After 8 years of trial and error in contracts, I finally realized after three liquidations: the so-called "bad luck" is all due to risk control loopholes.

Combining the volatility data of BTC and ETH in 2025, these practical tips will help you avoid 90% of the pitfalls.

1. Leverage is not the wolf, the position is the bomb.

100x leverage is really not scary. Data from OKX last year showed that 70% of liquidations came from those who went all in. With a $10,000 principal and 100x leverage, if you only invest $100 to enter, the actual risk is no different from a 1x leverage light position; the key is the proportion of the position.

2. Stop-loss is a life-saving symbol, not a shame pole.

According to CoinGecko statistics, 82% of liquidations in Q3 2025 stemmed from holding on after losing 5%. Iron rule: a single loss should never exceed 2% of the principal; for a $10,000 account, the maximum loss per trade is $200. Trigger a cut immediately, don’t wait for a “rebound.”

3. Calculate the safety line before opening a position, memorize the formula.

Maximum opening amount = (Principal × 2%) ÷ (Stop-loss percentage × Leverage). For example, with a $50,000 principal, 10x leverage, and a 5% stop-loss, you can open (50000×0.02) ÷ (0.05×10) = $20,000. Calculate clearly before taking action.

4. Take profits in stages, don’t ride the profit roller coaster.

Reduce 1/3 after earning 20%, reduce another 1/3 after earning 50%, and set a trailing stop for the remaining amount, such as clearing if it falls below the recent support level. A friend of mine used this trick in 2024 to grow $50,000 to $1.2 million.

5. Hedge with options, buy peace of mind for a small cost.

When holding a long position, spend 1% of the principal to buy put options as insurance. In February 2025, when ETH plunged 18%, I used this trick to protect 28% of my principal.

Lastly, I must emphasize: single loss ≤ 2%, annual trades ≤ 20 times, win-loss ratio ≥ 3:1, 70% of the time in cash. Contracts earn disciplined money, not gambling money.

Follow me for practical skills that can be implemented, see you in the Binance chat room.