Have you ever wondered what trading futures is and why so many people talk about it? I used to wonder the same thing before stepping into the world of leveraged trading.

Simply put, futures, also known as contracts or futures contracts, are a way to predict the price trend of cryptocurrencies. You can choose to go Long if you think the price will rise or Short if you forecast it will fall. It sounds simple, but in reality, it’s much more complex, especially when you’re new to this type of trading.

The difficulty lies in the fact that most exchanges offer leverage up to x100. What is leverage? It allows you to borrow money based on your initial capital. For example, if you have only $1 but use x100 leverage, you can trade with $100. However, the danger is that if your prediction is wrong, you not only lose the borrowed money but could also be liquidated, meaning you lose your entire initial capital.

I’ve seen many beginners get wiped out because they don’t fully understand the risks. Therefore, before trading futures, you must learn how to manage risk. First, there are two important concepts: SL (Stop Loss - the point to cut losses) and TP (Take Profit - the point to lock in profits). All trading platforms provide automatic features for these two points to protect you.

Based on my experience, if you’re new to futures trading, don’t be too greedy. For Bitcoin, it’s advisable to use leverage of x5 or less; for Ethereum and other altcoins, x3 is reasonable. Another tip is to diversify your capital, spreading it across multiple rounds instead of betting everything at once. This helps you better withstand losses.

Pay special attention to the liquidation point—it’s better to have it far away. You don’t want to get a liquidation notice just by glancing at your screen, right? So, think carefully before participating in futures trading on any exchange.

This is just sharing experience, not investment advice. Do your own research and understand thoroughly before getting started.