#TradersLeague Recently, the cryptocurrency market has been very volatile, and many of my friends have started researching contract trading. To be honest, high returns also mean high risks, and stories of liquidation are played out every day.

I have a friend, Xiao Li, who recently had high hopes for a coin and opened a long position with 5x leverage. As a result, the market reversed, and he watched his account balance decrease little by little, ultimately leading to liquidation. He told me that at that moment, his mindset completely collapsed, and he felt like he was gambling.

In fact, contract trading is all about mentality and strategy. First, it is essential to control the leverage ratio; beginners should ideally not exceed 3x, as it is easy to be affected by market fluctuations. Second, a stop-loss point must be set to avoid liquidation. Finally, and most importantly, do not go All in! Always keep a portion of your funds available, so that you have room to maneuver during market fluctuations. Remember, the cryptocurrency market is risky; invest with caution!