How much leverage in the cryptocurrency market won't lead to liquidation depends on the following conditions:
1. Your risk preference
2. The type of contract currency opened
3. The size of contract funds
4. Are you doing simple interest or compound interest?
5. Assess the size of the market.
Say goodbye to liquidation! 3 hard-core risk control rules to teach you how to navigate cryptocurrency trading!
The cryptocurrency market fluctuates like a roller coaster, with 20% ups and downs in 10 minutes being quite common——
Have you experienced:
Floating profit of a million but turned into a loss due to greed?
Failed to catch the bottom and was instead liquidated by 'needle-style liquidation'?
Emotionally charged, frequent operations, and transaction fees eat away at most of the profits?
Today, let’s not talk about myths of getting rich quickly, but rather the survival rules! Whether you are a contract player or a spot holder, this all-weather risk control combat guide teaches you how to tame market fluctuations with systematic rules, and say goodbye to 'earning by luck, losing by strength'!
A 'life-saving rule' that even beginners can grasp: Fixed proportion take profit and stop loss
"Why did I make 50%, but still ended up losing money?"
The answer is simple: No take profit or stop-loss set!
Core operation:
Take profit point: When profit reaches the preset ratio (e.g., 20%), immediately sell 50% of the position, and use a trailing stop to protect the remaining position.
. Stop loss point: When the loss reaches a proportion of the capital (e.g., 10%), exit unconditionally!
Case:
You invest 1000 USDT to buy Bitcoin, setting:
·Take profit: When the price rises by 10% (to 1100 USDT), sell 500 USDT to lock in profits; ·Stop loss: When the price drops by 8% (to 920 USDT), directly liquidate to prevent deep losses.
Advantages:
Avoid 'greed giving back' and 'stubbornly holding until liquidation';
Use rules to combat human nature, especially suitable for contract traders!
2. The 'hidden rules' of liquidation that exchanges won't tell you.
Why, even though my margin is sufficient, am I still forcibly liquidated?
Because you haven't understood the exchange's risk level calculation + rules!
Liquidation formula:Risk level = Margin / Total equity. When the risk level ≥ exchange warning line (usually 90%), not replenishing the margin will lead to forced liquidation!
(Case based on certain exchange rules)
Total account capital: 10,000 USDT
Opening margin: 8000 USDT
Maintain margin rate: 10% → Maintenance margin = 8000 x 10% = 800 USDT
When the market fluctuates against you, and account equity ≤ 800 USDT, forced liquidation will be triggered directly!
Survival guide:
1. Always calculate the 'maximum acceptable drop' when opening a position
2. Contract leverage should not exceed 5 times to avoid 'needle-style liquidation'
3. Enable the exchange's "Automatic Margin Addition +" feature,
3. The 'psychological weapon' of top traders: How to quit emotional addiction
"Always wanting to go all in when it rises, and wanting to cut losses when it falls" -- this is human nature, but it is not discipline!
3-step psychological conditioning method:
1. Write a trading plan:
Before opening a position each time, write down the take profit and stop-loss points in black and white, screenshot it and set it as your phone wallpaper!
2. Set physical isolation:
After triggering a stop loss, immediately close the trading software and enforce a '24-hour cooling-off' period.
3. Weekly review of the 'emotional ledger'
Record your psychological state during each impulsive operation (e.g., FOMO, panic), and train for rational decision-making over the long term.
Mindset mantra:
"Rules are your armor, discipline is your weapon"
In the cryptocurrency market, surviving longer is more important than making money quickly!
Take immediate action:
Check the current position, and replenish the take profit and stop-loss orders;
Calculate account risk level, stay away from the forced liquidation red line;
Add this article to your favorites, review it before each trade!
Turning 5,000 into 1 million in cryptocurrency? Let me share something practical!
A method I have personally tested: In 25 years, I made 860,000 USDT from 5,000 in nearly three months, only doing contracts! I have never been liquidated in recent years!
The core message is: Use contract trading to amplify profits!
But don’t rush in; first, turn this 3,000 into 400 USDT (approximately 400 dollars)
Let's take two steps:
First step: Small capital snowballing (300 USDT to 1100 USDT)
Take out 100 USDT to play each time, specifically choosing the hottest coins recently. Remember two things:
① Run when you double your money (for example, turn 100 into 200 and immediately stop) ② If it drops to 50 USDT
Then cut losses. With good luck, winning three times in a row can roll up to 800 USDT.
(100-200~400~800). But take profit when it's good! Play a maximum of three rounds, stop when you earn around 1100 USDT, as this phase relies heavily on luck, don't be greedy!
Second step: When you have more money, go for a combination strategy (starting at 1100 USDT)
At this time, split the money into three parts to play different strategies:
1. Quick in and out type (100 USDT)
Only play 15-minute fluctuations, in steadier coins like Bitcoin/Ethereum. For example, if you see Bitcoin suddenly surge in the afternoon, immediately follow the trend, earn 3%-5% and run, like a street vendor, making small profits through large sales.
2. Zen-like desperation type (15 USDT weekly)
Every week, regularly take 15 USDT to buy Bitcoin contracts (for example, if Bitcoin is now at 50,000 dollars, you think it can rise to 100,000 in the long run). Treat it like a piggy bank; don't panic if it drops; wait for half a year to a year, suitable for those who don't have time to monitor the market.
3. The main play is trend trading (the rest is all in)
When you see a big market trend, make a strong move! For example, if you find that the Federal Reserve is going to cut interest rates, Bitcoin may soar, go long immediately. But you must think ahead: how much to earn before you run (for instance, double your investment), how much to accept as a loss (at most 20%). You need to be able to read the news, understand technical analysis; beginners should not rush in!
Important reminder:
① Bet a maximum of 1/10 of your capital each time, don’t go all in!
② Every trade must set a stop loss!
③ Play a maximum of 3 trades per day; if you feel restless, go play a game
④ Withdraw profits when you reach your target, don’t think about 'earning one more wave'!
Remember: Those who turn things around with this method are tough, they are tough on others and even tougher on themselves.
Keep an eye on: WIN CVC CETUS
