I see many respondents saying they opened 5x or 10x leverage, claiming it’s already small leverage.
I am really speechless. In fact, I want to tell you, you are all wrong.
Leverage is not calculated this way at all. The leverage ratio calculated by the platform has nothing to do with you; it's roughly the proportion that affects the platform's safety. You should calculate risk based on stop-loss or full principal.
With such high volatility in crypto, it's fine to open positions in stages, around 10% to 20% of your principal each time. The total position limit should be around 2x (short) to 4x (long) of the principal. At the same time, the overall stop-loss risk should be high at 20% of the principal (or within your psychological tolerance, which must be less than 20%). It is recommended to average the risk over time at 10%, which means there are periods when you are flat... Some may ask, then why bother with contracts... Hehe... I might offend the entire crypto community with this statement: do you really want to earn coins or just make money? Is there a more flexible speculative tool than contracts? Is USDT really a useless asset? In the face of a bear market, what is safer, coins or USDT? When you spend money, are you spending coins or USDT?
Dear friends in the crypto circle, doing contracts (pure speculation) is completely different from investing in coins (similar to venture capital); these are two entirely different professions.
The essence of contracts is trading risk. Or rather, using risk management and expectations to make money.
When doing contracts, you must understand this statement clearly.
You can choose not to believe in technology, not to believe in market makers, not to believe in K-line averages, not to believe in BTC, thinking they are all scammers. You can also believe in them; these ideological issues won't stop you from making money.
But there is one thing you must understand, and that is [risk]: what is risk, how to manage risk, how to calculate risk, how to operate risk, how to withdraw risk... how to survive...
------- You cannot make money beyond your cognitive range... Originally, if you invest in a coin and its value doubles, you earn 100%; then doing contracts at 3x means you earn 300% profit. But where does this extra money come from, and who does it belong to? Do you know?
——For contract trading, what you earn is actually the money from risk management, which is the money given to you by others' losses and liquidations. To get this money, first, you cannot blow up your account......
In fact, truly viewing the market from a [risk] perspective is completely different from how ordinary people view it. It's like looking at a mountain from below versus viewing it from the top; they are fundamentally different. For example, those buying coins may hold positions and wait for a rise, enduring losses with patience... But in contracts, if you hold a position and wait, enduring losses, most likely you won't survive the first three episodes.
Thus, operations truly based on [risk] management are completely different from those based on [dreams]. In the trading market, dreaming will cost you money, while those who manage [risk] aim to seize that money.
So, do you want to be a [dreamer] or a [risk manager]? That depends on yourself. However, [dreamers] should not play contracts; doing contracts will shatter the beautiful dreams built over the years in just a few days; waking up that quickly is too much.
Anyone who has made a lot of money during the process will feel that 'that time was almost like picking up money.' It's roughly the same, but—when your opportunity comes, that is to say: when it's your turn to pick up money, you must be alive, and you must have the capital to pick up money.
Yes, making money from contracts is not difficult... After all, there are so many people blowing up and sending money. They are racing on the edge of a cliff; all you need to do is wait at the bottom of the cliff and pick up a few parts to get by.
The difficulty lies in its inherent counterintuitive nature; basically, you have to think in the opposite direction of ordinary people's thoughts like 'getting rich overnight.' Whenever you are eager to increase your position or open a position, you need to think about what it means to 'think against human nature.'
……If buying coins is fishing, then doing contracts is stepping into the boxing ring…… So I say that having a lot of time in a flat position is very normal. Waiting, testing, retreating, trying again, and waiting again…… This is the norm for successful speculators.
In fact, the strategies over a period are almost straightforward, and it can be said that everyone knows about them.
For example, on August 14, 2025, many teams' operating strategies are: shorting most coins while timing to go long on BTC as a hedge.
The reasons are too many to explain. Think of yourself as a big player in the crypto circle and deduce from there. With such an absolutely profitable strategy, 80% of people still can't make money from contracts.
However, such a simple strategy actually contains countless details. For example, the simplest operation principles, why not short based on BTC directly, why shorting is much more conservative than going long, and the holding time is much shorter. When shorting, how should stop-loss be handled? How to short various technical coins... The stop-loss plan for contracts needs to have theory behind it and is worth learning; the value of stop-loss theory is at least worth half of what you invest in contracts. If you can't find it, you need to derive one yourself (that's what I did; I found someone, but they wouldn't teach me, so I derived a set myself). A complete set of theory means a complete set of operations; strict execution will always bring opportunities.
Trading is like this; on the surface, it seems extremely simple with just buying and selling (one minute on stage), but countless people have put in the effort behind the scenes (ten years of preparation offstage)...... Overall, this is a profession. It doesn't mean that novices can't do it, but you must study and train seriously before you can truly step onto the stage.
I often compare flying a plane to speculating. The reason is that these two are quite similar; if you force yourself to fly without knowing how, the result is disaster. If you force yourself to speculate without knowing how, you will inevitably blow up your account.
Risk management and stop-loss management are equivalent to the basic skills of flying a plane; with this, you can at least ensure you won't die.
