$BTC

ACCOUNT FIRE

Have you ever burned your account? In today's article I share the reasons that lead to account fires.

Spot never burns money because it only buys at a low price and then sells at a high price to make a profit like Vietnamese base stocks.

Only by trading Futures can you burn your account, just like playing derivatives in Vietnam.

What is the reason for the fire?

1. Newcomers joining Future do not yet understand all the parameters such as: risk ratio, deposit, remaining assets, Margin mode, liquidation price, ...

2. DCA continuously aims to reduce losses but the market reverses the trend leading to high risk rate and no more reserve money so it burns.

3. Greed and fear are also what kill your account. When you are not calm enough about your current losses.

The market always has attractive opportunities for players. So we need to know what the limit is on the amount of money we have and the borrowing margin for each investment coin.

I see most of you use loan rates up to x40 and x100. Actually this is too dangerous

You spend $100 and borrow Cross x100 rate, which means you are investing 100 times the amount you have. So the account burns sooner or later.

Cross x10 mode is the max for new players so that's it.

Or Isolated mode will be safer for your account. If there is a fire, it will burn within a certain range, but it will not burn the entire existing property.

In short:

The following parameters need to be well controlled:

1. Cross x10 mode

2. Risk rate is lower than 3%

3. The liquidation price must be 8-10 times higher than the entry price.

4. Failure to continuously avoid DCA leads to the account not having enough money left for the Margin ratio.

Good luck 🍺