Why are most people in the cryptocurrency circle not suited for contracts?

Contracts are a beast for most people and a tool for wealth for a small part of them. If you want to engage in contracts, first understand the following content.

1. Assuming the liquidation probability is 0.1%, after 1000 trades, the total probability of liquidation reaches 63%, and after 2000 trades, the probability of liquidation is 87%. The probability of liquidation is just a theoretical assumption. In actual operations, due to the price trend's probabilities usually being normally distributed, as the leverage increases, the probability of liquidation grows exponentially, which means that the probability of liquidation with 10x leverage is much greater than that with 5x leverage.

2. Assuming a transaction fee of 0.1% each time, with a win rate of 50%, after 1000 trades, your principal will most likely be reduced to zero.

3. Assuming you have 10,000 yuan, if you make a 50% profit the first time and then lose 50% the second time, you will have 7,500 yuan left. If you lose 50% the first time and then make 50% the second time, you will also have 7,500 yuan left. If you lose 90% in a certain trade, you will need to achieve a 900% return to break even.

As for the methods of position allocation and stop-loss lines, there is no essential difference between the two; both reduce risk while also reducing potential returns.

4. In the spot market, 10% of retail investors can profit, while in the contract market, only 3% of retail investors can profit. #BTC再创新高