Last night, I lay in bed and scrolled through the profits and losses leaderboard of altcoin contracts. Goodness, it was quite tragic. I saw a brother shorting $STO get hit with a 42.8% loss, and I felt sorry for him.
To be honest, dealing with altcoin contracts is like dancing on a tightrope; one misstep and you can fall to pieces. Just look at today's market, $BTC only dropped 0.3%, but $SUI plummeted -4.9%, and $FET fell even further at 6.5%. This volatility is even more thrilling than a roller coaster 🎢
I remember a friend from last year who saw a certain altcoin rise by 20% and immediately opened a 10x long position, only to be sent home by a big bearish candle the next day. He told me, "Bro, I thought I had found the secret to wealth, but what I caught was the noose."
At this point in time, the North American market is trading, and liquidity is relatively thin. Altcoins are more likely to experience extreme movements in such an environment. Look at $KITE, which dropped 9.4% today, and $ONT fell 8.8%. If you were using leverage, it would essentially be game over.
【Risk Warning】The leverage of altcoin contracts is like borrowing high-interest loans to trade stocks; profits are yours, but losses can wipe out even the principal. Especially for those small coins with trading volumes of only a few million, a single large order from a market maker can hit your stop loss.
To be honest, if you really want to trade altcoin contracts, I suggest:
1. Keep your position size within 5% of total capital
2. Use leverage not exceeding 3x
3. Set strict stop losses; exit if you lose 20%
4. Choose coins with at least 10M trading volume
Currently, $SUI has dropped to 0.8479, and from a technical perspective, it indeed reached a key support level, but in this kind of market, I would rather miss the opportunity than try to catch the bottom. After all, preserving capital is much more important than making quick money.
NFA, for reference only, investing involves risks.
❓ What do you think, at this position, is it time to catch the bottom for altcoins or should we wait? Type 1 for catching the bottom, 2 for waiting, and 3 for those already stuck.
#Cryptocurrency #BearMarket #crypto #BullMarket