We have already mentioned that many Venezuelans are attracted to Binance by screenshots of astronomical profits. At Eneas BB, we will expose one of the major predators on Binance: I'm talking about FUTURES.
Remember three major rules, which you must imprint into your subconscious:
1. Protect your capital: Do not convert all your capital into a currency you don't even understand the function of. An ideal option is to store your money in stablecoins such as $USDT and $PAXG (Gold), which will allow you to stay calm until you gain more information.
2. Have a project: It's ideal to have a realistic goal when investing money. Be aware that a account that doubles your initial investment is already exceptional. Don't trust projects promising 1000x returns.
3. Have availability: Remember, this isn't a casino. Don't play with your money if you're investing. Make sure your basic needs are covered before investing.
WHAT ARE FUTURES?
In this case, we're not buying a coin with our dollars (USDT) to convert it into another coin like SOL or LINK. We're essentially signing a contract where you bet whether the price will go up (Long) or down (Short).
THE DOUBLE-EDGED SWORD: LEVERAGE
This is where the magic happens, as it allows the user to access a larger amount of money and multiply their profits, but also lose all their money.
Example: If you use 10x leverage, with $10 you can trade as if you had $100.
But if the price moves 10% against you, you lose all your money. In the normal market (Spot), if a coin drops 10%, you still have your coin (you only lose 10%). In Futures, it disappears.
DIFFERENCES YOU SHOULD CONSIDER:
1. Liquidation: This is the moment when Binance closes your position because your margin no longer covers the loss. Many act impulsively and add more capital to keep their position open, which is a mistake if you have little experience and limited capital.
2. Profit when everything crashes (Short): This is the real advantage. If the market collapses, you can make money by betting on the decline. But it's like trying to catch a falling knife.
3. Availability: Yes, you can withdraw your money whenever you want, as long as your position hasn't been closed. However, fees for keeping your position open or Funding charges will slowly eat into your balance. Another major enemy if you lack experience and sufficient capital.
4. Understand your lender: Even though you don't see it as a bank statement, the risk of liquidation is the final payment. If the market moves against you, your lender (Binance) will reclaim their loan by closing your position and keeping your collateral (your real money) to ensure they don't lose money.
ADVICE BEFORE USING FUTURES:
1. Not for beginners: If you don't know how to read a chart or understand trends, you're essentially flipping a coin.
2. Practice with the Simulator: Binance offers a feature to trade with fake money. If you can't consistently profit there for a month, don't touch your real dollars.
3. The 1% Rule: Professionals NEVER risk more than 1% of their total capital in a single trade. If you risk your entire capital, you're not a trader—you're a gambler. If you're determined to do it and have gained experience, use a very small amount.
4. Don't be swayed by rumors: It's common for beginners to be lured by supposed opportunities to get rich quickly. These are usually speculations with no research or foundation.
Here at Eneas BB, we don't promise you'll become a millionaire, but we do promise financial health.