Just do it! In the crypto world, try not to gamble on contracts; spot trading is the way to go!
Is it better to trade contracts or spot in the crypto world? To be honest, contracts are a double-edged sword; if played well, you can get rich, but if played poorly, you can lose everything!
Why should beginners avoid contracts?
1. Spot trading won't lead to liquidation; slow is fast!
No matter how powerful a contract is, if you're wrong about the direction, you'll go to zero instantly. But if the spot price drops, you can still hold on, and eventually, you can wait for the bull market to double your investment!
How many people have you seen go long on BTC at 60K in 2021 and get liquidated? Then in 2024, when BTC hits 90K, they didn't even get a chance to recover!
2. Spot trading accumulates wealth, while contracts harvest emotions!
With spot trading, you can buy and hold for appreciation, ignoring fluctuations, which keeps your mindset more stable.
Contracts have fluctuations that can change several times a day, and beginners simply can't keep up with the market; emotional ups and downs lead to being harvested by exchanges.
3. Spot trading is about the right direction; contracts are about probabilities!
As long as you buy BTC/ETH, it will rise in the long term; the market trend is upward, and if you can hold on, you can make money!
But with contracts? It's not enough to just be right about the direction; you also need to be right about the timing, support and resistance levels, and market sentiment. If you get any one of these wrong, you can explode!
Look at these real cases of losing money!
At the peak of the bull market in 2021, many people chased after BTC at 60K, only to see a crash in 2022, leaving their contract accounts at zero, with no money left to buy spot.
In 2023, when BTC was just starting at 30K, many people went all-in short, thinking a correction was inevitable, but BTC shot straight up to 60K, and they were liquidated while trying to cover their losses, ultimately losing everything!
Making money in the long run is the hard truth!
1️⃣ Buy in batches; don’t go all-in at once!
The biggest advantage of spot trading is its ability to withstand fluctuations, so be smart when buying; accumulate in batches to lower costs.
2️⃣ No matter how much the market fluctuates, hold onto mainstream coins without fuss!
Bitcoin and Ethereum are the way to go; just hold onto them. Don’t constantly think about swapping coins or trading short-term, or you'll end up being harvested.
Just look at those who were trading short-term in 2017 and 2021; how many are still alive today?
3️⃣ Don’t recklessly increase leverage in a bull market, and never cut losses in a bear market!
During a bull market, don’t think about using 10x leverage for contracts; holding good spot is victory!
When a bear market comes, don’t panic; the low point is an opportunity. If you hold onto BTC/ETH and don’t sell, it doesn’t count as a loss!
Trading contracts is gambling; if you win, you get rich, but if you lose, you have nothing left. Only spot trading is about accumulating wealth!
