When trading contracts in the cryptocurrency market, you need to pay attention to these key points:
First, you must have a risk awareness. Contract trading has high leverage; while it can double your profits, it can also wipe out your capital. Assess how much risk you can bear before investing heavily; otherwise, with just a small mistake, your principal could be lost completely.
Setting profit-taking and stop-loss levels is extremely important. Set your points in advance; if you are in profit, secure it, and if you hit your stop-loss line, don’t hesitate, exit quickly to prevent further losses.
Don’t forget about fund management; don’t put all your money on a single trade or type of contract. Diversify your funds and operate under different strategies.
Always pay attention to the market; news and policy changes in the cryptocurrency world have a significant impact on trends. For instance, when a country strictly controls digital currencies or when there's a technological innovation in a specific coin, you need to be aware of it.
Trading strategies are also essential. Short-term, medium-term, and long-term trades each have suitable scenarios, and you need to choose based on the market and your own situation. Avoid unnecessary frequent trading; when emotions run high, mistakes are inevitable.
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