Brothers and sisters, don't be impulsive when you just enter the crypto world! Contracts are not ATMs; they are meat grinders.
I've seen too many newbies register an account and go straight to high-leverage contracts, only to have their account go to zero and their beliefs collapse in less than a week.
Carefully reading this article can help you save on tuition and avoid detours!
One, why is spot trading more suitable for beginners?
1. The risk gap is vast:
Spot: you can lose your principal at most; for example, if you invest 1000U, the worst case is zero;
Contracts: not only can you be liquidated, but you can also 'owe money'; the higher the leverage, the faster you can die! For instance, with 10x leverage, if the price drops by 10%, you evaporate directly.
2. Different difficulty levels:
Spot:
Just know how to buy and sell.
Understand the market charts.
Learn to withdraw coins and transfer.
For contracts, you also need to know these:
How to choose leverage?
How to calculate margin?
Where is the liquidation line?
What is funding rate arbitrage?
Newbies entering contracts often start clicking randomly without understanding the interface.
3. Mindset can explode directly:
Spot trading fluctuates relatively gently.
Contracts can quickly turn into a 'roller coaster': temporary gains are exhilarating, but a pullback can drive you crazy, leading to loss of control.
Two, contracts also have these 'hidden landmines' that beginners often step on!
1. Trading mechanisms have pitfalls:
Can you distinguish between full position and isolated margin?
Mark price, liquidation price, latest price—if you don't understand, you'll get 'liquidated' directly.
2. Potential costs are very hidden:
Funding rate: once every 8 hours, long-term holding can drain you with just fees.
Slippage risk: if you place orders too urgently, a big spread can lead to liquidation.
3. Strategies are too complex:
Just do dollar-cost averaging and take profits in batches for spot trading.
Contracts need to be paired with:
Hedging?
Grid?
Swing trading?
Manual rebalancing?
This is not a beginner area, it's purgatory!
Three, suggestions for the learning path for beginners (practical route)
✅ Stage 1: Solidify the basics of spot trading (first 1-3 months)
Essential content:
Learn to buy BTC, ETH on Binance/OKX
Understand concepts like 'market cap', 'circulating supply', and 'trading volume'.
Understand concepts like 'market cap', 'circulating supply', and 'trading volume'.
Practical goal:
Complete more than 10 spot trades
Will transfer coins to the wallet and make transactions
✅ Stage 2: Contract trial (recommended after 6 months)
Must meet:
Stable profit from spot trading for over 3 months
Can explain what funding rate, liquidation line, and position margin are.
Safety operation suggestions:
Initial leverage ≤5x
Single trade funds ≤2% of total capital
Must set stop-loss!
Develop discipline, for example: don't add to a losing position, don't chase after rising prices.
Four, important reminders
🧪 Start with the simulation account!
Both Binance and OKX have contract simulation accounts; it is recommended to practice for 1 month without paying 'tuition' to hone your skills!
🚨 Contracts are not a tool for getting rich quick!
Don't be fooled by screenshots from platform X; what you see as 'earning 100,000 a day' might actually be ten consecutive losses before breaking even.
Five, common soul-searching questions for beginners:
Q: Are contracts really that dangerous?
Answer: Yes, 98% of new contract traders lose money within six months, or even quit.
Q: When can I learn contracts?
Answer: Only after answering these questions can we proceed:
Why is the BTC halving important?
What is the ETH gas fee mechanism?
What is TVL? How to see the real locked amount of a project?
📌 Conclusion:
The first principle of the crypto world—stay alive.
Spot trading is the best starting point.
Only when you have a clear understanding of price logic and market rhythm, can contracts be your 'amplifier'.
Don't use it as a weapon; don't go all in right away.
Use spot trading well, and in the future bull market, you'll naturally dare to trade contracts and survive to reap the rewards!
