Can perpetual contracts really double small capital?

Leverage Effect: Perpetual contracts allow traders to use leverage, which means you can control larger trading positions with a smaller amount of capital. For example, with 10x leverage, an investor only needs to invest 10% of the capital to control 100% of the assets. This method can amplify profits, but it also amplifies losses.

Market Volatility: The cryptocurrency market is highly volatile, and rapid price fluctuations provide short-term traders with opportunities to profit. Through accurate market judgment, traders can achieve rapid capital growth in a short period.

Two-Way Trading: Perpetual contracts allow traders to go long and short, meaning that regardless of whether the market is rising or falling, traders have the opportunity to profit. This flexibility enables small capital traders to seek profit opportunities under different market conditions.

Risk Management: Although there is a chance to double the capital, risk management remains crucial. Using stop-loss orders, setting reasonable leverage levels, and diversifying investments can help reduce potential loss risks. Excessive leverage can lead to liquidation; therefore, managing positions wisely is key to success.

Funding Rate: The funding rate mechanism of perpetual contracts also affects traders' profits. The funding rate is a periodic payment between longs and shorts; understanding this mechanism can help traders better manage holding costs, thereby improving profitability.