There is a strange thing in the cryptocurrency world: at the beginning of December, Bitcoin only dropped by 5%, yet 270,000 people across the network were liquidated, and 1 billion dollars disappeared in an instant, but then some people continued to open positions. The root cause is simple — not understanding whether contracts are tools or gambling devices.
Retail investors are often misled by "5x leverage": with a capital of 5,000 U, they dare to open a 20,000 U ETH long position without setting a stop-loss, effectively pushing their leverage above 20 times, and when the market moves slightly, they get forcibly liquidated.
In contrast, experts treat contracts as hedging tools, for example, using short positions to hedge against spot risks, with profits coming from the liquidation of retail investors.
Experts spend 80% of their time waiting for signals like MACD golden cross and increased trading volume, while retail investors frequently open positions and pay fees.
The core of survival is "restraint": when the funding rate is positive, do not chase long positions; when others greedily increase their positions, hold back; set a 5% loss limit for a single loss, and let profits run with a trailing stop.
Contracts are not gambling; blindly going all in is.
Those who know how to use the Kelly formula to calculate position size and enter based on technical signals win through probability.
Stop rushing around like an "ATM"; steady control of the rhythm is what makes a winner.
Follow me for practical skills that can be implemented, see you in the Binance chat room.
