Can the crypto market be participated in, and can contracts actually be touched? This is a question that newcomers cannot avoid. $PIPPIN
Many people get excited when they hear about contracts, but without understanding the rules and risks, they get eliminated right at the first step. $BEAT
First, let's clarify the concepts. $RIVER
Contract trading is essentially not about buying coins, but about judging the price direction.
If you are bullish, go long; if you are bearish, go short. You earn from the volatility, not from holding itself.
There are mainly two types of common contracts.
One is perpetual contracts, which have no expiration time and bring the price closer to the spot through funding rates.
The other is delivery contracts, which have a clear expiration date and settle according to the rules.
Most newcomers encounter perpetual contracts.
Understanding a few basic concepts is crucial.
Leverage will amplify both profits and losses.
Opening a position is establishing a long or short position.
Closing a position is ending the trade and locking in the results.
When the margin is insufficient, the system will trigger a forced liquidation to avoid the account going negative.
What truly determines survival is not judgment but risk control.
Leverage should be kept at a lower level as the higher the multiple, the smaller the margin for error.
Set limits on single losses in advance; if wrong, exit rather than holding on stubbornly.
Prioritize mainstream assets with good liquidity, as volatility is more controllable.
Try to avoid periods of poor liquidity and extreme emotions, especially for newcomers.
Contracts are not a shortcut, but a tool.
Whether you can use it long-term depends on whether you respect the rules.
First learn to control risks, then talk about efficiency, so the path can be walked steadily.
This market is hard to navigate alone.
Now, I have a repaired road here; will you walk it?
