Essential knowledge for entering the crypto world
Decide whether to touch contracts after reading
For beginners who want to play with contracts: this is the most honest confession, decide whether to touch it after reading!
Hello, I am an old player in the crypto circle.
This article is not to teach you how to make money, but to tell you how cruel the path of contracts can be.
If you clicked in with the mindset of 'getting rich quick', I suggest you slide away now, because there are no shortcuts here, only lessons of blood and tears.
A contract is not an investment, it's more like a zero-sum game.
What is a contract?
In simple terms, it's about betting small amounts on the rise and fall of currency prices.
You might only need 100 dollars to operate a position of 10,000 dollars.
When you make the right call, the profits will be magnified; but when you make the wrong call, the losses will also be magnified, until your principal goes to zero.
This feeling is like dancing on the edge of a cliff, where every step could lead to disaster.
The 3 most common mistakes beginners make:
Heavy leverage and ignoring risks: Beginners love to gamble with the highest leverage and maximum capital.
When you win, you think you're a genius; when you lose, you fall into despair.
But true contract experts never put all their chips in the same basket.
Frequent trading, chasing highs and cutting losses: The fun and pain of contract trading lie in being 'fast.'
When you see the price of the coin fluctuate, you can't help but want to enter the market, and as a result, you end up going long one moment and short the next, and the fees will drain you dry.
Not setting a stop-loss and being complacent: This is the deadliest.
When your position starts to lose money, you will think: "Just wait a little longer, it will come back up."
The result is that when you reach liquidation, you lose everything. A stop-loss is not admitting defeat but protecting your capital, giving you a chance for the next battle.
Words of wisdom for beginners:
First learn to protect your principal, then talk about profits.
Treat contracts as your 'high-level side quest' in your investment career, rather than your only game.
Start with a small amount of capital, or even practice on a simulated account to feel the market's fluctuations and pressures.
Do not believe any promises of 'signal trading' or 'guaranteed profits.'
Scams in the crypto world are rampant, and those so-called 'teachers' usually just want to earn your fees or capital.
Your money is something only you can be responsible for.
Always maintain a learning mindset.
Understand the coins you are trading, understand technical analysis, and understand market sentiment.
The path of contracts has no end, only traders who continuously evolve.
In the end, what I want to say is, contracts are not the devil, but they will amplify your human weaknesses.
If you don't have enough discipline, a strong mindset, and learning ability, please stay away from it.
If you are ready, then start by protecting your principal and embark on this challenging path.
I am @加密老七 Follow me and I wish you could become a rational navigator in this vast ocean, rather than a piece of driftwood swallowed by the waves.
Good luck to you! #BNB挑战1000大关 #美联储重启降息步伐 $BTC