I just saw that quite a few new people are asking what futures are and how to avoid getting liquidated, so today I will share some of my personal experiences.

First, it’s important to understand that futures trading is not a simple game. The maximum leverage on exchanges can go up to x100, meaning you borrow a huge amount of money based on your original capital. For example, if you have $1 but use x100 leverage, you have $100 to trade. Sounds attractive, right? But that also means the risk is extremely high. If your prediction is wrong, you will be liquidated and lose all your initial capital.

So, what are futures? They are a way to place orders predicting the price trend. You choose Long if you predict the price will go up, or Short if you predict it will go down. If you’re correct, you make a profit; if wrong, you incur a loss. Almost all cryptocurrency exchanges today offer this feature, although not all coins are listed for futures trading.

I’ve learned a few lessons from my own experience. When trading Bitcoin futures, I only use a maximum leverage of x5. For Ethereum or other altcoins, x3 is enough. Why? Because these coins tend to be more volatile, making it easier to get liquidated if the leverage is too high.

The most important thing is to use SL (Stop Loss) and TP (Take Profit). SL is the cut-loss point, and TP is the take-profit point. Most exchanges allow you to set these automatically to control risk. I recommend always setting them before entering a trade.

Another tip is to split your capital into multiple smaller positions. Instead of putting all your money into one order, divide it to increase your chances of surviving a loss. And remember to set the liquidation point as far away as possible, so that a small wipeout doesn’t trigger an email about asset liquidation.

Finally, this is just sharing personal experience, not investment advice. Futures can bring high profits but can also cause you to lose everything in an instant. Be sure to do thorough research before participating in this type of trading. If you want to stay updated on the market and trading signals, follow me.