Beginners are often discouraged by contract terminology; in essence, it is a game of using understanding and discipline to cope with market fluctuations—understanding the underlying logic will lead to more structured profits.

I. Basic Logic: First, understand "Direction and Leverage".

It's like determining the heads or tails of a coin: when it rises, you can profit from going long; when it falls, you can profit from going short.

Leverage is a "magnifying glass": with 10x leverage, a 3.3% increase or decrease becomes a 33% profit or loss (in extreme cases, it may lead to liquidation). Beginners are advised to start with 1-5x leverage.

II. Three Profitable Advanced Strategies (with Practical Scenarios)

• Grid Trading: The "automatic harvester" in a fluctuating market.

Set a price range (for example, BTC 110,000-120,000). Buy automatically when the price drops below the grid line and sell automatically when it breaks above. With 100,000 principal, you can earn 2,000-2,500 per month in a fluctuating market, suitable for beginners without time to monitor the market.

• Funding Fee Arbitrage: "Pick up the price difference" across platforms.

The funding rates for the same cryptocurrency often vary across different platforms. After hedging risks, profit from the rate differences. In extreme market conditions, daily returns can reach 72%, but you need to choose platforms with good liquidity.

• Hedging Strategy: The greater the volatility, the more stable the profit.

Open both long and short positions for the same cryptocurrency simultaneously (with equal positions). Regardless of price movements, as long as there is volatility, profits can be made from the price difference, suitable for uncertain market conditions.

III. Risk Control: Surviving is the key to long-term profits.

• Position Rule: Individual position should not exceed 1% of principal. Use the "1/3 rule" to allocate funds (1/3 for daily operations, 1/3 for reserve, 1/3 for capital protection).

• Stop Loss Principle: Either set a fixed 2% stop loss (cut off at the point) or use a wide stop loss with small positions (to allow for market fluctuations). Absolutely do not hold onto losing positions.

• Emotional Management: If you incur three consecutive losses, stay out of the market for 24 hours. If you achieve a 50% profit, withdraw 20% of your principal to your wallet (realizing profits is the true gain).

Practical Insights: Comparing positive and negative case studies.

• Positive: AI arbitrage accounts earn $12,000 per month, relying on mechanical execution of strategies, along with reserves three times the operational funds (to withstand volatility).

• Reverse: Some people borrow high-interest loans to go all-in, without setting stop losses. A single crash can wipe out six years of salary; a bloody lesson.

Three Major No-Gos for Beginners

❌ Absolutely do not use living expenses or emergency funds to trade contracts.

❌ Do not follow others blindly (you cannot withstand their stop losses).

❌ Do not blindly trust a single indicator (MACD, moving averages should be considered together).

Ultimate Understanding

Contracts are not a gambling table; they are a tool for realizing "understanding + discipline."

It is recommended to practice on a demo account for 3 months and start with 1% position in the real market, paying more attention to on-chain data (capital flow, position changes).

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