How can novices play contracts well?
Many novices who have just entered the cryptocurrency circle want to make a lot of money quickly and cannot tolerate the low returns and long time of spot trading.
Therefore, they choose to use contract trading for leverage operations. But I would like to remind novices that it is best not to rush to participate in contract trading for the time being.
The volatility of the cryptocurrency circle is extremely large, and losses may occur if you are not careful. People who have just started trading often have weak psychological tolerance, and once they lose money, they may fall into deep self-blame and negative emotions. If you have already clarified your risk tolerance and are willing to use part of your assets to try, then you can continue to learn.
Many contract novices tend to mistakenly think that this is just a simple big and small DU bet, but ignore an important detail: the control of the market.
When the overall market is not good, still insist on bullishness, such a decision can easily lead to losses. Before trading contracts, please make your own judgment on the market. We can use the overall operation of the cryptocurrency market, recent reports on the currency you want to trade, and predictions of the future operating range of the currency as the basis for our trading contracts.
The most exciting part of contract trading is how you judge the rise and fall of a certain currency in the future. You can choose the appropriate leverage multiple to increase the rate of return.
For example, leverage risk: This is easy to understand. Suppose you use 10x leverage to trade. If the price drops by 2%, your loss will be magnified 10 times to 20%.
And the fluctuation range of these transactions is not as small as that of stocks. It is common to rise or fall by 1% or 2%. Sometimes, once the big players on the platform decide to buy or sell a lot, the price will fluctuate sharply.
Therefore, novices must understand the leverage risk. But novices should also remember not to rush to use high leverage. After all, the higher the multiple, the greater the risk. A small fluctuation may cause your position to explode. It is recommended that novices set the leverage multiple below 10 times when trading contracts.
Finally, if you are a pure novice and you are excited to rush into the currency circle when you see BTC hit a record high before, then I suggest you pay attention to me first, learn the knowledge of the currency circle with me, and make up for your basic skills. Laying a solid foundation can go further.
