Fans often ask me: "Bro, I clearly saw the right direction, but I held the position for four days, and just the funding fees alone deducted 1,000 USDT. In the end, I got liquidated. As soon as I closed the position, the market took off. Such a loss..."

I only replied: "You're not losing to the market; you're losing because you don't understand the platform's game rules."
Many people trade contracts, only focusing on price rises and falls, but completely ignoring the trap rules behind them. Today, I’ll explain the core pitfalls clearly to help everyone avoid them:
1. Funding Fee Trap: Don’t think you don’t lose if you don’t move your position! Contracts charge funding fees three times a day (8:00, 16:00, 24:00). If you stand in the wrong direction, you will keep losing money. A friend held a full long position for two days, losing hundreds of USDT daily, and finally got liquidated. The next day, the market surged, and he regretted it. It’s recommended to avoid high-fee periods, hold positions for no more than 8 hours, and prioritize the side with lower funding fees.
2. Liquidation Price Misconception: Don’t think that 10x leverage requires a 10% drop to be liquidated. In reality, a 5% drop can trigger liquidation, as the platform adds transaction fees, making the liquidation line closer than you expect. It’s advised to use isolated margin mode, control leverage at 3-5x, and leave more margin.
3. High Leverage Trap: 100x leverage seems exciting, but in fact, transaction fees and funding fees are calculated based on the borrowed amount. Even if you profit, after deducting fees, you might still lose money. Remember: short-term high leverage, long-term low leverage.
To make money in the crypto space long-term, don’t gamble on the market; first, understand the rules.