As a beginner in the cryptocurrency contract market, remember: contracts are 'leveraged knives' that amplify both profits and losses! These 6 life-saving rules can help you avoid pitfalls and reduce losses by 10%!
1. Lock in 'low leverage'
Leverage means 'spending 1 dollar as if it were 10 dollars', but the higher the leverage, the faster you can get liquidated! Beginners should avoid more than 20x leverage (with a liquidation rate over 90%) and instead choose within 3x (or even no leverage) to practice. Remember: leverage is a magnifier, not a 'get rich tool'.
2. Don't exceed 10% of your capital in position size
Contracts are not a 'gambling game'! The amount invested in a single position should be ≤ 10% of your capital (for example, with 10,000, you should open a position of at most 1,000). Always keep more than 50% of your capital as 'backup' (for averaging down or withstanding volatility). Heavy positions = gambling with your life; don't mimic big players going 'all in'.
3. Always set a stop-loss when opening a position: cut losses at 10% automatically
The most dangerous thing in contracts is 'holding on'! Set a stop-loss immediately when opening a position (cut losses at 10% automatically); don't wait for a 'rebounce'. The market won't 'give face' just because you're losing; if it breaks support, you can get liquidated in minutes.
4. Take profits in batches when gaining 20%-30%
Don't be greedy! Take profits in batches when gaining 20%-30% (for example, sell half first), and hold the rest steadily. The cryptocurrency market is volatile; what rises by 30% today might drop by 50% tomorrow. Taking profits when you can is the 'sure win'.
5. Don't let emotions lead you astray
Don't trade frequently: if you open more than 3 positions in a day, 90% chance of loss;
Don't follow big influencers blindly: 'signal teachers' might not understand themselves, and they just cut retail investors;
Don't go all in to 'recover losses': if you lost, you might want to 'make it back in one go', but you end up losing more.
6. Only choose major exchanges
Small platforms are unsafe (they can run away at any time), and their contract depth is poor (large slippage). Only choose leading platforms like Binance and OKX for safe funds and smooth transactions, so you won't get 'screwed' by the platform.
Lastly, let me say this:
The essence of contracts is 'high-risk gambling'. Without experience and discipline, 90% of beginners will lose. If you really want to play, start with 1,000 to practice (stop if you lose it), learn to 'control risks' before talking about making money!
Remember: staying alive is 100 times more important than making money.
Now the market is active again, and we definitely need new star sectors or cryptocurrencies to ignite a new bull market. Catching one can lead to great profits, and catching several can lead to explosive gains! A single tree cannot make a forest, and a lone sailboat cannot sail far! In the cryptocurrency world, if you don't have a good circle or first-hand information, I suggest you follow me, and I will guide you to profit.
