I have been involved in cryptocurrency trading for five or six years, and I understand that there are both benefits and risks in this field, so one should not be anxious but rather calm down to face it; mindset is often the main factor determining success.
Sharing 3 tips to help you avoid liquidation risks:
1. Controlling position size is key
Never go all in! When trading contracts on BN, it is recommended that the capital used for each position does not exceed 10% of the total capital. For example, if you have 10,000 USDT, just use 1,000 USDT to open a position. Operating with light positions can greatly reduce risk, so even if the market fluctuates, you won't get liquidated immediately.
2. Strictly set stop-loss and take-profit levels
Before opening a position, be sure to set stop-loss and take-profit levels in the BN contract interface! Stop-loss is to prevent losses from widening, and take-profit is to lock in profits in a timely manner. For example, if you buy a Bitcoin contract, you can set a stop-loss when the price drops by 5% and a take-profit when it rises by 10%. This can effectively avoid greed and emotional trading.
3. Closely monitor market dynamics
The market changes in the crypto world are super fast! Pay more attention to the information section on BN, as well as various official communities. Understand the impact of major news and policy changes on the market. When encountering severe market fluctuations, observe first and then act, don’t blindly follow the trend.~
