🔥【Must Read for Crypto Beginners】Spot vs. Futures
🔥【Must Read for Crypto Beginners】How to Choose Between Spot and Futures? Understand the Difference in 3 Minutes! 💡
Brothers who are confused by "spot" and "futures" when just entering the market, look here!
Today, I will explain the differences in the simplest way possible.
After reading, you won't be afraid of getting liquidated anymore～
✨【What is Spot?】
👉 Simply put, it's "cash on delivery"
For example, buying 0.1 ETH for 1000 yuan
If it rises to 1500 yuan and you sell it, you earn 500 yuan (transaction fees are additional)
✅ Advantages:
▪️ Risks are controllable (at most you lose your principal)
▪️ Suitable for long-term holding
▪️ Simple to operate
❌ Disadvantages:
▪️ Slow profits in a bull market
▪️ Requires a larger principal
✨【What is Futures?】
👉 It's like a leverage game of "betting on size"
• 5x leverage: Use 1000 yuan as 5000 yuan
• Going long = betting on price increase, going short = betting on price decrease
✅ Advantages:
▪️ Small funds can also participate
▪️ Can make money in both bull and bear markets
❌ Disadvantages (blood and tears warning❗):
▪️ Risk of liquidation (principal goes to zero)
▪️ High transaction fees
▪️ Requires constant monitoring
⚠️【Beginner's Pitfall Guide】
1️⃣ It is recommended to start with a simulation
2️⃣ Never go all in when trading futures!
3️⃣ Set profit-taking and stop-loss orders (I've suffered losses before 😭)
4️⃣ Stay away from "free guidance" (99% are scams)
💡【My Suggestions】
▫️ Capital < 10,000: Focus on regular investments in spot
▫️ 10,000 - 50,000: Primarily spot + 10% position for small futures trading
▫️ Beginners should definitely avoid leverage above 50x!
Futures are really not something an average person can play with 😅
Brothers, it's better to have a stable happiness～
