Brothers, are you confused after just entering the crypto space? What's the difference between spot, leverage, and contracts? Why do some people get rich overnight while others lose everything? Today, as a veteran who has been in the crypto space for 7 years, I will break it down for you—how to survive and even make big money!

1. What's the difference between spot, leverage, and contracts? (90% of beginners get it wrong!)

(1) Spot trading (a must for beginners)

  • Gameplay: Directly buy coins, buy low and sell high to make a profit.

  • Advantages: Low risk, the coins are always yours, no fear of liquidation.

  • Disadvantages: Can only go long, in a bear market you can only stare.

  • Suitable for: Newcomers to the space or long-term holders (like regular investments in BTC/ETH).

(2) Leverage trading (amplifies profits but also amplifies risks)

  • Gameplay: Borrow money from the exchange to leverage (e.g., 5 times), gain 25% on a 5% rise, lose 25% on a 5% drop.

  • Advantages: High capital utilization, earn faster in a bull market.

  • Disadvantages: High liquidation risk, interest costs are not low.

  • Suitable for: Players with some experience who can withstand high volatility.

(3) Contract trading (high risk, high reward)

  • Gameplay: You don't really buy coins, just bet on price rises and falls (long/short), up to 100 times leverage.

  • Advantages: Two-way trading, can make money in a bear market; high leverage, explosive profits.

  • Disadvantages: Extremely high liquidation risk, 99% of beginners lose everything.

  • Suitable for: Professional traders or gamblers who are not afraid of dying.

🔥 One-sentence summary:

  • Spot = Buying a house (long-term holding)

  • Leverage = Loaning to speculate on real estate (earn fast, lose fast)

  • Contract = Betting on real estate price fluctuations (either get rich or go to zero)

    2. When do I use which trading method? (Practical experience sharing)

  • Early bull market (spot + low leverage)

    For example, when BTC just breaks the previous high, I would use spot + 3 times leverage, which avoids liquidation and amplifies profits.

  • Volatile market (short-term contracts)

    When BTC is sideways in a certain range, I use 5-10 times contracts, selling high and buying low to capture segment profits.

  • Extreme market (contract hedging)

    For instance, in the case of major negative news (like the Federal Reserve raising interest rates), I would hold spot + open a short position for hedging to avoid being trapped in a crash.

  • Which method do I use most often?

    Spot + low leverage (within 5 times), because it can amplify profits without risking liquidation overnight. 100 times contracts? That's for gamblers; I've seen too many people lose everything overnight!

3. A must-read for beginners! 3 pitfall guides (bloody lessons)

  • Don't touch high leverage! (10 times or more = suicide)

    Data from 2025 shows that the average survival time for 100 times leverage users is only 37 minutes.

  • Stay away from altcoin contracts!

    Over 60% of the top 10 coin-holding addresses are projects that 99% are just schemes to harvest retail investors, they dump as soon as the price rises.

  • Make sure to set stop-loss!

    Those who hold onto their positions end up getting liquidated, while users who set stop-losses have a 47% higher survival rate.

    4. What should we do now? (Latest strategy for 2025)

  • Spot traders: Regularly invest in BTC and ETH, don't worry about short-term fluctuations, hold for 3 years!

  • Leverage Party: Use 3-5 times in a bull market, avoid in a bear market!

  • Contract Party: Only trade BTC/ETH, leverage ≤ 10 times, stop-loss must be set!

Finally, here's a saying:

The core of making money in crypto is not technology, but mindset. Don’t always think about getting rich overnight; those who survive end up making big profits!

🔥 Did you blow up your first contract? Let's talk about your bloody history in the comments! #交易类型入门 #币安Alpha上新 #新手必看