Many brothers have been asking me, 'Bro, do you only trade Bitcoin and Ethereum?'
From your statement, it is clear that you have not grasped the essence of contracts. Why do I say this? Let me briefly share my personal opinion!
1 I believe many brothers know that trading contracts is about liquidity, and the strongest liquidity in the cryptocurrency market is undoubtedly Bitcoin and Ethereum. Simply put, liquidity means that more people choose to trade that currency. You could also say that without liquidity, there is no trading. For instance, many small coins rise and fall but then become stagnant; that’s how it usually is! Why do they become stagnant? Because no one is trading!
2 Stability, compounding, and energy are key. Everyone knows that stable compounding is the way to go in trading. How can we achieve stable compounding? It requires a good trading system and a stable liquidity trading market, then continuously maintaining stable profits is the simplest way. Most top traders do this. You cannot master every currency; just like in futures, some are very good at cotton, while others excel at rebar. Fishing in a pool with fish, understanding the different depths and seasons, and using different baits to catch the same fish is much simpler and more stable than going to different pools with different baits to catch unknown fish! If you can't catch the fish in your own pond, then don't go far to fish, unless you are not fishing for fish, or you are not trading for profit! Simplifying complex matters and consistently doing simple things makes you the one sweeping the floor! The essence of the great way lies in simplicity; I believe this is key!
3 Many brothers will say, 'Bro, Bitcoin and Ethereum's volatility is too small to make money.' There is a saying that if the amplitude is too small, you can make up for it with multiples. For example, small coins can often rise by 50%, 100%, or even 200% in a day, but without leverage, they might lose half their value or get liquidated in a day. With leverage, one fluctuation could wipe out everything or yield huge profits. But the scariest part is the uncertainty. First, you don't know how much a currency will rise or fall; it is very normal for something to rise by 50% one moment and then fall by 100% the next. For trades with too many unknown factors, I personally classify them as gambling rather than trading. Gambling is purely based on luck. Of course, if you are not seeking stable profits, you can try your luck, but one thing is certain: long-term gambling will definitely lead to losses! However, with Bitcoin and Ethereum, you can usually gauge their liquidity or price fluctuations over a week or a day! For instance, Bitcoin typically fluctuates around 5000 points in a day, while Ethereum around 200 points. This is true most of the time! If we know the general range of price movements, combining it with leverage means you can decide for yourself. You can choose to gamble big or small; whether you double your position or get liquidated in a day, it’s the same. But the more you know over time, the stronger it will be compared to pure gambling with unknowns, which is the fundamental reason why most top traders operate on a single category or single currency for a period of time!
5 Can't you choose other currencies? Of course you can! If you can understand any currency, you can use it! In most cases, when you can't understand, a single currency with strong liquidity and high stability is the best choice for contracts, no exceptions! If you can't make a profit with a single currency combined with your trading strategy, it can only be said that there is a problem with your trading system itself, not with the currency. It's like having fish in the pool but you can't catch any; it just means your skills are lacking, not that the pool has no fish! And if you go fishing in unknown waters where you don't know if there are any fish or what kind of fish are there, not being able to catch anything may not be a technical issue but a problem with the pool!
6 The essence of contracts is to gamble big with a small amount, not to gamble big with a small amount. This is a fundamental principle issue. Too many questions have been asked countless times, and you could have become a trader, but if you choose to be a gambler, then please take a detour and stay there!
The above opinions are personal views! If you have different opinions, please do not leave comments; rebuttals are not accepted! If you don’t know what currency to trade in contracts, then don’t hesitate: just trade Bitcoin!