For newcomers in the crypto space, it is strongly recommended to start learning with spot trading, and only consider engaging with contracts after fully mastering it.
1. Why is spot trading more suitable for newcomers?
1. Risk level
Spot: Maximum loss = principal goes to zero (e.g., with 1000 yuan, the maximum loss is 1000 yuan)
Contract: Possible liquidation and debt (the higher the leverage, the greater the risk; with 10x leverage, a 10% drop results in a 100% loss)
2. Learning curve
Spot requires mastery of:
✅ Buying and selling operations
✅ Basic market analysis
✅ Wallet transfers
Contracts require additional mastery of:
❗️ Leverage selection
❗️ Margin calculation
❗️ Liquidation price alerts
❗️ Funding rate arbitrage
3. Psychological impact
Spot trading has relatively mild fluctuations, suitable for developing market perception.
Contract volatility can easily lead to emotional trading (a common fatal flaw for newcomers).
2. Hidden thresholds of contracts (often overlooked by newcomers)
1. Differences in exchange mechanisms
Full position / isolated position mode differences
Differences between U-based and coin-based contracts
Differences between marked price and latest price
2. Hidden costs
Funding rates (charged every 8 hours; long-term holding can accumulate high costs)
Slippage issues (small price differences can trigger liquidation when using high leverage)
3. Complexity of strategies
Simple spot trading strategies: dollar-cost averaging, partial profit-taking
Contracts require combinations such as hedging, grid trading, swing trading, etc.
3. Recommended learning path (phased)
Phase 1: Basics of spot trading (1-3 months)
Essential content to learn
Buy BTC/ETH on exchanges (recommended: Binance/OKX)
Learn to check the top 50 tokens on CoinMarketCap
Understand basic indicators such as market cap, circulating supply, trading volume, etc.
Practical goals
Complete more than 10 spot trades
Try transferring tokens from the exchange to a wallet
Practical goals
Phase 2: Trying contracts (after 6 months)
Prerequisites
Consistent profits from spot trading for more than 3 months
Ability to accurately explain concepts such as 'funding rate' and 'liquidation price'
Safety strategies
Initially use leverage of 5x or lower
Single trade should not exceed 2% of principal
Must set stop-loss
Establish your own trading discipline (e.g., rules for profit-taking and stop-loss)
Participate in a bull market cycle to observe market sentiment
4. Key recommendations
1. Start with a demo account
Both Binance and OKX have contract simulation trading features; it is recommended to simulate for at least 1 month before going live.
2. Beware of the 'get rich quick trap'
Those who showcase contract profits on social media usually do not show more liquidation records.
3. Remember two formulas
Spot loss rate: principal × price drop percentage
Contract loss rate: principal × leverage multiplier × price drop percentage
5. Common questions from newcomers
Q: What should I do if I see others making tens of thousands from contracts in a day and feel tempted?
A: Statistics show that 98% of contract newcomers lose money within 6 months; survivor bias only shows you the winners.
Q: When can I start learning about contracts?
A: When you can answer the following questions:
Why does BTC halving affect the price?
What is Ethereum's Gas fee mechanism?
How to determine if a project's TVL is real?
Summary: The first principle of survival in the crypto space is to stay alive; spot trading is the best starting point for learning. When you have enough understanding of the market, contracts will naturally become a tool rather than a gamble.
$BTC
I am Fa Gen, Ding Ding Hao: zhangran72111 Welcome all experts to harvest together.
