📢 Gate Square #MBG Posting Challenge# is Live— Post for MBG Rewards!
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1️⃣ Research the MBG project
Share your in-depth views on MBG’s fundamentals, community governance, development goals, and tokenomics, etc.
2️⃣ Join and share your real experience
Take part in MBG activities (CandyDrop, Launchpool, or spot trading), and post your screenshots, earnings, or step-by-step tutorials. Content can include profits, beginner-friendl
After experiencing losses in contracts in the crypto world, I summarized three painful insights:
Leverage is a double-edged sword. I used to think that 5x leverage was safe, but in extreme market conditions, a 20% fluctuation can lead to liquidation. The most painful experience was when ETH experienced a flash crash and got liquidated in half an hour; after my principal went to zero, I understood: the leverage ratio must match personal risk tolerance. Newbies are advised not to exceed 3x and always set stop-loss orders.
Emotions are the enemy. FOMO and panic selling are the biggest sources of loss. Once, after a sharp drop in BTC, I panicked and closed my position, only to see a 15% rebound half an hour later. Now, I write my trading plan in advance and use conditional orders to enforce it, avoiding emotional interference. Remember: the market always has opportunities; as long as you are alive, you have chips.
Position management is crucial for survival. Once went all-in on a coin and faced a black swan event, resulting in a 50% loss in one day. Now following the 5% rule: a single trade does not exceed 5% of total funds, with mainstream coins accounting for over 70%. Reserve 30% USDT to deal with extreme market conditions, only then will there be qualification to average down during a crash.
The true understanding is: contracts are not gambling, but a game of probability. Use spot trading thinking for contracts, focusing on the risk-reward ratio rather than the win rate. Before opening a position, ask yourself: how much risk is this trade worth? Staying alive is essential to wait for your own bull market.