Want to understand contract trading? Calm down first! This is definitely one of the highest-risk plays in the crypto world. Today, we will only discuss basic knowledge and painful lessons to help you recognize the risks, not investment advice. Before entering the market, be sure to do your homework and assess your own risk tolerance! 1. Basic knowledge introduction: Understand the rules before discussing operations.
1. Perpetual vs. Delivery: Newbies often encounter perpetual contracts (which have no expiration date and are relatively simple to operate), but this also means that risks persist. Delivery contracts have fixed settlement dates and are more complex in mechanism.
2. Leverage is a double-edged sword: The core risk point! Leverage can amplify profits, but it will also multiply losses! A small fluctuation can lead to significant losses! Beginners must start with very low leverage and deeply understand its destructive power before considering increasing their positions.
3. Stop-loss is a lifeline: You must set stop-losses! This is the only effective means to control the maximum loss per trade and protect your principal! Set a reasonable stop-loss range based on your situation and strictly adhere to it.
4. Be cautious in selecting platforms: Safety comes first! Always choose large platforms with a long history, good reputation, and relatively sound regulation (if any). Carefully compare costs such as transaction fees and funding rates. Small platforms have a very high risk of exit scams!
2. Risk Management: Surviving is more important than making money!
1. Refuse to 'hold a position': Firmly stop-loss and exit! Protecting your capital is always the top priority; do not fantasize that the market will turn around.
2. Stay away from high leverage temptation: High leverage (far exceeding your tolerance) is a fast track to liquidation! Data shows that accounts using excessively high leverage have a very high liquidation rate! Restrain greed!
3. Never 'all in': No matter how optimistic you are, always retain enough spare funds as a risk buffer (for example, more than 30%). The market is unpredictable, so leave yourself an escape route.
3. Absolute red lines you must not cross!
Stay away from wildly fluctuating 'meme coins': Short-term abnormal surges are often accompanied by huge risks, making you likely to become a 'bag holder.'
Avoid high leverage gambling: This is the fastest way to get liquidated, akin to gambling.
Refuse to trade without stop-loss: This is irresponsible towards your own funds.
Warning: The cryptocurrency market is extremely risky, with volatile price fluctuations that may lead to a total loss of principal or even debt. The content of this article is for educational communication purposes only, sharing common knowledge and risk points in the market. Investing carries risks, and extreme caution is required! Be sure to make independent decisions based on your financial situation, investment experience, and risk tolerance. Do not blindly follow trends! Before participating in any trading, it is strongly recommended to study in-depth and fully understand all related risks. Investing carries risks, and trading requires caution!
I am Xiao O, a professional analyst and teacher, a mentor and friend on your investment journey! As an analyst, the most basic duty is to help everyone make money. I will help you resolve confusion and stuck positions, letting my abilities speak. When you feel lost and don’t know what to do, follow me, and I will guide you.
