Can contracts in the crypto world really make money quickly? The answer is yes, but the premise is that you must first avoid those liquidation traps that make beginners "lose everything in one night!"

Many people see contracts as a shortcut to wealth, but newcomers often receive a harsh lesson when they first enter the market.

I have a friend who blindly leveraged 10 times as soon as he got into contracts and was liquidated in less than 3 days, losing all his principal, and regretting it afterward.

Today, I will thoroughly explain the core logic of contract trading and the key points to avoid pitfalls, helping you to take fewer detours💥

First, understand the essence: contract trading does not require actual ownership of the cryptocurrency; the core is to predict market fluctuations.

If you predict a price increase, go long; if you predict a decrease, go short. The logic is simple, but one wrong step can lead to significant losses.

Beginners should first distinguish between two main types of contracts: perpetual contracts have no expiration date, the price is close to spot, and both parties pay fees to each other, making it easier to handle;

Delivery contracts have a fixed expiration date and are settled at the spot price upon expiration, carrying higher volatility risks. Beginners should practice with perpetual contracts for more stability.

Three key concepts must be memorized: leverage is a double-edged sword; a 10x leverage can result in liquidation with just a 10% price change, so it is recommended for beginners to keep it under 5x;

Opening a position is starting a trade, closing a position is ending a trade, and profits or losses are realized at the time of closing;

Forced liquidation occurs when the margin is insufficient, and the system automatically closes the position to prevent you from losing all your principal.

Risk control is the core of long-term profit: the loss on each trade should not exceed 3% of the principal. For example, if the principal is 100,000, the maximum loss is 3,000. Even if you are wrong 3 times in a row, you can still retain 91% of your principal;

Prioritize mainstream coins like BTC and ETH, as they are relatively stable and less susceptible to manipulation;

Try to trade during the day from 9 AM to 6 PM, as the market is chaotic at midnight, and beginners should avoid it directly.

A final reminder: contracts can make quick money, but long-term profitability relies on directional judgment, trading discipline, and strict risk control.

First learn not to lose, then think about making money. It is advisable to practice on a simulated account and start with small funds for real trading.

The market is never short of money-making opportunities. To survive and stay stable is to earn for the long haul🚀

In the past, I stumbled in the dark alone; now the light is in my hands.

The light is always on; will you follow? @不贪的阿 K

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