The Bitter Lessons of the Crypto World: I once stumbled badly in the market due to my lack of understanding of contract leverage rules. Now I share my experience with you to help you avoid detours.

In crypto contract trading, there is a fundamental knowledge that must be remembered—do not open a full position; using a margin position is the wise choice!

The advantages of the margin position model are obvious; it allows you to flexibly adjust your margin and liquidation price, better controlling risks.

Taking 10x leverage as an example, the liquidation price in the margin position model is clearly discernible, and you can also adjust positions in batches to avoid losing everything due to a single mistake.

For instance, suppose a certain coin is currently priced at 100 USDT. If you open a 10x leverage position, the liquidation price will fluctuate within a range of 10 USDT above and below 100 USDT, which could trigger liquidation;

If you open 20x leverage, the liquidation price range shrinks to 5 USDT above and below; whereas with 2x leverage, the liquidation price is 50 USDT above and below, which allows for greater operational space and a lower probability of liquidation.

It’s important to know that spot trading is essentially 1x leverage; a drop to zero results in a loss of 100 USDT, which is no different from a contract liquidation at 1x.

There is no fixed standard for leverage; the key is to adjust flexibly and respond to market conditions.

For intraday trading, the leverage can be relatively higher, calculated based on the highest and lowest price differences over the past few days. When the market is volatile, setting reasonable leverage will keep the liquidation price far from you.

For medium to long-term trading, with a longer time span and higher uncertainty in market fluctuations, leverage should be reduced to allow for sufficient buffer space.

Different coins have varying situations, and leverage settings should also differ. If a popular coin fluctuates 30% within 24 hours, clinging to 20x leverage will inevitably lead to liquidation sooner or later.

Many newcomers do not understand this detail and blindly pursue high multipliers, resulting in devastating losses.

So, do not just focus on indicators; the market changes moment to moment. Leverage should flexibly change with market conditions and time cycles; understanding how to calculate liquidation prices and adjust positions is crucial.

If you also want to master the flexible use of contract leverage and find an opening strategy suitable for your trading cycle, do not hesitate—hurry and follow me @加密大师兄888

There are many lost souls on the crypto road; I only ferry those destined to cross.