Many new friends who just started with cryptocurrency contracts often hear terms like 'liquidation', 'doubling', '10x leverage', 'going long and short' and feel confused. Today, I will explain in the simplest way how to make money with cryptocurrency contracts.
1. What is contract trading?
Contract trading is essentially about betting on direction: if you believe the future coin price will rise, you 'go long'; if you believe it will fall, you 'go short'.
Moreover, cryptocurrency contracts usually come with built-in leverage, meaning if you have 100U, you can operate as if you have 1000U (10x leverage), so a 1% increase earns you 10%, but the reverse is also true, and you can lose even faster.
2. How to make money in cryptocurrency contracts?
Making money from price fluctuations
Going long: open a long position at a low price → profit when it rises
Going short: open a short position at a high price → profit when it falls
Regardless of a bull or bear market, as long as your directional judgment is correct, there is profit to be made.Using leverage to amplify profits
For example:
The current price of BTC is $30,000
If you go long at $30,000 with 10x leverage, when it rises to $31,000, you earn 33%
If you started with 1000U, that means you earned 330UShort-term quick in and out
Many people engage in high-frequency contract trading, relying on technical analysis, candlestick patterns, and signal indicators to make swings or even scalp trades, possibly executing dozens of trades a day. As long as the win rate is stable and risks are well-controlled, the profits can be quite considerable.
3. Why can some people make a lot of money while others get liquidated?
The core is three points:
Directional judgment ability: Can you understand trends and position yourself in advance?
Position control + risk awareness: It's not all or nothing! Reasonable leverage control is the key to survival.
Emotional management: Don't be greedy, don't be afraid, don't gamble! The easiest target for the market is emotional trading.
4. To sum up in one sentence:
Cryptocurrency contracts are not a guaranteed shortcut to profit; they are a double-edged sword.
The core of making money is following the trend + risk control + skills + mindset.
Contracts can let you earn what others make in a year in a day, but they can also wipe you out overnight.
So, if you don't understand, don't rush in. Observe, learn, and practice more, don't let your principal become tuition.
The trading team still has positions; they will never let fans blow up their accounts! Get in quickly!
Keep an eye on: SUI PEPE DOGE SOL ETH ENA