Newbie's Guide to Avoiding Pitfalls in the Crypto World 💰 A Summary of Hard Lessons from Experienced Players
Just entered the crypto world and trading contracts? Don't rush to go all in! Here are 4 life-saving suggestions from seasoned players, remember: staying alive gives you the chance to get rich! 💪
🔥 First Rule of Survival: Learn to Crawl Before You Fly (Basic Pitfall Avoidance)
Choose perpetual contracts: Newbies shouldn't touch futures contracts! Perpetual contracts have no expiration date, making it friendlier for practice.
Leverage ≠ Money Printing Machine ⚠️: With 10x leverage, a 5% reverse fluctuation means losing half of your principal! It's recommended to start with 5x and feel the “waves.”
Set Stop-Loss! Set Stop-Loss! Set Stop-Loss! Every trade must have one! Principal of 8000? Don't exceed a single stop-loss of 800! Floating loss of 10%? Don't hesitate, run! As long as you preserve your principal, you won't fear running out of resources.
📈 Second Rule of Making Money: Only Eat the “Meat on the Fish Body” (Certainty Strategy)
Trend is King:
Look at the 4-hour chart! 50-day moving average > 100-day moving average > 200-day moving average → Go Long ✅; reverse it and go Short ✅.
MACD Golden Cross above the 0-axis + RSI > 50 → Higher Win Rate! 🚀
Don't get carried away in swings:
Don't catch falling knives! Wait for at least 3 bullish candles to stabilize before the previous low.
Don't chase highs in uptrends! If the price is too far from the moving average (>20%)? Wait for it to pull back before getting in!
💰 Third Rule of Money Management: You Can Play with 8000 Yuan (Practical Portfolio Management)
Control Leverage: Newbies can use 5-10x leverage! With 8000 as principal, you can open contracts worth up to 80,000 (10x), significantly reducing risk!
Lock in Floating Profits: If you've made 20% (like 1600), withdraw 320 first (20% profit), and keep playing with the rest, this stabilizes your mindset.
🎯 Four Steps for Practical Combat (Prioritize BTC/ETH):
Choose Coins: Only trade BTC/ETH! They have good liquidity and are much more resilient than altcoins!
Observe Trends: Bullish moving averages + MACD Golden Cross → Go Long; Bearish arrangement? Hold your hands and don’t catch falling knives!
Open Orders: 5x leverage, buy BTC valued at 26000 for 3200, set stop-loss at 25700 (expected loss of 300), target profit at 28000 (expected gain of 400).
Daily Homework: Check positions before market close (don’t exceed 10 times your principal!), adjust stop-loss (protect profits!).
🌟 Core Summary:
Risk First! Stop-loss to protect your principal is the bottom line.
Only engage in Certainty! Don’t guess tops and bottoms.
Manage Your Money Bag Well! Diversify, control leverage, and secure profits.
Focus on the Mainstream! BTC/ETH are the way to go.
During the newbie phase, earning less is winning! Stay alive first, then gradually become stronger! 💪
