The old town in the afternoon of the weekend hides the creases of time — when the sunlight crawls over the gray tiles, the moss in the cracks of the bluestone slabs glows warm. I stepped into the mottled alley following the footsteps of my childhood, and the figure I bumped into made me pause my breath: it was my little brother who used to wait for me with hot soy milk.
In his memories, his eyes were full of indulgence, but now his complexion is waxy yellow, and the exhaustion in his eyes is heavy and unshakeable. During casual conversation, I learned that his father passed away suddenly, his mother is bedridden, and his young sister is still waiting to be supported. The heavy burden of life has him running around, and after hearing from the old neighbors that I have been struggling in the encryption field for many years, he hesitated for a long time before speaking: 'I want to enter the industry and support this family.'
Looking at his eager yet confused gaze, I felt a mix of emotions in my heart - this industry is not a 'get-rich-quick' gamble, but a long-term game of cognition and mindset. Too many beginners enter the market with the obsession of 'turning the tables', yet they haven't even grasped the basic logic, ending up as 'market fodder'. Today I will share some essential tips, especially for friends like Brother Xiaohua who want to establish themselves in this field, steady progress is the only way out:
Funding rate: the 'invisible regulator' of perpetual contracts
This is the core difference between perpetual contracts and spot trading. Positive and negative fluctuations directly reflect the balance of market bullish and bearish forces. Simply put, when bullish sentiment is strong, bulls need to pay fees to bears; conversely, bears pay fees to bulls. It settles every 8 hours, seemingly insignificant but can affect the cost of long-term holdings. It is recommended that beginners first observe the fee trends before deciding whether to enter the market, to avoid losing profits due to fee fluctuations.
Leverage and fees: the 'two major pitfalls' for beginners
Leverage is a 'double-edged sword', with commonly seen leverage of 1-125 times in the market, meaning that both profits and risks will be amplified simultaneously. I have seen too many people take on high leverage with a 'let's gamble' mentality, only to be forced out by slight fluctuations. My view is: beginners should start with 1x leverage, focusing on technical analysis and mindset cultivation, rather than relying on leverage to 'gamble for luck'.
In addition, the difference in transaction fees cannot be ignored. Trading is divided into 'taking orders' and 'placing orders', with different fee rates (usually between 0.02% and 0.05%). Over the long term, accumulated fees will greatly impact final returns. It is recommended to choose platforms with transparent and compliant fee structures, while also developing the habit of 'reducing ineffective trades' to avoid excessive fees from frequent buying and selling.
Liquidation and stop-loss: the 'last line of defense' for survival
This is the core principle I repeatedly emphasize: those who do not set stop-losses will eventually be eliminated by the market. Liquidation occurs when your losses reach the margin bottom line, causing the system to automatically close your position, which means your invested capital may be lost completely. I have seen too many cases of overnight poverty due to not setting stop-losses, especially for friends with family responsibilities, who cannot risk their principal. My practical experience is: set a clear stop-loss point before entering the market, control the risk of a single trade within 1%-2% of total capital, so that even if the market reverses, you can retain the capital to make a comeback.
In fact, the crypto market is like the alleys of an old city, seemingly complicated, but there are traces to follow. It never favors those who are eager for quick success but only loves those who are willing to settle down to learn and endure loneliness. After listening to my explanation, Brother Xiaohua's eyes were less confused and more resolute - he said he would start with the basics and not rush for results.
I believe that as long as you find the right method and maintain the right mindset, you can definitely establish a foothold in this industry. And you, sitting in front of the screen, may also be facing life's pressures, may be curious about the crypto market, or may have stumbled in trading before. It's okay, follow me, I will continue to share practical skills, market analysis, and avoidance guides, helping you understand the underlying logic of the crypto market from a professional perspective.
Remember: there are no shortcuts in this industry, but there are paths. May we all move forward with reason, harvest through persistence, protect those we want to protect, and live as we wish to be ~ Next time we will discuss 'How beginners can build their own trading system', see you then!
