Many people say they only use 5x or 10x leverage, thinking it's low.
Actually, this is a big misconception. The leverage ratio shown by the platform is just its safety calculation method and has little relation to your actual risk.
Real leverage should be calculated based on your stop-loss range and the actual capital invested.
In the highly volatile cryptocurrency market, opening positions in batches, investing 10% to 20% of capital each time is reasonable, with a total position limit not exceeding 2 times (short) or 4 times (long) of the capital. The overall risk exposure at the same time should ideally be controlled within 20% of the capital, and the average risk should be around 10%, leaving most of the time with no positions.
Contracts and spot trading are two completely different professional fields.
The essence of contracts is not investment but trading risk. You may not believe in technology, in market makers, or in candlesticks, but one thing must be understood—risk.
What is risk? How to calculate, manage, operate, and withdraw risk?
What you earn is actually the money lost by others when they are liquidated, and the prerequisite for obtaining this money is that you must not be liquidated yourself.
Viewing the market from a risk perspective is completely different from how ordinary people view it from a dream perspective. Those who buy spot can withstand dips and wait for rebounds, but if you stubbornly hold contracts, you won’t survive three episodes. The norm for truly profitable traders is: wait, test, retreat, and wait again, rather than blindly pursuing overnight wealth.
As of now (August 14, 2025), many strategies involve shorting most cryptocurrencies while timing long positions in BTC as a hedge. This simple and effective strategy fails to make money for 80% of people because details and execution are key. Stop-loss plans, holding periods, opening logic—every step must have a strict system.
Trading contracts is like flying—if you can't fly a plane and force it to take off, the result is disaster; if you don't know how to speculate and recklessly enter the market, the outcome is liquidation.
Risk management is your fundamental flying skill; learn it to ensure you live long enough to seize real money-making opportunities when they arise and still have capital to participate.
Daily focus: GTC SKL ELGEN ADA OG
