Contract trading might sound like a magic wand for overnight riches. But the reality is—many beginners are ruthlessly eliminated by the market as soon as they enter. Why? Because they jump in without understanding the basic rules.

Let's break down contracts first. Simply put, it's about betting on how the price moves: going long when expecting a rise to profit from upward movement; going short when expecting a fall to profit from downward movement. You're not earning from the coin itself, but from the gains caused by price fluctuations.

There are mainly two types of trading—perpetual contracts, which have no expiration date and are friendly for beginners, rely on funding rates to keep the price close to spot; and delivery contracts, which have fixed expiration dates and are more suitable for experienced traders.

The key question is: how to survive? The answer is three words—risk control.

Leverage is a double-edged sword. It can amplify your gains but also your losses. The higher the leverage, the more a single adverse move can wipe you out. So always use low leverage to leave yourself room. Next, set stop-loss orders—predefine your maximum loss, and once it’s hit, forcefully exit the position—don’t wait for false hopes. Also, prioritize trading mainstream coins with sufficient liquidity and relatively moderate volatility, which naturally spreads out the risk.

Don’t think of contract trading as a quick ticket to wealth. Those who truly make money never get greedy; they profit through stable operations and long-term accumulation. This path is difficult, but if you choose the right direction, you can establish yourself and survive in the market.