The experiences of predecessors are worth learning from #经验分享

In early 2014, I encountered cryptocurrency, and in 2017 I started trading full-time. In seven years, I have grown from 30,000 USD to over 3 million USD, a 100-fold profit! Recently, some friends asked: What is a contract in the crypto world? Actually, a contract is like 'futures' in crypto, called Future in English, but people in the crypto world insist on calling it a contract—why? Because each trade is like two people signing a 'future price bet'! What does a contract really mean? Simply put, the essence of a contract is that two people have differing opinions on the future price of a cryptocurrency: one thinks it will rise and wants to go long; the other thinks it will fall and wants to go short; so they 'sign a contract' and take a gamble. Whoever is right makes money, and whoever is wrong loses money. **Note**: The unit of a contract is 'lot'; for example, buying 1 lot of a contract does not mean you have bought the actual cryptocurrency, but rather you are participating in this 'price prediction game'. Advantages of contracts: 1⃣ Can amplify profits: Use a small amount of capital to trade large positions, the profits are significant (of course, the risks will also be amplified ⚠). 2⃣ Flexible shorting: There are opportunities to make money in a bear market; you can profit from both rises and falls. 3⃣ No delivery required: You don’t need to actually buy the cryptocurrency, just settle through gains and losses, which is convenient and hassle-free! ⚠ Risks of contracts: 1⃣ Leverage risk: The higher the leverage, the quicker the liquidation; if the price moves slightly, your account could be wiped out… 2⃣ High market volatility: The crypto market is already volatile, and the contract market is even more exciting; you need a strong heart to play. 3⃣ Funding rates: Perpetual contracts may have fees, and over time, the costs can add up. 4⃣ High complexity: For beginners, the various rules and strategies in contracts can be a bit overwhelming. How should beginners play? Don’t be greedy with leverage: Start with small leverage (2-5 times), don’t go all in with 100 times; save your capital to play more times! Control risks: Use stop-loss and take-profit to protect yourself, don’t always think about 'gambling again'. Use 'tuition money' sparingly: Only use spare money to try, and make sure losses won't affect your life. In conclusion: Contract trading is actually a zero-sum game; if you play well, you can earn quickly, but if you’re not careful, liquidation is easy. Beginners should take it slow; if you don’t understand, watch and learn more, and don’t get chopped up in the crypto world as soon as you enter!