In the past 24 hours, the cryptocurrency market has exploded—
As soon as the news of the Federal Reserve's interest rate cut came out, BTC instantly plunged from $94,500 to $92,000, with $302 million in contract funds evaporating across the network, and 114,600 people liquidated.
To put it simply, the most dangerous thing in the futures market is not the market itself, but stepping on landmines.
Avoiding these fatal pitfalls can help you survive longer.
High leverage is a death sentence.
There are always people greedily wanting to double their investments with more than 20x leverage, forgetting that the liquidation threshold for 100x leverage is less than a 1% fluctuation.
Recently, ETH's overnight spike had a fluctuation of 0.8%, directly wiping out a batch of long positions.
For ordinary people with small positions, 3-5x leverage is more reliable, as it can withstand fluctuations in funding rates while leaving enough room for adjustment.
Not cutting losses is equivalent to stubbornly holding on.
Coinglass data shows that traders who set stop losses have a survival period 3.2 times longer than those who do not.
Set a stop loss line when opening positions, and move it up to protect profits after making gains; this is the iron rule of survival.
Full positions are even more dangerous; remember the formula: single position = principal × 2% ÷ leverage. For 10,000 U with 5x leverage, the maximum single order is 400 U; even if BTC drops 2%, it won’t trigger a forced liquidation.
Emotional trading is the most treacherous; the transaction cost of retail investors chasing highs and cutting losses is 3 times higher than their profits.
Real winners write their trading plans in advance and execute mechanically according to opening conditions and profit targets.
Finally, remember that the hour before major news is a peak time for spikes; mainstream exchanges + stop losses + position control—don’t forget this life-saving trio.
Follow me for practical, actionable trading techniques; see you in the Binance chat room.
