Cryptocurrency contract trading is a high-risk, high-reward investment method suitable for investors with a certain understanding of the market. Below are the core points and operational guidelines:

1. Basic Concepts of Contract Trading

Essence: Similar to a betting agreement, predicting the price trend of cryptocurrencies, supporting both long and short positions (choose 'Long' for bullish, 'Short' for bearish)

Core Mechanism:

Leverage Ratio: 1 yuan of principal can leverage 10-100 times the funds (mainstream exchanges offer 3-100 times leverage)

Margin: Initial funds must be deposited as collateral (minimum 5 US dollars for USDT-denominated contracts)

24-hour Trading: No market closure time limits

2. Newbie Operation Process

Platform Selection: Preferably Binance, OKX, and other leading exchanges, must complete two-factor authentication (2FA) and risk assessment

Opening Position Steps:

Transfer USDT to the contract account

Select BTC/USDT perpetual contract (best liquidity)

Set the leverage ratio (suggested leverage below 5 for newbies)

Profit and Loss Calculation:

100U principal + 10 times leverage = 1000U operating amount

Asset price fluctuation of 1% = account fluctuation of 10U (return rate of 10%)

3. Key Points of Risk Management

Liquidation Mechanism:

Triggered when the maintenance margin rate falls below 0.5%-1%

Calculation Formula: Liquidation Price = Opening Price × (1 ± Leverage Ratio × Maintenance Margin Rate)

Position Control:

Single transaction not exceeding 5% of total funds

Simultaneous positions not exceeding 3 varieties

High leverage requires low position size (for example, 0.5% position for 100 times leverage)

Take Profit and Stop Loss:

It is recommended to set the stop loss line at 2-3% of the principal

Take profit line at 5-8% of the principal

4. Choice of Contract Types

Coin-Settled Contracts:

Using cryptocurrencies as margin and settlement currency

Suitable for long-term holders to hedge risks

USDT-Settled Contracts:

Settled and priced in stablecoins like USDT

Reduces the impact of cryptocurrency price fluctuations on margin



5. Common Misconceptions Warning

Leverage Trap:

1% fluctuation under 100 times leverage leads to liquidation

Reference Case: LUNA's crash in 2021 caused 100 times leverage players to be wiped out

Overtrading:

10 trades in a single day can lead to monthly fees of 15%-30%

It is recommended to adopt a trend-following strategy#美国加征关税 $BTC