#Investment is risky, be cautious#Contracttrading#Bitcoin#Spot#Coincircle knowledge
For newcomers in the cryptocurrency world, it is strongly recommended to start learning from spot trading, and then consider whether to get involved in contracts after fully mastering it.
1. Why is spot trading more suitable for newcomers?
1. Risk level
Spot: Loss limit = principal is zero (e.g., the maximum loss of 1,000 yuan is 1,000 yuan)
Contract: There is a possibility of liquidation and debt (the higher the leverage, the greater the risk. A 10x leverage decline of 10% means a 100% loss)
2. Learning Curve
Spot only needs to master:
✅ Buy and sell operations
✅ Basic market analysis
✅ Wallet transfer
The contract requires additional knowledge:
❗️ Leverage multiple selection
❗️ Margin calculation
❗️ Liquidation price warning
❗️ Funding rate arbitrage
3. Influence of mentality
Spot fluctuations are relatively mild, suitable for cultivating market perception
The sharp fluctuations in the contract can easily lead to emotional trading (a common fatal flaw for newcomers)
2. Hidden barriers to contracts (easy for newcomers to overlook)
1. Differences in exchange mechanisms
Differences between full-margin and individual-margin modes
Differences between U-based and coin-based contracts
Difference between Mark Price and Last Price
2. Hidden costs
Funding rate (charged every 8 hours, long-term holding may accumulate high costs)
Slippage problem (small price difference triggers liquidation when leverage is high)
3. Strategy complexity
Simple spot strategy: fixed investment and batch profit taking
Contracts need to be matched with: hedging, grid trading, swing trading, etc.
3. Learning path suggestions (by stages)
Phase 1: Spot basis (1-3 months)
Required Learning Content
Buy BTC/ETH on an exchange (Binance/OKX recommended)
Learn to view the top 50 coins on CoinMarketCap
Understand basic indicators such as market capitalization, circulation, and trading volume
Practical goals
Complete more than 10 spot transactions
Try to withdraw tokens from the exchange to your wallet
Practical goals
Phase 2: Contract Trial (6 months later)
Prerequisites
Spot trading has been profitable for more than 3 months
Able to accurately explain concepts such as "funding rate" and "forced liquidation price"
Security Policy
For the first time, only use leverage less than 5 times
A single transaction does not exceed 2% of the principal
Stop loss must be set
Establish your own trading discipline (such as stop-profit and stop-loss rules)
Participate in a bull market cycle and observe market sentiment
IV. Key Recommendations
1. Simulation trading first
Binance/OKX both have contract simulation trading functions. It is recommended to simulate for at least 1 month before trading in real time.
2. Beware of the "get rich quick trap"
Those who post contract profits on social media usually do not show more liquidation records
3. Remember two formulas
Spot loss speed: principal × currency price drop
Contract loss speed: principal × leverage × currency price drop
5. FAQs for Newbies
Q: What should I do if I see others making tens of thousands of dollars a day from their contracts and feel itchy?
A: Statistics show that 98% of contract novices lose money within 6 months. Survivor bias makes you only see the winners.
Q: When can I start learning about contracts?
A: When you can answer the following questions:
Why does the BTC halving affect the price?
What is Ethereum's gas fee mechanism?
How to judge whether the TVL of a project is real?

Summary: The first priority of survival in the cryptocurrency world is to survive, and spot trading is the best starting point for learning. When you have enough knowledge of the market, contracts will naturally become a tool rather than a gambling tool.

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