Five taboos in cryptocurrency contract trading:

Lending for cryptocurrency trading: Using borrowed money for contract trading is a behavior that almost all experts unanimously oppose. Once the market trend is contrary to expectations, not only may the principal be lost, but also debt may be incurred. In the cryptocurrency circle, this is regarded as one of the most undesirable practices.

Heavy position operation: In contract trading, excessive positions can easily lead to rapid account explosion. Even investors who have a deep understanding of the market should avoid heavy positions to avoid irreparable losses.

Frequent trading: Trying to capture every market fluctuation through frequent buying and selling is often not worth the loss. High handling fees plus market uncertainty may eventually lead to a serious shrinkage of funds.

Ignoring risk management: Not setting stop loss and take profit points is a taboo in contract trading. An effective risk management strategy can help investors exit in time under unfavorable circumstances and protect the remaining capital.

Lack of understanding: Entering the market without fully understanding the contract trading rules, mechanisms and exchange characteristics is tantamount to a blind man touching an elephant. It is crucial to be familiar with the operating principles of the contract and the specific terms of the trading platform.