Say Goodbye to Liquidation Forever, Just Follow These Points!
Playing contracts in the crypto space, liquidation is by no means accidental; it is all due to operational errors! To survive in this brutal market for the long term, be sure to remember the following key points:
1. Low Leverage and Light Positions, Reject Gambling
Newcomers must choose 3 - 5 times leverage, and experienced traders should also avoid easily opening high leverage above 10 times. At the same time, strictly control the position within 20 - 30% of the total capital; only in this way, when facing extreme market fluctuations, will the funds not be instantly wiped out.
2. Set Stop-Loss, Decisively Exit
Before opening a position, determine the stop-loss point, generally set within 3 - 5% of the opening price. Once you judge the direction is wrong, immediately admit defeat and exit. Holding onto losing positions will only continuously enlarge losses until liquidation.
3. Keep an Eye on the Liquidation Price, Rationally Supplement Margin
Closely monitor the liquidation price of the contract; once it approaches this price, the risk is extremely high. If funds are sufficient, you can appropriately supplement the margin, but never blindly increase the position; otherwise, it will only accelerate the liquidation speed.
4. Stay Calm, Follow the Trend
After losing money, focusing solely on recovering losses results in 99% of the time losing even more. Be sure to follow the market trend in your operations; do not go against the trend in volatile and unidirectional markets, as increasing positions against the trend is undoubtedly a path to self-destruction.
5. Use Hedging Wisely to Reduce Risk
If holding BTC long-term, you can appropriately open hedging positions based on market conditions. If holding BTC and bearish in the short term, you can open a short position to hedge and reduce losses.
6. Stay Away from Meme Coins, Use Leverage Cautiously
Small-cap coins have extreme price fluctuations and can easily trigger liquidation, while mainstream coins (BTC, ETH) are relatively more stable. When the market experiences extreme conditions (sharp rises and falls), be sure to avoid high leverage to prevent total loss.
7. Build Positions in Batches, Diversify Risks
Do not invest all at once; instead, choose to build positions in batches and gradually increase your position. This way, even if the market experiences severe fluctuations, there is still room to adjust funds and strategies, avoiding direct liquidation.
Remember, in contract trading, the most taboo actions are heavy positions, holding onto losing trades, and impulsive operations. As long as you strictly control your position, set stop-losses properly, and use leverage reasonably, you can progress steadily in the crypto contract market.
$BTC
