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 operations (choose 'long' for bullish, 'short' for bearish)
Core mechanism:
Leverage: 1 yuan of principal can leverage 10-100 times the funds (mainstream exchanges offer 3-100 times leverage)
Margin: Initial funds must be deposited as collateral (minimum 5 USDT for USDT-based contracts)
24-hour trading: No market closure time limits
2. Beginner operation process
Platform selection: Preferably top exchanges like Binance, OKX, double authentication (2FA) and risk assessment are required
Opening position steps:
Transfer USDT to the contract account
Choose BTC/USDT perpetual contracts (best liquidity)
Set leverage (recommended for beginners below 5x)
Profit and loss calculation:
100 USDT principal + 10x leverage = 1000 USDT operating amount
Asset fluctuation of 1% = account fluctuation of 10 USDT (return rate of 10%)
3. Key points of risk management
Liquidation mechanism:
Triggered when the maintenance margin rate is below 0.5%-1%
Calculation formula: liquidation price = opening price × (1 ± leverage × maintenance margin rate)
Position control:
Single transaction not exceeding 5% of total funds
Do not hold more than 3 varieties simultaneously
High leverage requires low position (e.g., for 100x leverage, a position of 0.5% is recommended)
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-based contracts:
Using cryptocurrency as margin and settlement currency
Suitable for long-term holders for risk hedging
USDT-based contracts:
Settled in stablecoins like USDT
Reduce the impact of price fluctuations on margin
5. Common misconceptions warning
Leverage trap:
1% fluctuation at 100x leverage means liquidation
Reference case: The 2021 LUNA crash led to zeroing out of players with 100x leverage
Overtrading:
10 trades in a single day can reach a monthly fee of 15%-30%
It is recommended to adopt a trend-following strategy
The opportunity has arrived, profits are soaring! Brother Cheng will help you seize the moment, doubling your wealth is not a dream
Continue to pay attention to: SPK, FIDA
