Many people enter the crypto space first losing money and then making money, actually because they haven't understood a few key principles clearly. Today, we'll start with the basics of contract trading. Once you understand these things, you'll be able to avoid half of the detours.

**Contract Trading: Clarify Two Concepts First**

Perpetual contracts have no delivery date and can be held indefinitely; delivery contracts have a fixed expiration date. For beginners, perpetual contracts are more suitable for practice because you don't have to rush to close positions.

But there's a trap here: leverage does not equal doubling. For example, 10x leverage sounds great, but as soon as the market moves 5% in the opposite direction, your principal loses 50%. Therefore, beginners are advised to start with 5x leverage, to first develop trading logic and mental resilience.

**The Stop-Loss Line Must Not Be Loosened**

Every trade should set a stop-loss, usually at 5%-10%. Specifically, if your principal is 8,000 yuan, your single stop-loss should not exceed 800 yuan. If floating losses exceed 10% of your principal, close the position unconditionally. This is not about being cowardly, but about protecting your capital. Without capital, even the best opportunities are just illusions.

**How to Choose a Trading Strategy**

If you want to trade the trend, look at the 4-hour moving average chart to judge direction: 50-day MA > 100-day MA > 200-day MA indicates a buy signal; the opposite suggests a sell. Also, combine this with MACD crossing above the zero line and RSI > 50 for confirmation. This increases your chances of a successful entry.

For swing trading, remember this rule: during a decline, don't rush to buy the bottom; wait until three consecutive bullish candles stabilize above the previous low before buying. During an uptrend, don't chase the high; if the price deviates more than 20% from the moving average, wait for it to retest the moving average before entering.

**How to Divide Your Position with 8,000 Yuan Principal**

Suppose your principal is 8,000 yuan, and you use 5-10x leverage, you can open a contract position of up to 80,000 yuan. This reduces the risk of liquidation by 50%. After making profits, how to handle them? Take out a portion of the profit first. For example, if you earn 1,600 yuan, withdraw 320 yuan, and keep the rest for further trading.

When building a position, also do it in batches: initially use 40% of your principal, i.e., 3,200 yuan, to try a position with a 5% stop-loss (loss of 160 yuan). If the price breaks previous highs, add another 30% (2,400 yuan). Finally, keep 30% (2,400 yuan) in reserve for sudden drops.

**Practice with BTC**

Using BTC as an example, only trade mainstream coins like BTC or ETH, as these have the highest liquidity and are over three times more resilient to drops than altcoins.

Step 1: Confirm the trend. A bullish MA arrangement plus MACD golden cross indicates a buy; if it's a bearish arrangement, don't try to bottom fish.

Step 2: Opening position. Use 5x leverage, with 3,200 yuan of principal to buy BTC at 26,000 yuan. Set stop-loss at 25,700 yuan (loss of 300 yuan), and take profit at 28,000 yuan (profit of 400 yuan).

Step 3: Daily risk control. Check your position before market close, ensuring it doesn't exceed 10 times your principal. As the price rises, move your stop-loss upward to protect your profits.

**The Last 3 Life-and-Death Lines**

Some coins are strictly off-limits: coins that surge sharply in the short term—90% of these are pump-and-dump schemes; leverage over 10x has a liquidation rate exceeding 60%; and never go all-in—always keep 30% cash in hand.

These suggestions are not meant to limit your earning potential but to ensure your survival. Live long enough, and making money will naturally follow.