Ten years in the cryptocurrency space, I also suffered a lot of losses at the beginning. I have simply described my successful experiences into 8 core suggestions: first, ensure survival, then make money. You can avoid at least half of the detours in the cryptocurrency space $FHE
1. Three basics to learn for beginners
1. Core concepts of futures trading
Perpetual contracts (no delivery date) vs. delivery contracts (with expiration date), beginners should practice with perpetual contracts first
Leverage ≠ doubling: a 5% reverse fluctuation with 10x leverage results in a 50% loss of principal, it is recommended to start with 5x
Stop-loss must be set: set a stop-loss of 5%-10% for each trade (e.g., for a principal of 8000 yuan, single stop-loss ≤ 800 yuan)
2. Choose the right platform
Only choose the top 3
Fee comparison: for spot trading choose below 0.1%, for futures pay attention to funding rates (the lower the better)
3. Iron rules of risk management
No holding onto losing trades: unconditional stop-loss if floating losses exceed 10%, keep the principal, do not fear missed opportunities
2. Trading strategy: earn certain money
1. Two rules for trend trading
Moving average judgment: in the 4-hour chart, if the 50-day line > 100-day line > 200-day line → go long; conversely, go short
Indicator assistance: enter when MACD is above the 0 axis with a golden cross + RSI > 50, higher win rate
2. Wave trading mantra
Do not catch falling knives: wait for 3 bullish candles to stabilize before the previous low to buy
Do not chase highs in an uptrend: do not chase if deviated more than 20% from the moving average, wait for a pullback to the moving average
3. Capital management: 8000 yuan split position method
1. Leverage usage
Beginners use 5-10x: with a principal of 8000 yuan, can open contracts worth up to 80,000 yuan (10x leverage), reducing liquidation risk by 50%
Handling floating profits: after earning 20%, withdraw 20% of the profits (e.g., earn 1600 yuan, withdraw 320 yuan), operate with the remaining funds
2. Gradual position building
Initially use 40% (3200 yuan) to test the position, stop-loss at 5% (loss of 160 yuan)
Add 30% (2400 yuan) after breaking the previous high, keep 30% (2400 yuan) to cope with a crash
4. Practical steps with BTC as an example
1. Choose the target: only trade mainstream BTC/ETH (high liquidity, bearish resistance > 3 times that of altcoins)
2. Determine the trend: bullish moving averages + MACD golden cross → go long; bearish arrangement → do not catch falling knives
3. Position opening operation: open 5x leverage, buy 26000 yuan BTC with 3200 yuan, stop-loss at 25700 yuan (loss of 300 yuan), take profit at 28000 yuan (profit of 400 yuan)
4. Daily risk control: check positions before market close (not exceeding 10 times the principal), adjust stop-loss (protect profits as price rises)
5. Risk control: 3 lines of life and death
1. Avoid 3 types of minefields
◦ Short-term skyrocketing coins (90% are manipulated by insiders), high leverage (liquidation rate over 60% for over 10x), all-in positions (keep 30% cash)
