Cryptocurrency contract trading is a high-risk, high-return investment method suitable for investors with a certain understanding of the market. Here are the core points and operational guidelines:
1. Basic concepts of contract trading
Nature: Similar to a gambling agreement, predicting cryptocurrency price trends, supporting both long and short positions (choose 'long' for bullish, 'short' for bearish)
Core mechanism:
Leverage multiple: 1 yuan principal can control 10-100 times the funds (mainstream exchanges offer 3-100x leverage)
Margin: Initial funds must be deposited as collateral (minimum 5 USD for USDT-based contracts)
24-hour trading: No market closure time limits
2. Newbie operation process
Platform selection: Prefer top exchanges like Binance, OKX, etc., must complete 2FA and risk assessment
Opening position steps:
Transfer USDT to contract account
Choose BTC/USDT perpetual contracts (best liquidity)
Set leverage multiple (it is recommended for beginners to use below 5x)
Profit and loss calculation:
100U principal + 10x leverage = 1000U operating amount
Asset volatility of 1% = account volatility of 10U (return rate of 10%)
3. Key points of risk management
Liquidation mechanism:
Triggered when the maintenance margin rate falls below 0.5%-1%
Calculation formula: liquidation price = opening price × (1 ± leverage multiple × maintenance margin rate)
Position control:
Single transaction not exceeding 5% of total funds
No more than 3 positions held simultaneously
High leverage requires low position (e.g., for 100x leverage, recommend 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 is 5-8% of principal
4. Choice of contract types
Coin-based contracts:
Use cryptocurrency as margin and settlement currency
Suitable for long-term holders to hedge risks
U-based contracts:
Settled in stablecoins like USDT
Reduce the impact of price fluctuations on margin
5. Common misconceptions warning
Leverage traps:
1% fluctuation under 100x leverage will result in liquidation
Reference case: The 2021 LUNA crash caused players with 100x leverage to be wiped out
Overtrading:
10 transactions in a single day can lead to monthly fees of 15%-30%
It is recommended to adopt a trend-following strategy #以太坊十周年