The essence of crypto contracts is actually quite simple—identify the right direction to place your order, go short if you expect a decline, go long if you expect a rise. You don't need to actually hold the coins. It's all about predicting price fluctuations.

Contracts are divided into two main types. One is perpetual contracts, which have no expiration date, relying on the funding rate mechanism to keep the price aligned with the spot market; the other is delivery contracts, which settle at a specified date and time. Most beginners start with perpetual contracts.

But what can really threaten your life isn't these concepts. It's the lack of these key understandings.

**Leverage is a magnifying glass; it amplifies both profits and losses.** 10x leverage sounds exciting, but in reality, a 10% adverse price movement can wipe out your margin. There's no room for error.

**Stop-loss and position management are your lifelines.** Before opening a position, you must know the maximum loss you can tolerate. Most losses happen because of overconfidence—holding on when you should stop, ending up with nothing.

**Newcomers must keep a close eye on mainstream coins.** Top-tier coins like Bitcoin and Ethereum have deep liquidity and relatively predictable volatility, unlike smaller or fake coins, which are easily manipulated or can go to zero overnight. Using mainstream coins to understand market rhythm makes risk much more manageable.

**Be cautious during nighttime trading hours.** When liquidity dries up, price swings can become extremely fierce. Beginners should avoid risking their lives during those times.

Here's a heartfelt truth: Contract markets can indeed be profitable, but those who survive long-term are never driven by boldness alone. They rely on stricter discipline, more solid risk control systems, and a healthy respect for the market.

Remember this rhythm: first learn how not to lose money, then think about making money; first use small amounts to feel the market pulse, then consider increasing your position. Treat contracts as a serious tool, not casino chips—only then can you sustain and succeed in the long run.