Having been in the crypto space for 10 years, I must say, I have seen far too many tragedies of 'always losing upon opening and precise liquidation.'
Does this happen to you often? You spot the market trend, open a position with full confidence, and when you return from the restroom, your position is gone!
Contracts are, to put it simply, playing big positions with small amounts of money; it sounds nice, but the essence is leverage!
Leverage amplifies your profits while also amplifying your risks! Originally, you could interact with the market, but with contracts, it’s a win-or-lose situation!
For example, if you have 100 dollars and use 10x leverage, it’s equivalent to controlling a position of 1000 dollars. If the market rises by 10%, your profit doubles! But if the market goes against you by 10%, sorry, you get liquidated, and your account goes to zero!
The contract market is a zero-sum game; every penny you make is a loss for someone else, and vice versa. This is not a struggle between retail investors but a battle between retail investors and large funds!
What truly drives the market is the big players and institutions! They don't care about short-term fluctuations; they focus on the stop-loss positions in the market! They will first wash out the small players, then decide whether to pump or dump the market!
When there are too many long or short positions, big funds will use the volatility to hit the liquidation points of leveraged players! After a batch of people is passively forced out, they will then control the market and move according to their rhythm!
Thus, novices are often the first to be washed out; why? High leverage, positions can't withstand, making them the easiest to harvest!
To survive in the crypto space, remember this: do not trade for profit, but trade for safety!
If you want to make stable profits, first put aside your eager heart that fantasizes about getting rich overnight!
In fact, trading in the crypto space can be said to have the lowest cost.
If it's stocks, a single lot can be a few hundred, and losing once can cost tens.
If it’s futures, a single lot can be over a thousand, and losing once can cost hundreds.
In the crypto contract market, you can open 1U at a time, or even 0.5U. Set a 3% stop-loss, losing just a few dollars at a time.
With such cheap tuition, what’s the rush?
Once learned, the world is yours.
Contract risk: high volatility, easy liquidation.
The benefits of contracts: high volatility, easy to make big profits.
Many novices play contracts without experience and skills, lacking the understanding of the internal relationship between risk and reward.
When you don’t have stable profits, you should respect the high risks and easy liquidation of contracts.
When you can make stable profits, you should be grateful for the high volatility and high returns of contracts.
So, to succeed, you need stable profits.
As someone who has been through it, let me tell you: in terms of trading skills, it mostly involves learning patterns, candlesticks, and technical indicators.
Is this difficult? If mastering these techniques could guarantee profits, then all the top students would be trading experts.
In fact, futures, crypto, and stocks are all about experience.
This experience includes: mindset, how to handle market situations. How to reconcile with yourself during losses and how to boost your confidence during profits.
Therefore, to realize these insights and transition from a novice to an expert in the crypto space, you need to strengthen the following types of training:
1 Focus on one technique or pattern, and operate thousands or tens of thousands of times.
2 High risk in contracts, easy liquidation. Starting with 1U and setting a stop-loss at 3%. Trading 100U thousands of times is no problem. Before achieving stability, contracts have all downsides; once stable profits are achieved, it’s all advantages!
3 100U is tuition; what do you do without tuition?
4 When you can avoid losses and even make small profits, gradually increase the opening amount. 10U. 100U.
Only skill makes a difference!
This year, 2025, is my 10th year of full-time cryptocurrency trading. Last year, I spent a full 11 months doing contracts, growing from 2000u to now over 2 million U, a full 1000 times profit.
In the crypto space, if you want to truly achieve financial freedom and compound interest, methods, techniques, and forming your own profit system are crucial! Once you master it, the crypto space will be like your 'ATM', making money as easy as breathing!
After over 10 years of cryptocurrency trading, my path to wealth is summarized as follows:
The first ten million took the longest and was the most painful, as the trading system was constantly being reshaped and polished, taking a year and a half.
The second ten million took three months.
The third ten million only took 40 days.
The fourth ten million only took 5 days.
75% of the funds were earned in half a year.
Here are some practical suggestions:
Contract trading: Use 100 yuan for contract trading each time, focusing on gaming hot cryptocurrencies. Set take-profit and stop-loss, targeting 100 yuan to 200 yuan, 200 yuan to 400 yuan, 400 yuan to 800 yuan. Remember, at most three times! Because the crypto space requires a bit of luck, going all-in like this can easily make you profit 9 times and lose once! If you clear three rounds with 100 yuan, then the principal comes to 1100 yuan! At this point, you need to consolidate.
In-depth research: Spend time researching and understanding the cryptocurrency market, focusing on the fundamentals, technology, team, and market trends of projects. Understand the risks and potential of different projects.
Diversified investment: spread your funds across multiple promising cryptocurrency projects to reduce the risk of any single investment. Choose projects with long-term growth potential and good fundamentals.
Time holding: Consider adopting a long-term investment strategy, holding tokens of quality projects, and believing in their long-term appreciation potential. The cryptocurrency market is highly volatile, requiring patience and a long-term vision.
Cautiously use leverage: If you choose to trade with leverage, ensure you fully understand the risks of leveraged trading and reasonably control the leverage ratio.
Active trading: actively participate in trading and capture market fluctuations. Understand technical analysis tools and indicators, learn trading strategies, but be cautious of market risks and volatility.
Continuous learning and adapting: The cryptocurrency market changes rapidly, keep learning about the industry and market, and flexibly adjust your investment strategies according to market conditions.
Risk management: Ensure to establish appropriate risk management strategies, including setting take-profit and stop-loss levels, reasonably controlling position sizes, and maintaining sufficient cash flow.
Triple strategy: It is recommended to use a triple strategy to trade in a day, doing two types of orders: ultra-short orders and strategy orders. If the opportunity arises, then go for trend orders.
Ultra-short orders are for quick strikes, working on a 15-minute level: advantages are high returns, but the downside is high risk. Only do it on major cryptocurrencies.
The second type of order, strategy order, is to use a small position, such as 10x 15 dollars, to do contracts around the four-hour level. Use the profits to accumulate and invest regularly in Bitcoin weekly.
The third type is trend orders for medium to long-term trading; enter directly when you see a good opportunity.
With these strategies, you can find your own profit opportunities amidst the volatility in the crypto space.
