For newcomers to the cryptocurrency world, the easiest first addiction is contracts.
You can earn from both rises and falls; leverage is fascinating, but many people step on their first mine in the market without understanding the rules.
Today, I will dissect contracts from the most practical perspective—listening may not make you rich, but it might help you avoid deadly risks.
① What exactly is a contract? Explained in one sentence
You are not buying coins; you are betting on the direction.
If it rises, go long; if it falls, go short.
You earn from volatility, not from assets.
It sounds simple, but those who get liquidated are often the ones who “think they understand.”
② Two types of contracts, newcomers only need to remember one
Perpetual contract → The only option for newcomers.
No expiration date, clear rules, easy to grasp the rhythm.
Futures contract → Has a settlement deadline, complex rhythm, not suitable for beginners to try.
③ Four core concepts, do not place orders if you don't understand
Leverage: Amplifies profits but also accelerates losses.
Opening/closing positions: The switch for entering and exiting.
Number of contracts: How much ammunition you have.
Forced liquidation: The market declares that you are out.
④ Iron rules for risk control for beginners—if you want to survive, you must execute
Leverage should not exceed 5 times.
Single trade loss should not exceed 3% of the principal.
Only trade BTC and ETH, stay away from miscellaneous and meme coins.
Try to trade during the day; the early morning hours are high-risk for liquidation.
⑤ One last heartfelt truth
Contracts can double your money, but they can also bring you to zero overnight.
What gets amplified is not your skills, but your mindset.
Those who can go far are always: correct direction + strict discipline + risk control first.
Learn not to lose first, then think about how to earn.
Stability is the fundamental skill that ordinary people should practice.
$XNY $AIO $SOL
