Discussing the pros and cons of trading contract altcoins and mainstream coins
The screenshots above are two trades made in the past few days, for reference only.
Mainstream Coin Contracts: Seeking steady progress
Pros:
High liquidity: Trading volumes for BTC/ETH and other major coins are huge, with low slippage and minimal impact from large orders.
Controllable volatility: Affected clearly by institutional funds and macro policies, technical analysis is effective, suitable for medium to long term.
Low liquidation risk: 5-10x leverage can yield significant profits, with the liquidation price far from the current price.
Cons:
Limited returns: Bull market gains often lag behind altcoins, and high leverage increases risk.
Capital cost: Long positions in perpetual contracts require paying a positive rate (e.g., 6.5%), which erodes profits.
---
Altcoin Contracts: High Odds Speculation
Pros:
Opportunities for huge profits: Low market cap coins can see daily gains of up to 60%, with significant potential for short-term doubling.
Ecological dividends: Technical upgrades or favorable collaborations can trigger sharp price reactions.
Cons:
Extreme volatility: Poor liquidity allows whales to manipulate prices, causing drops of 16% in a single day, with high leverage being prone to targeted liquidation.
Information black box: Project teams often lack transparency, compounded by regulatory risks (e.g., classification as securities), leading to a high probability of going to zero.
High liquidation risks: With volatility over 20%, a 50x leverage position can liquidate with just a 2% adverse movement.
---
Core Strategy Comparison
Liquidity: Mainstream coins > 1 billion USD/day vs. Altcoins < 1 million USD
Volatility: Mainstream coins ±3%-5% intraday vs. Altcoins ±10%-20%+
Leverage limit: Mainstream coins ≤ 20x vs. Altcoins ≤ 5x
Information transparency: Institutional holdings can be tracked vs. relying on community rumors
Risk control iron rules:
1. Mainstream coins: Use USDT-based contracts to avoid price fluctuations, set ±5% take profit and stop loss.
2. Altcoins: Position < 5% of capital, prefer coin-based hedging against losses, strict -3% stop loss to avoid event windows.
> 💎 Ultimate Paradox: Mainstream coins are stable but with thin profits, altcoins are risky but with thick profits. The essence is the trade-off between risk and capital—newbies perish due to altcoin leverage, veterans fail due to mainstream greed.
$SPK $ETH #以太坊十周年 #美联储利率决议
#稳定币热潮