Why do so many people in the cryptocurrency world love to trade contracts? To put it simply, it’s all about making quick money!
For those who love to gamble, trading contracts is as exciting as online gambling. You might work hard for a month to earn ten thousand, while someone in the contract market uses that same ten thousand to trade with a thousand times leverage. If the price goes up by just one point, they can make ten thousand; if it goes up by ten points? That’s a hundred thousand, earning in a few minutes what you make in a year! Who can resist such temptation?
Of course, some might say, what if the market moves against you and you lose everything? At this point, you have to think in reverse: they can lose nine times on that hundred thousand, but as long as they get it right once, they profit. In the cryptocurrency world, extreme price movements of 1-2% in a second are common; if you’re lucky, you could make your monthly salary in just one second!
This is why so many people like to trade contracts in the cryptocurrency market, hoping to get rich quickly. In this impatient society, most people are unwilling to slowly accumulate wealth and would rather take high risks for a gamble.
However, there are also some who are more cautious; they operate with larger positions but use lower leverage. Although their returns may not be as high as those of gamblers, 7-8 out of every ten trades they make are profitable.
That said, the contract market is not a joke; liquidation is a frequent occurrence. In the past month, the liquidation amount in the cryptocurrency contract market reached as high as 20 billion dollars! This is no small sum, indicating that whether you are trading with small or large amounts, you must be extremely careful in the contract market.
So, how can one avoid liquidation in the contract market? The key lies in position management!
Liquidation often occurs due to excessively high leverage and full position trading. Therefore, when trading contracts, you must control your position and leverage carefully. When leverage is high, your position should be very low to ensure the safety of your funds.
Remember, no matter how the market fluctuates, we must protect our position safety. The market will always stir at some point, but the safest strategy is to place yourself in a solid fortress. You can occasionally peek out to feel the market pulse, but you must never expose yourself at the forefront of risk.
As a seasoned cryptocurrency investor, I’m sharing my experiences and insights. Interested in the cryptocurrency world but don’t know where to start? Click on my avatar to see my profile and witness the moment of miracles together.
