After experiencing contract losses in the crypto world, I summarized three points of blood and tears insights:

Leverage is a double-edged sword. I once thought that 5x leverage was safe, but in extreme market conditions, a 20% fluctuation can lead to liquidation. The most painful experience was when ETH had a sudden drop in half an hour, and I realized that after my principal was wiped out: the leverage ratio must match personal risk tolerance. Beginners are advised not to exceed 3x and always set stop-losses.
Emotions are the enemy. FOMO and panic selling are the biggest sources of loss. Once, after a sharp drop in BTC, I panicked and closed my position, only to see it rebound by 15% half an hour later. Now, I write a trading plan in advance and use conditional orders to enforce it, avoiding emotional interference. Remember: there are always opportunities in the market, and as long as you are alive, you have chips.
Position management is crucial for survival. I once went all-in on a coin and faced a black swan event that halved my investment in a single day. Now, I follow the 5% rule: no single trade exceeds 5% of total capital, and mainstream coins account for over 70%. I reserve 30% USDT to cope with extreme market conditions, so I only have the qualification to add to my position during a sharp decline.
The true understanding of the Dao is: contracts are not gambling, but a game of probability. Use spot thinking for contracts, focusing on the risk-reward ratio rather than the win rate. Before opening a position, ask yourself: how much risk is worth taking for this trade? As long as you are alive, you can wait for your own bull market.