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I have worked for several years to turn 5000 yuan in capital into 25 million. I'm not here to show off; I want to talk about the pitfalls I've encountered over the years and the insights I've summarized.
**Money should be spent in portions, don't go all in**
I divide the principal into five parts, only moving one part at a time. This way, even if I make a wrong call, I won't lose everything at once. I set strict rules for myself: if I lose 10%, I withdraw immediately, without any luck-based thinking. If all five are wrong, I only lose half, but as long as I win a few times, the returns can multiply several times. When I'm in a bind, my mindset remains stable because I still have some capital left.
**Do not go against the trend**
Buying the dip when the market is falling? That's looking for death. The real opportunity lies in the pullback during an upward trend; buying low is a thousand times safer than trying to catch the bottom.
**Stay away from those skyrocketing coins**
Whether it's mainstream coins or altcoins, don't touch those that have surged too quickly. Coins that rise vertically will also correct sharply, and the one picking up the pieces is likely you.
**MACD is my old friend**
DIF and DEA golden cross below the 0 axis and break through the 0 axis, buy signal. If there is a death cross above the 0 axis and it moves down, reduce your position without hesitation.
**Margin call is a trap**
Don't try to make up for losses! The more you try to recover, the deeper the hole you dig, and in the end, you might lose everything. Remember: cutting losses is something you do when you're losing, while increasing your position is something you do when you're making a profit.
**Volume speaks**
When the price breaks out at a low level with increased volume, it usually indicates that a significant market movement is about to occur.
**Grasping the trend is grasping fate**
I am watching the daily line, 30-day line, 84-day line, and 120-day line. Once any of these lines begins to turn upward, the direction of the operation will be clear.
The cryptocurrency market is filled with both risks and opportunities. Learn to manage money, observe trends, and select coins; even small investors can turn their fortunes around. Don't ask me how to get in touch; doing your own homework is more important than anything else.
I have some hard-learned lessons about averaging down—honestly, the more I added, the worse it got.
Everyone wants to catch the bottom, but buying the dip during a pullback is actually the right approach.
I have to admit, splitting your positions is much more reliable than going all in.
Cutting losses sounds easy, but when it comes time to do it, it really hurts.
I’ve spent a lot of time watching the charts, but the market can still turn around and smack you in the face.
If you're going to stop loss, then just do it. Why go for Margin Replenishment and seek punishment?
I also look at MACD, but to be honest, it's still easy to be misled by the lines; volume is more reliable.
Don't say "All in"; I didn't listen back then, and now I'm still in debt.
I've tried buying low on pullbacks, but it's really tough on the mental side; I always feel it will fall further.
You really have to avoid coins that are skyrocketing; the outcome for those who catch a falling knife is too tragic.