Many people enter the crypto market, but their understanding of contract trading remains superficial. Today, let's discuss those overlooked yet life-threatening details.

**Fee Rate Issues: Ledger details determine success or failure**

Perpetual contracts have a "funding rate" mechanism, settled every 8 hours. When the rate is positive, longs pay shorts; when negative, shorts pay longs—essentially a price anchoring mechanism to prevent the contract price from deviating too far from the spot price.

But there's a deep trap here: many traders only focus on whether their direction is correct, completely ignoring the erosion caused by fee rates. During market volatility, you might have correctly judged the direction, but due to the accumulation of fee costs, you could end up with unrealized losses. Sometimes, by looking at account data, you realize that most of your gains are actually eaten up by transaction fees. This isn't a small-number game; it's an invisible cost that directly impacts your returns.

**Leverage multiples: Tool or gambling device**

Exchanges offer leverage options from 1x to 125x, which is perfectly fine. The problem is that most beginners come in thinking, "I want to use the maximum leverage to make a big move."

A simple calculation makes it clear: opening with 10x leverage, a 10% price drop will lead to liquidation; with 100x, a 1% drop will wipe you out. High leverage amplifies not just gains but also risks—it magnifies your psychological fear by 100 times.

Those who survive in this industry never greed. If your single position exceeds 10,000 USD, it's best not to exceed 10x leverage. This is not conservatism; it's survival.