experience before attempting complex strategies. Ultimately, controlling desires and respecting the market are key to avoiding becoming a "gambler."