For Cryptocurrency Beginners, the Primary Principle Is Always 'Survive to Have Opportunities.' The High Volatility of the Crypto Market Contains Both Opportunities and Traps; Establishing a Systematic Understanding and Operational Framework Is the Prerequisite for Risk Avoidance and Profit Accumulation.
1. Basic Cognitive System: Three Knowledge Barriers That Cannot Be Crossed
1. Underlying Logic of Contract Trading
Contract Type Selection: Perpetual Contracts Are the First Choice for Beginners Due to No Expiration Date and Support for Flexible Liquidation; Futures Contracts Require Attention to Expiration Date and Transfer Costs, Recommended to Try After 6 Months.
Leverage Risk Formula: Actual Risk = Leverage Ratio × Price Volatility. For Example, with 5x Leverage, a 10% Price Fluctuation Corresponds to a 50% Profit or Loss of Capital; Beginners Should Control Leverage Below 5x and Use Small Positions to Familiarize Themselves with Volatility Patterns.
Iron Rule for Stop Loss Execution: Single Stop Loss Amount = (Capital × 5%), For Example, 8000 Yuan Capital, Maximum Single Loss 400 Yuan. Stop Loss Is Not Compromise, But a Strategic Retreat to Preserve the Ability to Fight Again.
2. Core Criteria for Platform Selection
Priority of Security: The Proportion of Cold Wallet Assets in Leading Exchanges (Binance, OKX, etc.) and Historical Security Incident Handling Records Are More Important Considerations Than Trading Fees.
Cost Structure Analysis: Spot Trading Compared to 'Maker-Taker' Fee Differences, Focus on the Periodic Changes in Funding Rates in Contract Trading (Negative Funding Rate Arbitrage Opportunities May Occur When Long-Short Imbalance).
Functionality Compatibility: Prioritize Platforms That Offer Simulated Trading and One-Click Stop Loss/Take Profit Settings to Reduce Operational Error Probability.
3. Underlying Logic of Risk Management
The Mathematical Trap of Holding: When Floating Losses are 10%, an 11% Rebound is Needed to Break Even; When Floating Losses are 50%, a 100% Rebound is Required — Holding is Essentially Betting on Low-Probability Events.
Emotional Cycle Management: Record the Emotional State During Each Trade (Greed / Fear / Hesitation); When Emotional Trading Accounts for Over 30%, Trade is Forced to Pause for 24 Hours.
2. Trading Strategy: Probability-Based Certainty Capture
1. Trend Tracking System
Moving Average Bullish/Bearish Determination: In the 4-Hour Chart, 50EMA Crosses Above 100EMA and Both Are Above 200EMA, Forming a Medium-Term Bullish Trend; Conversely, It Is a Bearish Trend. The Closing Prices of the 3 K-Lines Before and After the Crossover Can Filter 60% of False Signals.
Indicator Resonance Conditions: MACD Histogram Breaks Above 0 Axis + RSI Rises from Below 30 to Above 50, Entry Success Rate Increases by 27% Compared to Single Indicator.
Trend Strength Filtering: Trading Volume Must Accompany Price Changes — Volume Must Increase by More Than 1.5 Times During Uptrends and Decrease During Downtrends, Increasing the Probability of Trend Continuation.
2. Swing Trading Discipline
Bottom Confirmation Signal: In a Downtrend, the Following Conditions Must Be Met Before Considering Building a Position: 'Previous Low Not Broken + 3 Consecutive Bullish K-Lines Closing Prices Above Previous Entity by 50% + Increasing Volume.'
Top Avoidance Principle: Price Deviation from 20EMA Exceeds 20%, and 'Volume Stagnation' Occurs (New Price High But No New Volume High), Immediately Stop Pursuing Long Positions, Wait for a Pullback Near 10EMA to Reassess.
3. Capital Management: Practical Case of Splitting 8000 Yuan Capital
1. Dynamic Balance of Leverage and Position
Initial Leverage Setting: 5x Leverage Corresponds to 20% Position (8000 Yuan Capital, Actual Use of 1600 Yuan to Open 8000 Yuan Position), Reserving 80% of Funds to Handle Volatility.
Profit Withdrawal Mechanism: When Single Profit Reaches 20% of Capital (1600 Yuan), Immediately Withdraw 50% (800 Yuan) to Stablecoin Wallet to Avoid Profit Reversal.
Loss Reduction Rule: When Cumulative Losses Reach 10% (800 Yuan), Reduce Position Size by Half to 10% Until There Are 3 Consecutive Profitable Trades to Restore.
2. Step-by-Step Position Building Strategy
Testing Phase: Use 40% of Funds (3200 Yuan) to Establish an Observation Position, Set 5% Dynamic Stop Loss (Automatic Liquidation at 160 Yuan Loss) to Validate Trend Judgments.
Additional Positioning Conditions: Price Breaks Through the High Point of the Testing Phase, and MACD Does Not Show Divergence; Add 30% (2400 Yuan), Total Position Not Exceeding 70%.
Emergency Fund Bottom Line: Always Retain 30% of Funds (2400 Yuan) to Handle Black Swan Events or Additional Positioning Opportunities.
4. Practical Case: Full Process of BTC Long Position Operation
1. Asset Selection Logic
BTC, as the 'Anchor Asset of the Crypto Market,' Has a Volatility Rate (Annualized 68% over the Last 30 Days) Lower Than Altcoins (Average 150%), and Its Liquidity Depth Is Sufficient to Support Small Capital In and Out, Suitable for Beginners to Build Trading Acumen.
2. Entry Signal Combinations
4-Hour Chart: 50EMA Crosses Above 100EMA, the Closing Price of the 2nd K-Line After Forming a Golden Cross Stays Above the Moving Average.
Spot Premium Rate Turns Positive, Indicating Increased Market Buying Power.
Grayscale BTC Trust Holdings Increase for 3 Consecutive Days.
3. Specific Execution Plan
Testing Position: 3200 Yuan Capital × 5x Leverage = 16000 Yuan Position, Set Stop Loss 3% Below Entry Price (Approximately 480 Yuan Loss).
Add Position: Price Breaks Through Previous High of $30,000, Add 2400 Yuan × 5x Leverage = 12,000 Yuan Position, Total Position 28,000 Yuan.
Take Profit: First Target at $32,000 (Profit of Approximately 1866 Yuan), Reduce Position by 50%; Second Target at $34,000, Liquidate Entire Position.
5. Risk Red Lines: A Taboo That Beginners Must Internalize
Stay Away from 'Narrative-Driven' Tokens with Sudden Price Surges: Tokens with Daily Increases Over 30% and No Substantial Good News Are 90% Likely to Be Pumped by Whales; Average Holding Period After Buying Is 45 Days.
Absolute Leverage Limit: 10x Leverage is a Red Line That Beginners Must Not Cross; Data Shows Accounts with Over 10x Leverage Have an Average Lifespan of Only 18 Days.
Cash Reserve Bottom Line: Always Retain Over 30% Cash, As Liquidity Is More Important Than Profit in Extreme Markets.
The Core of Entering the Cryptocurrency World Is Not Learning 'How to Make Money,' But Learning 'How Not to Lose Big Money.' Complete 100 Simulated Trades in 3 Months to Internalize the Above Rules into Muscle Memory, Then Use Small Funds for Real Trading to Progress Steadily in This Market.
Blindly Going Solo Will Never Bring Opportunities; Follow Me for Insights into Tenfold Potential Tokens! Top-Level Resources!
