Many new friends who are just entering the crypto contract world often hear others say 'liquidation', 'doubling', 'ten times leverage', 'going long or short', and feel confused. Today, I will explain in the simplest way how to make money with crypto contracts.
1. What is contract trading?
Contract trading is essentially betting on direction: if you judge that the future coin price will rise, you 'go long'; if you judge it will fall, you 'go short'.
Moreover, crypto contracts usually come with leverage, meaning if you have 100U, you can operate as if you have 1000U (10x leverage), so a 1% increase means you make 10%, and conversely, losses occur more quickly.
2. How to make money with crypto contracts?
Make money from price fluctuations
Going long: open a long position at a low price → profit when it rises
Going short: open a short position at a high price → profit when it falls
Regardless of bull or bear markets, as long as your directional judgment is correct, there is profit to be made.
Use leverage to amplify profits
Short-term quick in and out
Many people engage in high-frequency contract trading, relying on technical analysis, candlestick patterns, and indicator signals to make swings or even scalp, possibly trading dozens of times a day. As long as the win rate is stable and risks are well controlled, profits can be considerable.
3. Why can some people make a lot of money while others get liquidated?
The core points are three:
Directional judgment ability: Can you understand trends and position yourself in advance?
Position control + risk awareness: Don't go all in! Reasonable leverage control is essential for survival.
Emotional management: Don't be greedy, don't be afraid, don't gamble! The easiest target for the market is emotional trading.
4. In summary:
Crypto contracts are not a 'sure-win' shortcut, but a double-edged sword.
The core of making money is following the trend + risk control + skills + mindset.
Contracts can allow you to earn what others make in a year in just one day, but they can also lead to losing everything overnight.
So, if you don't understand, don't rush in. Watch more, learn more, practice more, and don't let your principal become your tuition.
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