Having been in the crypto world for 10 years, to be honest, I’ve seen too many tragedies of 'always losing when opening a position, precise liquidation'.
Is this often the case? You see the market, confidently open a position, and when you come back from the bathroom, your position is gone!
In simple terms, contracts are about playing with small money for large positions, which sounds nice, but essentially it’s leverage!
Leverage amplifies your profits, but it also amplifies your risks! Originally, you could interact with the market, but with contracts, it’s all or nothing!
For example, you have 100 units, using 10x leverage means you control a position of 1000 units. If the market rises by 10%, your profit doubles! But if the market moves against you by 10%, sorry, you're directly liquidated, and your account is wiped out!
The contract market is a zero-sum game; every penny you earn is a loss for someone else, and vice versa. This is not a battle among retail investors but a game between retail investors and large funds!
What truly drives the market are the big players and institutions! They don't care about short-term fluctuations; they focus on the stop-loss points in the market! They will first wash out the small players, then decide whether to push up or crash the market!
When there are too many long or short positions, big funds will use volatility to hit the liquidation points of leveraged players! After a batch of people are passively exited, they will come to control the market, moving at their own pace!
So novices are often the first batch to be washed out; why? High leverage, positions can't withstand it, making them the easiest to harvest!
If you want to survive in the crypto world, remember one thing: don’t trade for profit, but trade for safety!
If you want to achieve stable profits, first let go of that urgent desire for quick success and overnight wealth!
In fact, trading in the crypto world is arguably the lowest cost.
If it’s stocks, a single contract could be a few hundred, losing tens in one go.
If it's futures, a single contract could be over a thousand, losing hundreds in one go.
In crypto contracts, you can open positions as low as 1U, or even 0.5U. With a 3% stop-loss set, you might lose a few units in one go.
Such cheap tuition, what’s the hurry?
Once you learn it, the world is yours.
Contract risk: high volatility, easy to get liquidated.
Benefits of contracts: high volatility, easy to make big profits.
Many novices play contracts without experience and skills, failing to balance the relationship between risk and reward.
When you don’t have stable profits, you should respect the large risks and easy liquidation of contracts.
When you can achieve stable profits, you should be grateful for the benefits of high volatility and high returns in contracts.
So, to succeed, you need to achieve stable profits.
As someone who has been through it, I can tell you: in trading, technically, it’s about learning patterns, candlesticks, and technical indicators.
Are these difficult? If mastering these techniques could make money, then all the top students would be trading experts.
In fact, in futures, the crypto world, and stocks, experience is the most important.
This experience includes: mindset, how to handle market situations. How to reconcile with yourself during losses, and how to boost confidence during profits.
So, realizing these points, to go from a novice to an expert in the crypto world, you need to strengthen the following types of training:
1 Identify a technique or pattern, operate it thousands or tens of thousands of times.
2 Contract risk is high, easy to get liquidated. So starting with 1U, set a stop-loss at 3%. Trading 100U thousands of times is not a problem. Before achieving stability, contracts have all the disadvantages; once you achieve stable profits, all these are advantages, right?
3 100U is the tuition fee; what do you do without tuition?
4 When you can avoid losses and even make small profits, gradually increase the position size. 10U. 100U.
Only practice makes perfect!
This year, 2025, marks my 10th year of full-time cryptocurrency trading. Last year, I spent a full 11 months trading contracts, growing from 2000U to over 2 million U, a complete 1000-fold profit.
In the crypto world, if you want to truly achieve financial freedom and compound interest, methods, techniques, and forming your own profit system are crucial! Once mastered, the crypto world will be like your 'ATM', making money as easy as breathing!
After over 10 years of trading cryptocurrencies, I summarize my wealth journey as follows:
The first ten million took the longest and was the most painful, as the trading system was continuously 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 took only 5 days.
75% of the funds were earned in half a year.
Here are some practical suggestions:
Contract trading: Trade contracts with 100 units each time, focusing on hot coins. Set take-profit and stop-loss targets: aim to turn 100 units into 200 units, then 200 units into 400 units, and 400 units into 800 units. Remember, no more than three times! Because the crypto world requires a bit of luck, playing like this can easily earn you 9 times, then lose it all in one go! If you pass three rounds with 100 units, then your principal will reach 1100 units! At this point, you need to settle down.
In-depth research: Spend time studying 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 potential cryptocurrency projects to reduce the risk of a 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 perspective.
Use leverage cautiously: If you choose to trade with leverage, make sure to fully understand the risks of leveraged trading and control the leverage ratio reasonably.
Active trading: Actively participate in trading and capture market fluctuations. Understand technical analysis tools and indicators, learn trading strategies, but be aware of market risks and volatility.
Continuous learning and adaptation: The cryptocurrency market changes rapidly, keep learning about the industry and market, and flexibly adjust your investment strategy based on market conditions.
Risk management: Ensure that appropriate risk management strategies are in place, including setting take-profit and stop-loss levels, controlling position sizes reasonably, and maintaining sufficient cash flow.
Triple strategy: It’s advisable to use a triple strategy for day trading, making two types of orders: ultra-short and strategy orders. If opportunities arise, then enter trend orders.
Ultra-short orders are used for quick strikes, with the advantages of high returns and the disadvantage of high risk. Only trade Bitcoin at the aunt level.
The second type of order, strategy order, is to use a small position, like 10x 15 units, to trade contracts at the four-hour level. Use the profits to accumulate and make regular investments in Bitcoin each week.
The third type is trend orders for medium to long-term trading; if you see a good opportunity, just enter directly.
Through these strategies, you can find your own profit opportunities amid the volatility of the crypto market.
