I see many of you asking about futures, so today I want to share some of my experiences.

First, what is trading futures? Simply put, it’s a method of placing orders predicting price trends with leverage. You can choose Long (predicting an increase) or Short (predicting a decrease). If your prediction is correct, you make a profit; if wrong, you incur a loss. Most trading platforms nowadays have this feature, but note that not all coins are listed for futures trading.

But the interesting part is also the dangerous part. The maximum leverage can go up to X100, meaning you only need $1 but can control $100. Sounds great, but in reality, if you go the wrong way, you’ll be liquidated (your assets will be wiped out) and lose your entire principal. Therefore, trading futures without fully understanding the risks is very dangerous, especially for beginners.

I’ve seen many young traders jump in with high leverage and end up losing everything. So I want to share some lessons I’ve learned.

First is SL (Stop Loss) and TP (Take Profit). These are two very important features that platforms already support. When placing an order, you must set these two to automatically close the position when reaching the threshold. Without them, you’re likely to get emotional when seeing losses and lose control.

Regarding leverage, I advise caution: if trading Bitcoin, a maximum of x5 is enough; for Ethereum and altcoins, x3 is reasonable. Don’t be too greedy because the risk increases exponentially.

Another tip is to divide your capital into multiple smaller trades to better withstand price fluctuations. Also, pay attention to the liquidation level—try to keep it as far from the current price as possible, so that after scrolling on your phone, you won’t get an email notification that your assets have been wiped out.

Finally, this is just shared experience, not investment advice. I always recommend doing thorough research before participating. If you want to follow more signals and market analysis, you can follow to stay updated.