Many newcomers to the cryptocurrency world are often puzzled at first:

Should I trade spot or play contracts?

Which is easier to make money with? Which is easier to get liquidated?

Today, I will explain it in the simplest terms.

✅ First, the conclusion:

If you want to survive long-term: trade spot

If you want to double your money quickly, but could also lose everything overnight: play contracts

🟢 1. What is 'Spot'?

You spend money to buy coins, and the coins are yours.

For example, if you use 1000 USDT to buy BTC, then you own Bitcoin.

If it goes up, you profit; if it goes down, you lose, but you won't be 'liquidated'; the coins remain in your account.

📌 Suitable for: Newbies, small investors, those who are optimistic about a certain project in the long term.

🔴 2. What is 'Contract'?

You don't need to buy coins; you just bet on whether it will go up or down, with leverage, and can be liquidated at any time.

Contract trading is essentially a directional bet + leverage amplification,

With 10x leverage on BTC, if it rises by 1%, you earn 10%,

but if it drops by 1%, you might get liquidated to zero.

📌 Suitable for: Stable-minded, experienced, short-term players who understand position control.

⚖️ 3. Key Comparison Table

Project | Spot | Contract

Holding Assets | Yes (real coin purchase) | No (betting direction)

Leverage | None | Supports high leverage

Profit and Loss Mechanism | Rise and fall = profit and loss | Trend direction correct = profit

Liquidation Risk | Cannot be liquidated | Highly susceptible to liquidation

Suitable for | Newbies / Long-term | Veterans / Short-term

Common mistakes made by newbies:

Seeing others make quick money with contracts, impulsively entering → Liquidation

No position management, going all in → Series of losses

Emotional control, increasing positions → Losing more and gambling more

My advice:

If you are new to the space, please start with spot trading, and slowly build your understanding of market trends, positions, and candlestick charts.

Don't listen to others saying '10x profit', what others earn is what you lose.