Cryptocurrency Contract Entry Practical Guide: A Must-Read for Beginners, Avoid Pitfalls Before Making Profits Many beginners are very interested in contracts, but because they do not understand the rules and lack risk control, they are taught a lesson by the market as soon as they enter. Today, I will explain the essence of contracts, gameplay, and core avoidance logic clearly with straightforward practical logic, which beginners can directly refer to.
1. Core Definition of Contract Trading Core Logic: No need to actually hold the cryptocurrency, you can profit just by judging price fluctuations; if the direction is correct, you earn, if wrong, you lose, the core profit comes from the price fluctuation difference, not from holding assets.
1. Bullish → Go Long
2. Bearish → Go Short
2. Two Mainstream Types of Contracts
1. Perpetual Contracts: No expiration date, can be held long-term, anchored by funding rates and spot prices, both long and short parties pay each other.
2. Futures Contracts: Have a fixed expiration date, settled at the spot price upon expiration (or physical delivery), commonly seen in quarterly and next quarterly contracts.
3. Basic Core Concepts (Must Know)
1. Lot Size: The minimum trading unit of the contract, with different values for different currency pairs.
2. Leverage: Amplifies both profits and losses; a 10x leverage drop of 10% is highly likely to result in liquidation.
3. Open Position: Buy to go long (bullish), sell to go short (bearish).
4. Close Position: End the trade to lock in profits or losses, supports market/limit orders.
5. Liquidation: Automatic closing of positions by the system due to insufficient margin, to avoid account depletion.
4. Key Risk Control Points for Beginners
1. Prioritize trading mainstream currencies (BTC/ETH): High manipulation costs, stable market, low spike risk; small cryptocurrencies have extreme volatility, beginners should be cautious.
2. Focus on daytime trading (9:00-18:00): Around 3 AM is a high liquidation period, market behavior is unpredictable, beginners should firmly avoid this.
5. Core Advice for Practical Combat Contracts can earn quick money, but long-term profits do not rely on luck, the core relies on three points: directional judgment + trading discipline + strict risk control. Beginners should first practice "not losing money skills", establish a solid risk control baseline, and then gradually explore profit logic to steadily establish themselves.
