Among various derivatives, contracts in the cryptocurrency space are arguably the most dangerous. The level of leverage has long exceeded a reasonable and orderly range, and when high leverage meets chaotic volatility, the trading space becomes a complete casino. The casino does not care about education; even if one is a graduate student, a PhD student, or a graduate of a top university, once they are driven by gambling instincts, the 'raincoat' of higher education can be easily pierced. What is even more worrying is that the KOLs in this circle overlap with some idols from the post-85s to the 00s, like Jay Chou and Li Xiaolai. They not only fail to set a good example but also attract a large number of fans into this 'casino.'


For those without a financial background, learning to trade derivatives should be gradual: the first step is to understand trade and market, starting with the Dow Jones index. It is standardized, highly liquid, and has rich commentary, helping you understand non-leveraged trading. The S&P 500, S&P 100, and Russell 1000 are also good choices; the second step is to understand leveraged forward trading, using oil as a suitable observation object. It adds the concept of time pricing compared to the first step, and since 2024, the impact of industry supply and demand on its price has decreased, while financial and macro attributes have increased, making it easier for outsiders to observe and think; the third step is to understand options trading, suggesting looking at options for Tesla, Meta, and Nvidia, rather than the options for indices from the first step. Options in US stocks, commodities, or ETF options can also be considered. Many people misunderstand options; in fact, they are a good risk management tool, but investor education in Chinese is lacking, and even futures are often misunderstood, let alone options.
Here are a few life-saving suggestions for beginners, based on real trading losses:

  1. do not place orders after 9 PM. During the day, the news is chaotic with many false positives and negatives, and the market fluctuates widely, making it easy to be misled; after 9 PM, the news stabilizes, and the K-line becomes clearer with a more defined direction.

  2. Immediately take profits when you make money. Don't always think about doubling, for example, if you make 1000U, it's advisable to withdraw 300U to your bank account immediately and continue to operate with the rest.

  3. Look at indicators, not feelings. Don’t place orders based on feelings; that's just gambling. Install TradingView on your phone and check if MACD has a golden cross or death cross, if RSI is overbought or oversold, and if Bollinger Bands are tightening or breaking out. Only consider entering the market if at least two of the three indicators give consistent signals.

  4. You must exit the market every week. Every Friday, without exception, transfer 30% of your profits to your bank account, and continue to roll over the remaining amount. Over time, your account will grow thicker.

  5. There are tricks to reading K-lines. For short-term trading, look at the 1-hour chart; if the price has two consecutive bullish candles, consider going long; if the market is sideways, switch to the 4-hour chart to find support lines and consider entering near those support levels.

  6. Never fall into these traps! Keep leverage below 10 times, and beginners should control it within 5 times; avoid coins like Dogecoin and Shitcoin as they can easily lead to losses; limit yourself to a maximum of 3 trades a day, as too many can lead to loss of control; absolutely do not borrow money to trade cryptocurrencies!


Once assets exceed 30 million, there is a foolproof but almost guaranteed way to eat up all profits from trading cryptocurrencies, and you can master it with slow learning.

First,

When trading cryptocurrencies, never do these three things:

Firstly, never buy during an uptrend; develop the habit of buying during a downtrend, practicing 'be greedy when others are fearful, and be fearful when others are greedy';

Secondly, never over-leverage;

Thirdly, never go all-in; being all-in is very passive, the market never lacks opportunities, and the opportunity cost of being all-in is too high.

Additionally, there are six maxims for short-term trading:

Firstly, after a high-level consolidation of cryptocurrency prices, there is usually a new high, and after a low-level consolidation, there is usually a new low. Wait for the direction of the change to become clear before operating;

Secondly, do not trade in a sideways market; most people lose money in cryptocurrency trading because they cannot do this;

Thirdly, when selecting K-lines, buy on a bearish close and sell on a bullish close;

If the decline slows down, the rebound will also be slow; if the decline accelerates, then the rebound will occur;

Fifth, build your position using the pyramid buying method, which is an unchanging principle of value investing.

Sixth, after a continuous rise or fall in a cryptocurrency, it will inevitably enter a sideways phase. At this time, there is no need to sell all at high prices or buy all at low prices, as a change will inevitably occur after consolidation. If it changes downward from a high position, one should clear their position in time.

Still the same saying, if you don’t know what to do in a bull market, click on my avatar to follow me for bull market spot planning, contract secrets, and free sharing.