Today, let's break down the secrets of cryptocurrency contracts, especially from retail investors to seasoned traders.
If you are new to contracts and don't know how to make money from the market, today I'll teach you three tricks to help you avoid liquidation and losing everything, and truly make money from the market.
1. The First Coin: The Underlying Logic of Directional Betting
What is the essence of contracts? It is actually like flipping a coin.
You either bet on the coin landing heads up (going long) or tails up (going short).
If you go long and the coin price rises, you profit.
If you go short and the coin price falls, you also profit.
Leverage makes this game even more exciting: 10x leverage is like turning the coin into a dice; if you guess right, the reward is 10 times, but if you guess wrong, the loss is also magnified by 10 times.
2. The Second Coin: Advanced Strategies of Combining Tactics
Contract trading is not just about simply guessing up or down; you can also avoid risks and create more profit opportunities through strategy combinations.
Grid trading: Automatically buy low and sell high in a volatile market, which is like setting up an automatic ATM, suitable for steadily earning small amounts of money.
Funding fee arbitrage: This is a zero-risk way of making money, using the difference in funding rates between contracts and spot to earn the funding fee.
Hedging strategy: Open both long and short positions simultaneously to maintain profits in a volatile market, making money regardless of price movements.
3. The Third Coin: The Lifeline of Risk Control
The greatest risk in contracts is the violent blow brought by leverage; if you're not careful, you may face liquidation.
Controlling position size and setting stop-loss is crucial.
Position management: Always remember not to open a position exceeding 1% of your capital; stay calm.
Stop-loss discipline: Set your stop-loss when opening a position; do not let losses expand infinitely, and avoid larger losses due to emotional trading.
Emotional management: After consecutive stop-losses, do not rush to open positions; calm down and formulate your next strategy.
Do not use living expenses to trade cryptocurrencies: Keep 12 months of living expenses aside, and do not let trading affect your life.
Do not blindly trust technical indicators: Indicators like KDJ, MACD, etc., should be used in conjunction with market sentiment for judgments.
Contracts are essentially about making money through knowledge and discipline; every bit of profit you earn reflects your understanding of the market.
If you don't understand these principles yet, practice with a demo account, starting with a 1% position, focusing on survival before seeking profit.
Contracts are not a gambling table; they are a game played with strategy and discipline.
