Want to try contracts? Don’t rush to start! This is recognized as the 'risk ceiling' in the cryptocurrency world. Today, let’s dig into some basic knowledge, recount the painful history of missteps, and help you peel back the layers of risk—first, let me clarify: we are not giving investment advice; you must do your own homework and assess if you can withstand the storm!
1. Understand the basics first, don’t operate with your eyes closed.
1. Perpetual vs. delivery: distinguish clearly before taking action.
Newcomers often encounter perpetual contracts, which have no fixed expiration date and are relatively simple to operate, but also mean risks are 'always online'; delivery contracts have fixed settlement dates and a more complex mechanism. It is recommended that newcomers first practice with perpetual contracts, understand the rules before trying delivery.
2. Leverage: it is a magnifier, but also a 'death knell'.
This is the core of risk! Leverage can double your profits, but it can also make your losses 'snowball'—a small fluctuation can wipe out your capital. Newcomers must start with the lowest leverage (like 1-3 times), truly feel its 'destructive power', and don't get carried away by excitement to increase it, or liquidation can happen in an instant.
3. Stop-loss: it is the bottom line and also a 'life-saving symbol'.
You must set a stop-loss! No exceptions! This is the most reliable way to control single losses and preserve your capital based on your risk tolerance.
(For example, 5%-10% of the capital), once set, strictly enforce it, don’t always fantasize that 'the market will turn around'.
4. Choose a platform: safety is more important than anything.
Prioritize choosing established, well-reputed platforms with relatively standardized regulations (preferably those whose underlying qualifications can be verified), and carefully compare fees and funding rates, which are 'hidden costs'. Avoid small platforms at all costs—scams and latency are common, and the risks are fundamentally unbounded!
2. Risk management: Surviving is the first step to making money.
1. If you need to stop-loss, then run, don't stubbornly hold on.
If the market isn’t right, don’t hold on with the fantasy of 'waiting for a rebound'; preserving your capital is more important than anything else. The market is never short of opportunities; what it lacks are people who can preserve their capital.
2. The temptation of high leverage, don’t reach out.
Using high leverage beyond your capacity (like over 10 times) is a 'highway to liquidation'. The data speaks for itself: 8 or 9 out of 10 accounts that used excessive leverage face liquidation. Control your greed; being steady is better than anything.
3. Don't be 'a one-time wonder', leave yourself an escape route
No matter how optimistic you are about a coin, you must leave enough reserve funds (at least 30% of the capital as a buffer). The market is unpredictable, and price movements depend entirely on sentiment. Leaving a way out will prevent you from being crushed by a single fluctuation.
3. These red lines, don’t touch 'exploding coins,' keep your distance.
Cryptocurrencies that surge in the short term are often traps for 'scalping' by others, especially for newcomers.
You can easily become a scapegoat, don’t be lured by the 'myth of getting rich quickly'.
- High leverage + all-in: don’t even think about it, this is the fastest combination for liquidation, no different from gambling, with a 90% chance of losing; don’t joke with your capital.
- Trading without a stop-loss: purely irresponsible with your money.
Opening a position without a stop-loss is like running naked into the market, how much you lose depends entirely on luck.
This is the dumbest operation.
Note: Investment has risks, and financial management requires caution.
