How much leverage should be used for perpetual contracts to ensure profits without losses?
How much leverage should be used for perpetual contracts to ensure profits without losses?
Hello everyone👋! Today we must talk about the super popular perpetual contracts in the cryptocurrency circle🔥! As contracts that never “expire”, as long as you don't get liquidated or close your position, you can hold them forever, making it a “long-term player” in the crypto world～ But many people are stuck on a key question🤔: what is a reasonable leverage to use when trading?
Yesterday, while chatting with fellow enthusiasts, some people regularly use 50x or 30x leverage🚀. Taking Bitcoin as an example, 30x leverage requires 16U, 50x leverage requires 10U, and 200x only needs 2.5U💱. However, I strongly recommend👉 using only 100x leverage! Don't underestimate leverage, the risks and rewards between 1x and 200x are vastly different💥! While 1x leverage is stable, a single Bitcoin contract requires over 470 U, and without significant price increases, you're bound to lose, as transaction fees can “eat away” your profits😣. Since you're playing with leverage, you should maximize the advantage; 100x leverage is just right, balancing risk and reward💪!
⚠️ There's a big pitfall here! Many people challenge high-risk contracts with meager funds, insufficient margin leads to liquidation with even a slight market fluctuation💥, and subsequent price surges won’t benefit you! Therefore, when engaging in perpetual contracts, make sure to prepare sufficient margin to leave yourself a “safety line”🛡️!
💡 Here are a few super practical tips:
1️⃣ Cut losses in time❌, don’t hold on stubbornly!
2️⃣ Use isolated margin mode to lock in risks🔒, protect your principal!
3️⃣ Set a small daily target🎯, withdraw once you earn enough; little by little, it adds up nicely!
Some friends use a principal of 5000U, making a steady profit of 50 - 100U daily💰, easily accumulating 1500 - 3000U in a month! Even if encountering a major market movement, conservatively estimating a 20-day standard, it can still yield substantial profits🥳!
