In the cryptocurrency space, stories of contract liquidation and whipsaws to zero are common. Knowing the high risks, why do some still rush in? Participants candidly state: contracts are not untouchable, but 90% of players do not grasp the survival rules.

One, high leverage: Casino-like death spiral

Most people view contracts as a “wealth amplifier,” yet selectively ignore their essence as a “capital shredder.”

• Leverage trap: With 125x leverage, a 0.8% price reversal triggers liquidation, and even slight market fluctuations can lead to total loss.

• Whipsaw trap: The exchange's common tactic of “instant whipsaw” often leaves investors bankrupt in milliseconds.

Truth: High-leverage contracts are essentially short-term price gambling, lacking support from a trading system; liquidation is just a matter of time.

Two, Spot vs Contract: Two survival rules

“Spot losses can be deadly, contract floating losses must lead to liquidation” — this humorous remark reveals a fatal cognitive gap:

• Spot thinking: Allow a 30% or even 50% drawdown, hoping for a cyclical rebound.

• Iron rule of contracts: Under the forced liquidation mechanism, even 3x leverage can be forcibly liquidated due to a 0.5% fluctuation.

Key: Contract players must have a strict stop-loss awareness, otherwise they will be strangled by the market.

Three, survival formula for experts

Real contract traders follow three main principles:

1. Risk preposition: Calculate the maximum acceptable loss and set a stop-loss line;

2. Leverage adaptation: Use 1-5x low leverage to gain margin for error;

3. Strategy closed loop: Build a complete system that includes entry, risk control, and profit-taking.

Four, the correct way to approach contracts

The core value of contracts lies in:

• Capital efficiency: Use a small amount of margin to cover a larger position;

• Risk hedging: Mitigate spot position risks through both long and short operations.

Warning: If contracts are treated as tools for gambling, they will ultimately become the “liquidity fuel” for exchanges.

Five, soul-searching question: Are you really suited to trade contracts?

Self-check three elements:

✅ Do you have a clear trading strategy?

✅ Can you execute stop-loss unconditionally?

✅ Can your psyche withstand an instant drop to zero?

If the answer is unclear, it is advisable to stay away from contracts — although spot trading is slow, it at least leaves room for recovery.

Conclusion

Contracts are not a monster, but a financial tool that requires precise control. Only by recognizing the essence of leverage, strictly adhering to discipline, and respecting the market can one avoid becoming “liquidity to be cut.” After all, in a zero-sum game market, every impulse you have could be someone else's feast.$ETH $BTC #币安Alpha上新 #加密市场反弹