Here are some important (and somewhat surprising) facts about crypto futures trading that beginners may not know, but are crucial to understand before diving deeper:
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1. ⚠️ The Majority of Futures Traders Lose Money
According to data from many exchanges, more than 70% of futures traders experience losses, primarily due to over-leverage and lack of risk management. Futures are high risk — they are not a shortcut to getting rich.
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2. 💥 Liquidation Can Happen in Seconds
In futures, if the price moves against your position and hits the liquidation price, your capital can be wiped out 100% automatically. Even small movements can destroy your account if using high leverage (e.g., 50x, 100x).
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3. 🔁 Perpetual Futures Have No Expiry Date
Unlike traditional futures, perpetual contracts (most common in crypto) do not have an expiry date, but there is a funding rate that can slowly make positions lose money if held too long.
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4. 🧠 Emotions Are the Biggest Enemy
Futures trading raises adrenaline levels. Many traders seek revenge (revenge trade) when they incur losses, which only exacerbates their losses. Psychology and discipline are more important than entry signals.
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5. 💸 High Leverage Is Not Always Beneficial
High leverage can be tempting, but it can backfire. For example, with 10x leverage, even a 10% price movement can completely wipe out your account.
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6. 🧊 The Market Can “Stop Hunt” Retail Positions
Do prices often seem to “deliberately” hit your SL (stop loss)? This is because many whales and market makers exploit public order book data to “stop hunt” retail positions.
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7. 🕵️ Exchanges Can Manipulate Prices During Low Volume
At certain times (e.g., midnight or weekends), volume drops drastically. This creates an opportunity for certain exchanges or whales to shake prices and cause mass liquidations.
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