Cryptocurrency contract trading is a high-risk, high-reward investment method, suitable for investors with a certain understanding of the market. Here are the key points and operational guidelines:

1. Basic Concepts of Contract Trading

Essence: Similar to a betting agreement, predicting the price trend of cryptocurrencies, supporting both long and short positions (choose 'long' for bullish and 'short' for bearish)

Core Mechanism:

Leverage Ratio: 1 Yuan of principal can leverage 10-100 times of funds (mainstream exchanges offer 3-100 times leverage)

Margin: Initial funds must be deposited as collateral (minimum 5 USD for USDT-based contracts)

24-Hour Trading: No market closure time limitation

2. Newbie Operation Process

Platform Selection: Preferably Binance, OKX, and other leading exchanges, must complete two-factor authentication (2FA) and risk assessment

Opening Position Steps:

Transfer USDT to contract account

Select BTC/USDT perpetual contract (best liquidity)

Set leverage ratio (suggested below 5 times for beginners)

Profit and Loss Calculation:

100U principal + 10 times leverage = 1000U operating amount

Asset price fluctuation of 1% = account fluctuation of 10U (yield rate 10%)

3. Key Points of Risk Management

Liquidation Mechanism:

Triggered when maintenance margin rate falls below 0.5%-1%

Calculation Formula: Liquidation Price = Opening Price × (1 ± Leverage Ratio × Maintenance Margin Rate)

Position Control:

Single transaction not exceeding 5% of total funds

Holding no more than 3 types of positions simultaneously

High leverage requires low position (e.g., for 100 times leverage, suggest 0.5% position)

Take Profit and Stop Loss:

It is recommended to set the stop-loss line at 2-3% of the principal

Take profit line at 5-8% of the principal

4. Contract Type Selection

Coin-Margined Contracts:

Using cryptocurrency as margin and settlement currency

Suitable for long-term holders for risk hedging

USDT-Margined Contracts:

Settled in stablecoins like USDT

Reduce the impact of cryptocurrency price fluctuations on margin



5. Common Misconceptions Warning

Leverage Traps:

1% fluctuation under 100 times leverage leads to liquidation

Reference Case: The 2021 LUNA crash led to zeroing out of players using 100 times leverage

Overtrading:

10 trades in a single day can lead to monthly fees of 15%-30%

It is recommended to adopt a trend-following strategy#美国加征关税一 $BTC