Essential knowledge for entering the cryptocurrency world
Decide whether to engage with contracts after reading this
This article is not meant to teach you how to make money, but to tell you how brutal the path of contracts can be. If you came in with the mindset of getting rich quickly, I suggest you slide away now, because there are no shortcuts here, only lessons of blood and tears.
Contracts are not investments; they are more like a zero-sum game.
What is a contract? Simply put, it is betting on the rise and fall of coin prices with a small amount of money. You might only use $100 to control a position of $10,000. When you get the direction right, your profits will be amplified; but when you get it wrong, your losses will also be amplified, until your principal goes to zero. It feels like dancing on the edge of a cliff, where every step could lead to disaster.
The 3 most common mistakes beginners make:
Heavy betting, ignoring risks: Newbies love to gamble with the highest leverage and the largest principal. Winning makes them feel like geniuses, while losing leaves them devastated. But true contract experts never put all their chips in the same basket.
Frequent trading, chasing highs and cutting losses: The fun and pain of contract trading lie in the speed. When you see the price of a coin fluctuating, you can't help but want to enter the market, resulting in moments of going long and moments of going short, and the transaction fees will drain you dry.
Not setting stop-loss and holding on to luck: This is the most fatal. When your position starts to lose, you think: wait a bit longer, it will come back. The result is waiting until liquidation, and losing everything. Stop-loss is not giving up, but protecting your principal, giving you a chance to fight another day.
Heartfelt advice for beginners:
First learn to protect your principal before discussing profits. Treat contracts as a high-level side quest in your investment journey, not your only game. Start with a small principal, or even practice on a simulation account, to feel the market's fluctuations and pressures.
Always maintain a learning mindset. Understand the cryptocurrency you are trading, learn technical analysis, and understand market sentiment. The path of contracts has no endpoint, only continuously evolving traders.
Finally, what I want to say is that contracts are not the devil, but they will magnify the weaknesses of your human nature. If you do not have enough discipline, a strong mindset, and the ability to learn, please stay away from it. If you are ready, start by protecting your principal and embark on this challenging path. I wish you to become a rational navigator in this vast ocean, rather than a piece of driftwood swallowed by the waves.#杰克逊霍尔会议 #加密概念美股普涨 $BTC $ETH
