This summer, I saw others making money with contracts and thought to myself, "I can do it too," so I opened a 5x leverage and bought a certain coin. As a result, it dropped 10% the next day, and my margin was insufficient, leading to a direct liquidation. My initial capital of 10,000 was reduced to only 1,000. I threw my phone on the sofa and scolded myself: "Why are you so greedy?"
Later, I read (The Survival Rules in Cryptocurrency), and only then did I understand that "high-leverage contracts are gambling." The article stated: "Do not participate in high-leverage contracts; it is no different from gambling. Once you engage in high leverage and contracts, you will always be entangled by your inner demons, making it hard to stop."
I have set three "taboos for contracts":
① Don't use high leverage: use at most 2x leverage and only use "spot" funds for contracts. For example, if you have 10,000 in spot, use 20,000 for contracts. Even if you incur losses, it won't be too damaging.
② Don't deal with "unknown" coins: only trade contracts for mainstream coins (BTC, ETH), not for small coins. Small coins are too volatile and can easily lead to liquidation.
③ Set "take profit and stop loss": contract trading must set take profit and stop loss. For example, if you buy a contract worth 10,000, set a 5% take profit and a 3% stop loss. Even if you incur losses, it won't be too much.
Last month, I used 2x leverage for a BTC contract, which increased by 3%, earning me 600 yuan. Although it's not much, at least I'm no longer experiencing "liquidation".
There is a saying in the crypto world: "Contracts are not a 'money-making tool', but a 'shortcut to losing money'". If you want to avoid "contract liquidation", you might want to follow me.@币圈罗盘 I will share methods for "low-risk contracts" every day, so we can all make a "guaranteed profit together". Next time, I'll tell you the story of how I made 1000 yuan using "2x leverage". Remember to check it out~
#加密市场反弹 $BTC $ETH
