Many new friends who have just come into contact with cryptocurrency contracts often hear terms like 'liquidation', 'doubling', '10x leverage', 'going long', and 'going short', and feel confused. Today, I will explain in the simplest way how to make money with cryptocurrency contracts.
1. What is contract trading?
Contract trading essentially bets on direction: if you judge that the future coin price will rise, you 'go long'; if you think it will fall, you 'go short'.
Moreover, cryptocurrency contracts usually come with leverage, meaning that if you have 100 USDT, you can operate as if you have 1000 USDT (10x leverage), so a 1% increase means you earn 10%, and conversely, you lose faster.
2. How to make money with cryptocurrency contracts?
Make money from price fluctuations.
Going long: open long at a low price → earn money when it rises.
Going short: open short at a high price → earn money when it falls.
Regardless of bull or bear markets, as long as you judge the direction correctly, there is profit to be made.
Use leverage to amplify profits.
For example:
The current price of BTC is $30,000.
If you go long at $30,000 with 10x leverage, when it rises to $31,000, you earn 33%.
If you started with a principal of 1000 USDT, you would earn 330 USDT.
Short-term quick in and out.
Many people engage in high-frequency contract trading, relying on technical analysis, candlestick patterns, and indicator signals for swing trading or even scalping, and may operate dozens of times a day. As long as the win rate is stable and risks are well controlled, profits can be quite considerable.
3. Why can some people earn a lot while others get liquidated?
The core is three points:
Directional judgment ability: Can you understand trends and plan ahead?
Position control + risk awareness: Don't go all in! Reasonable leverage control leads to survival.
Emotional Management: Don't be greedy, don't be afraid, don't gamble! The easiest target for market harvesting is emotional trading.
Fourth, to summarize in one sentence:
Cryptocurrency contracts are not a shortcut to guaranteed profits, but a double-edged sword.
The core of making money is following the trend + risk control + technology + mindset.
Contracts can allow you to earn what others make in a year in just one day, but they can also wipe you out overnight.
So, if you don't understand, don't rush in. Observe, learn, and practice more, and don't let your principal turn into tuition fees.

I am Xiao O, a professional analyst and educator, a mentor and friend on your investment journey! As an analyst, the most basic thing is to help everyone make money. I will help you solve confusion, resolve positions, and let results speak for themselves. When you lose your way and don't know what to do, follow Xiao O to guide you.

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