After experiencing losses in contracts in the crypto world, I summarized three painful insights:

Leverage is a double-edged sword. I used to think that 5x leverage was safe, but in extreme market conditions, a 20% fluctuation can lead to liquidation. The most painful experience was when ETH experienced a flash crash and got liquidated in half an hour; after my principal went to zero, I understood: the leverage ratio must match personal risk tolerance. Newbies are advised not to exceed 3x and always set stop-loss orders.
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 a 15% rebound half an hour later. Now, I write my trading plan in advance and use conditional orders to enforce it, avoiding emotional interference. Remember: the market always has opportunities; as long as you are alive, you have chips.
Position management is crucial for survival. Once went all-in on a coin and faced a black swan event, resulting in a 50% loss in one day. Now following the 5% rule: a single trade does not exceed 5% of total funds, with mainstream coins accounting for over 70%. Reserve 30% USDT to deal with extreme market conditions, only then will there be qualification to average down during a crash.
The true understanding is: contracts are not gambling, but a game of probability. Use spot trading thinking for contracts, focusing on the risk-reward ratio rather than the win rate. Before opening a position, ask yourself: how much risk is this trade worth? Staying alive is essential to wait for your own bull market.