Why do some people suggest avoiding contract trading when entering the cryptocurrency space?

In the cryptocurrency space, contract trading (especially leveraged trading) is a very high-risk investment approach. Contract trading allows investors to amplify their trading scale with a small initial capital, but this amplifying effect also means that the risks are similarly magnified. Without effective risk management, investors may face huge losses or even completely lose their invested capital.

Today, I would like to share some valuable insights and trading concepts, hoping to empower individuals in the cryptocurrency space to avoid unnecessary detours and achieve financial freedom as soon as possible.

1. Understand the basic principles of contract trading

2. Set stop-loss and take-profit points

3. Control the leverage ratio

4. Choose the right platform and trading pairs

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