Contracts can make people rich overnight, but they can also make people lose everything in an instant.
Recently, a fan came to me and told me about his experience. He worked hard in a factory for half a month and saved some money by eating frugally. As a result, after get off work, he couldn't wait to deposit the money into Binance, thinking that he would become rich overnight by relying on high-leverage contracts. As a result, he fell into the trap of the dealer.
For those newcomers who have just entered the cryptocurrency circle, I have to remind you: Don't play with 10x, 20x, or even 100x leverage right away. As soon as the money is deposited, it may explode overnight and everything will be gone! Those who like to open high leverage are either gambling, like to bet big with a small investment, and are addicted to all-in; or they are novices who don't know how to operate at all, and they don't know how to plan their positions, and the contract ends before they understand it.
When playing contracts, position management is the top priority! You have to maximize the benefits of funds and avoid risks at the same time. So how to manage positions? It's very simple, you have to use money flexibly. For example, if you want to open a position of 10,000U, you can open 10 times with 1,000U, or 20 times with 500U. But remember, you must set a stop loss, 1%-3% is fine. In this way, you use 10% of the funds to fight for 100% of the profit, and the loss is within your tolerance.
But if you directly use 10,000U to open 10 times or 20 times, that little market fluctuation can take you away. You have no tolerance rate and no trial and error capital, and it is easy to lose everything. By then, your mentality will be distorted.
Therefore, using high leverage to borrow funds that exceed your principal several times for speculation is common, and making money is rare. If you want to play contracts, you must first understand the basics, such as leverage multiples and funding rates. If you operate blindly without knowing anything, you will have to blame the tool for harming you if you get a liquidation in the end. So! Newbies must plan their positions reasonably!
If you always miss the mark and don't know how to operate, you need to meet two conditions if you want to follow Dan: first, you need to be strong in action and do what you say; second, you need to be able to check your phone at any time, so that you don't miss the message. Like + leave a message, I will help you make a lot of money!
