Recently, my fren Xiaoya shared her frustrating experience in Bitcoin Futures Trading. Although she accurately judged the rise trend of Bitcoin and went long, the market's instantaneous Fluctuation forced her to Close Position, and then the market surged significantly, leading to a loss of 30% of her principal in just a few days.

This situation is not uncommon in cryptocurrency Futures Trading. Many traders, even if they correctly predict the market direction, still suffer losses. The root of the problem often lies hidden in some less obvious rules of the exchange.

Futures trading is essentially a zero-sum game, with the exchange as the rule maker, and the profits of traders coming from the losses of other participants. Even if the market direction is judged correctly, losses may still occur due to the following three hidden traps:

1. Funding Rate: This is not just an ordinary transaction fee, but a balancing mechanism between long and short positions. When the rate is positive, long positions need to pay fees to short positions; vice versa. If the funding rate in one direction exceeds 0.12% for two consecutive days, it usually indicates that the market is experiencing extreme sentiment, and going against the trend may be easier to profit.

2. Actual liquidation price: Many traders mistakenly believe that when using 10x leverage, a price drop of 10% will trigger a liquidation. However, the exchange charges additional forced liquidation fees, resulting in the actual liquidation price being 1%-1.5% lower than the theoretical value. This seemingly small difference can lead to a complete loss of principal, leaving no opportunity for recovery.

3. High Leverage Trap: Although 100x leverage may seem to bring substantial returns, the fees and funding costs are calculated based on the enlarged position. If the position is held for more than 3 hours, these costs may gradually deplete the principal. High leverage is more suitable for ultra-short-term trading, and it is recommended to exit promptly when profits reach 2%-4%, and never hold positions overnight.

To protect profits, there are two key strategies: first, only use 40% of the profits when increasing positions, keeping 60% as a safety cushion. Second, be wary of "precision blasting," as major institutions may exploit your stop-loss positions and leverage information to target the market.

I personally suggest adopting a "combination strategy": utilizing medium to short-term contracts to capture market fluctuations, while using medium to long-term spot investments to stabilize returns and hedge risks. In Futures Trading, maintaining patience and caution is more important than pursuing quick profits.

The cryptocurrency market is ever-changing, but as long as we grasp the right strategies and knowledge, we can find our way in this field full of opportunities and risks. I hope these insights can provide some inspiration and guidance for everyone.