A Must-Read for Cryptocurrency Beginners: A Guide to Avoiding Pitfalls in Contract Trading, Understand the Risks Before Entering the Market

Want to try contract trading? Stop right there! This is a highly risky method in the cryptocurrency world, and beginners should not blindly follow the trend. What follows is only a sharing of basic knowledge and practical lessons to help you avoid fatal traps. This is by no means investment advice; you must prepare your knowledge and objectively assess your own risk tolerance before entering the market!💥

1. Basic Understanding First: Grasp the Rules Before Acting

• Differentiate Contract Types: The perpetual contracts that beginners often encounter have no expiration date, and the entry threshold is low, but the risks will persist; delivery contracts have fixed settlement dates, the mechanisms are more complex, and they have a lower tolerance for errors for beginners.

• Remember Leverage Risks: 🚨 Leverage is the core source of risk! It can amplify profits but can also cause losses to grow exponentially. Even small market fluctuations can lead to significant losses. Beginners must start with the lowest leverage, thoroughly understand the risks before considering any adjustments.

• Stop-Loss Must Be Set: A stop-loss is the "lifeline" that protects your principal and can directly lock in the maximum loss of a single trade. Set a reasonable stop-loss ratio based on your risk tolerance, and once triggered, it must be strictly executed without hesitation.

• Choose Platforms Wisely: Prioritize selecting large platforms that have been operating for a long time, have a good reputation, and possess certain regulatory qualifications (if any). Also, compare costs such as transaction fees and funding rates, and resolutely avoid small platforms, as their risk of default is extremely high, and fund safety is not guaranteed.

2. Core Risk Management: Preserve Your Principal to Play in the Long Term

1. Never "Hold the Position": When the market goes against your expectations, you must exit according to your stop-loss. Preserving your principal is always the first principle; do not harbor the illusion that "the market will rebound."

2. Reject High Leverage: High leverage beyond your tolerance is a major cause of account liquidation. Data shows that accounts using high leverage have a much higher probability of liquidation than ordinary accounts; you must restrain your greed.

3. Do Not Go All In: Even if you are extremely optimistic about a certain coin or market trend, you should keep at least 30% of your funds as a risk buffer. Market trends are unpredictable, and having sufficient funds is essential to deal with emergencies. $BTC #美国讨论BTC战略储备 $ETH #美国讨论BTC战略储备 $SOL #现货黄金创历史新高