Why are most people in the cryptocurrency space not suitable for trading contracts?

Contracts are a beast for most people, but a tool for wealth for a small number of people. If you want to engage in contracts, first understand the following content.
1. Assuming a liquidation probability of 0.1%, the total probability of liquidation after 1000 trades reaches 63%, and the probability after 2000 trades is 87%. The probability of liquidation is merely a theoretical assumption. In actual operations, since price trends usually follow a normal distribution, as the leverage multiplier increases, the probability of liquidation grows exponentially. This means that the probability of liquidation with 10x leverage is significantly greater than that with 5x leverage.
2. Assuming a transaction fee of 0.1% for each trade and a win rate of 50%, after 1000 trades, the principal is very likely to be reduced to zero.
3. Suppose you have 10,000 yuan. If you made a profit of 50% the first time and then a loss of 50% the second time, you would have 7,500 yuan left. If you had a loss of 50% the first time and then a profit of 50% the second time, you would also have 7,500 yuan left. If you had a loss of 90% in a certain trade, you would need to earn a 900% return to break even.
As for the margin splitting method and the stop-loss line, there is no essential difference between the two; both reduce risk while also lowering returns.
4. In the spot market, 10% of retail investors can make a profit, while in the futures market, 3% of retail investors can make a profit.

There are approximately three types of people who profit from contracts:
1. It is about using small funds for short-term trading, relying on win rates to make profits. Strict discipline is required, and once you make money, you should withdraw it.
Second, it relies on the profit-loss ratio to make money. Even with a win rate below 50%, if the profits exceed the losses, then substantial money can be made.
3. It relies on rolling positions, like Tony turning 50,000 into millions, the college girl who made 10 million by shorting Luna with Dogecoin going up 400 times during lunch, and Liangxi turning 1,000 into 10 million, all achieved through rolling positions.
I have played with all three of these, and I went from 8000 to millions in the crypto world. Below, I will share how I did it:
If you want to treat cryptocurrency trading as a second source of income, wish to share a piece of the pie in the crypto world, and are willing to invest time in growth and learning, then you shouldn't miss this article. Read it carefully, as each point is the essence of the crypto sphere.
It can be said that whether it's a bull market or a bear market, this 【trading rule that must be followed】 can be helpful to you! Later, we will discuss an essential tool for Bitcoin trading - BOLL, which can determine whether it's a bull market or a bear market. If used well, making 30 times in a month is quite simple!
Before every transaction, everyone must first ask themselves three questions:
First, think about what your reasons are for opening an order each time?
Second, do you often encounter profitable trades turning into losses?
Third, do you often find yourself holding positions until liquidation and not knowing what to do? These three questions are unavoidable for anyone involved in trading; cryptocurrency enthusiasts have encountered them to some extent. Everyone has gone through this, especially beginners, who are often quite blind to the situation. The essence lies in their failure to establish a mature trading mindset and trading system. 🅱️iya is the world's first multi-asset trading wallet, which allows for easy real-time conversion of mainstream fiat currency into digital currency. It also provides a secure and convenient cash-out solution, effectively addressing freezing and asset withdrawal issues. Users can easily convert their assets into cash and withdraw through the U platform.
What is a trading system? It is a self-methodology for trading, opening positions, closing positions, increasing positions, decreasing positions, taking profits, and stopping losses; essentially, a set of rules of your own. The most direct benefit of having such a system is that all your trades have a basis, greatly reducing the chances of making mistakes and the amount of losses. Secondly, you don't need to monitor the market in real-time. By strictly following the system, you have a clear understanding of your targets and potential losses, which allows you to remain stable regardless of market fluctuations.
So how do you establish your own trading system? The most important thing is to have a good mindset. The cryptocurrency market is a 24-hour trading market, with unpredictable fluctuations and massive volatility. You need to have strong psychological qualities when trading. A person's trading habits, psychological endurance, strategy execution ability, and the ability to overcome greed and fear vary in different indices, determining that each person is suited to their own unique trading system.