Any contract carries the risk of liquidation.
The horror of contracts lies in the fact that it is not a 50% gambling win/loss on long and short positions but rather has a larger losing side. Moreover, the longer you hold, the larger the losing side becomes.
Holding a contract for a month is basically a sure loss, whether you go long or short, you will lose.
Once leverage (contract) is opened, time becomes your enemy.
The reason is the existence of the liquidation mechanism.
Looking back at historical data, you'll find that at most points in time, whether you go long or short, the trend will reach a liquidation point at some moment. In other words, the long-term trend has nothing to do with contract players because you would have been liquidated before reaching that 'long-term.'
For example, if the current price is 0.5, and you go long with 10x leverage, the liquidation point is 0.45.
Assuming you are optimistic about long-term development, and your prediction is correct, the price rises to 2.5 after a year, a 5x increase; your 10x contract would gain 50 times. But that's a long time from now.
Now, suppose you also predict correctly in the short term, after going long for 5 minutes, the price rises to 0.55. It increased by 10%, and your 10x long yields 100%.
But the problem is, you cannot guarantee that the price fluctuation won't drop to the liquidation point of 0.45. The longer the time, the greater the chance of hitting the liquidation point. Moreover, a bear market isn't required; just one day of an unknown reason dropping to 0.45 is enough, and then it immediately rebounds.
Contracts are tools that can only be used for trend trading. Contracts must have stop-losses rather than betting against liquidation. Left-side traders who try to pick bottoms and tops can only use spot trading.
Let's look at this hypothetical case.
1. Startup phase (500U→2000U): Use '10% position + 10x leverage' to engage with new coin launches.
Core logic: Only take 50U (10% of principal) to experiment, locking single losses within 5U (stop-loss at 10%).
50U × 10x leverage = 500U position, target 20% increase (profit 100U).
In August 2025, HTX will launch BOT, 50U with 10x leverage, buy the dip at 15%, rise 30% in 3 hours, earning 150U, rolling to 650U, repeat 8 times to reach 2,100U.
Avoid emotional trading.
2. Explosive phase (2,000U→10,000U): Switch to '20% position + 5x leverage' to chase the big whale's hot spots.
DeFi 2.0 will be launched in September 2025.
Leading coin FLX, 400U principal, 5x leverage (2,000U position), stop-loss 5% (loss of 20U), target 15% (profit of 60U), rises 40% in 3 days, earning directly 1,600U, rolling to 3,700U.
After a 10% profit, immediately move the stop-loss to the cost line to ensure no principal loss.
3. Ultimate phase (10,000U→50,000U): 'Hedging + ladder-style rolling' to guard against black swans.
After each profit, withdraw 30% to hold BTC in spot.
, 70% re-enter with 'position halving method.'
Steps to operate
1. After 10,000U is credited, buy 3,000U of BTC (to anchor against downturns).
2. Split 7,000U into 7 trades, opening 1,000U in ETH perpetual.
(2x leverage = 2,000U position).
3. Stop-loss at 3% (loss of 30U), take profit at 5% (gain of 50U), 4 out of 7 trades need to be profitable to break 20,000U.
Deadly detail: When total assets drop more than 15% (e.g., from 30,000 to 25,500), immediately close 60% of the position, and only restart when the '20% profit protection line' is triggered.
Trap 1: Going all-in on a new coin (someone once went all in with 300U on a MEME coin, liquidated in an hour and owed 200U).
Trap 2: (Not stopping losses after a 15% drop, instead increasing the position, ultimately losing the principal.)
Trap 3: Running away with small profits (taking 1,000U up to 1,500U and withdrawing 1,200U, missing out on the subsequent 10x explosion).
Three iron rules:
1. Use 500U like it's 50U: Never open a position exceeding 10% of the principal, keeping 'zero risk' below 0.5%.
2. Only enter when BTC stabilizes at 68,000U: When the market is stable, the probability of hot coins exploding increases threefold.
3. Profit = Position × Odds × Discipline: The first two determine the upper limit, and the last one determines whether you can survive to '50,000U.'
In the crypto world, 500U is not the principal but rather a 'ticket to leverage with discipline.'
