Many newcomers to crypto often ask me about what futures trading is and whether they should participate. Today, I will share some personal experiences regarding this type of trading.

In summary, futures (or futures contracts) are a form of order placement that uses leverage on trading platforms. You predict whether the price trend will go up (Long) or down (Short). If your prediction is correct, you make a profit; if wrong, you incur a loss. Almost all major exchanges offer this feature for most coins.

But what is the danger here? The maximum leverage can go up to x100. This means you only need $1, and the platform will lend you an additional $99 to make a total of $100 for your order. The problem is, when you lose, you must repay the borrowed money. If the loss exceeds your initial capital, your assets will be liquidated (liquidation) and you will lose 100% of your funds. That’s why trading futures requires extreme caution, especially for beginners.

So how can you control risk when trading futures? First, you need to understand two important concepts: SL (Stop Loss) and TP (Take Profit). All platforms have automatic features that allow you to set these points. When placing an order, always use these features to avoid excessive losses or sudden liquidations.

Based on my experience, I have a few tips for those new to futures trading:

When trading BTC, only use leverage up to x5. For ETH and other altcoins, x3 or lower is reasonable. Another tip is to divide your capital into multiple parts to increase your ability to withstand losses. Pay attention to the liquidation level — try to set it as far away as possible to avoid being liquidated with small market fluctuations.

Remember, these tips are just personal advice and not investment recommendations. If you're interested in futures trading, do thorough research before starting. I will continue sharing more knowledge and market signals.