《Cryptocurrency Contracts: A Brutal Game Where 99% Are Destined to Fail》
In the world of cryptocurrency, contract trading is packaged as a 'shortcut to wealth', attracting countless newcomers eager for an overnight turnaround. However, the reality is that the contract market is a zero-sum game, or even a negative-sum game—exchanges, market makers, and quantitative teams harvest retail investors, leaving very few who can escape unscathed.
1. The Essence of Contracts: The 'Sure-win Trap' in Casinos
The core of contract trading is leverage, 5x, 10x, or even 100x, which seems to allow small investments to gain huge returns, but in reality:
High leverage = Accelerated death: A 1% market fluctuation can wipe out your principal with 100x leverage.
Fee erosion: Frequent opening and closing of positions gradually eat away at capital through fees and funding rates.
Liquidation from spikes: Insufficient exchange depth can lead to positions being wiped out with just one spike.
2. Why Do 99% of People Ultimately Get Liquidated?
Loss of control over emotions: Greed during profits, fear during losses, ultimately getting repeatedly harvested by the market.
Overtrading: Frequent operations to catch every fluctuation lead to being overwhelmed by fees and slippage.
Blindly following orders: So-called 'contract experts' often rely on luck, and followers often become the bag holders.
3. The 'Harvesting Game' of Exchanges
Data manipulation: Some small exchanges intentionally cause spikes to liquidate contract traders.
The truth about contract promotion: Exchanges vigorously promote contracts because the money from liquidations ultimately flows into their pockets.
Referral schemes: Those who encourage you to trade contracts often profit from commissions rather than genuinely helping you make money.
4. Survivorship Bias: The 'Wealth Myths' You See Are Only 1%
Social media is filled with stories of turning '100,000 into 10 million', but no one shares screenshots of their liquidations. Those who make money from contracts are either exceptionally gifted traders or have short-term luck, but in the long run, 99% will lose everything.
5. The True Path to Wealth: Stay Away from Contracts, Embrace Spot Trading
The real opportunities in the cryptocurrency space are:
Airdrops: Early participation in quality projects for high returns at low costs.
Spot investment: Researching fundamentals, seizing bull market trends, and holding patiently.
Learning and understanding: Enhancing market comprehension rather than relying on gambling-style trading.
Conclusion: Contracts are a bottomless pit, do not jump in!
