Let's put it this way: playing spot trading in the cryptocurrency market, without talking about how much you can earn, at least you won't lose money. It's almost impossible to lose a lot of money, but of course, this varies by person. For example, a novice who just entered the market will find it difficult to achieve this. I believe that seasoned traders who have experienced two rounds of bull and bear markets can basically achieve steady profits in spot trading.

As long as you have a solid understanding of the cryptocurrency market, it is almost impossible to lose money in the spot market; those who understand will naturally see if what I'm saying is correct. Recently, I have also been thinking about this question: why are there far more people making money through spot trading in the cryptocurrency market than through futures? I have summarized the following reasons:

1. The cognitive level of investors: Spot trading usually doesn't involve leverage and the capital accumulation speed is slow, so those who generally hold spot are often those with large capital. This group of people may have already achieved some form of 'enlightenment' in other industries outside the market, so they are not in a hurry to seek quick success; on the contrary, contract traders usually have less than $100,000, and these individuals can go up or down. When they go up, they soar, and when they go down, they start from zero again. Thus, most people cannot resist the temptation of making a sudden fortune.

2. Periodicity: Spot trading is generally long-term, with a higher margin for error; contracts are more short-term, with a lower margin for error. The high transaction fees and funding rates of contracts force you to make judgments within a relatively short time frame. We know that market movements, especially short-term ones, are largely random, and once you make a wrong judgment, you face real monetary losses; while in spot trading, it's just unrealized losses.

3. Psychological pressure: Those who have experienced it know that trading contracts means you can't expect to sleep well. The first thing you do when you wake up in the middle of the night is check your phone to see if you've been liquidated. You dream about liquidation, and before sleeping, you keep staring at a market that doesn't fluctuate at all until you can't take it anymore. Then you quietly add a bit of margin to dare to sleep again. Spot trading, on the other hand, is completely the opposite. I can sleep anytime I want without worrying about liquidation; I have plenty of time to do what I want.

The above are some points I summarized as to why it's easier to make money in spot trading. Complexity doesn't mean correctness. Therefore, if we want to achieve steady profits in spot trading, we must meet the following prerequisites: 1. Don't invest if you don't understand: I believe this carries the most weight among all reasons. I see many people complaining that Ethereum isn't rising, indicating that many people are heavily invested in Ethereum. But I can guarantee that at least 80% of these people have not deeply researched Ethereum at all; they just think it's good because someone else said it was. If you truly understand what you're buying, you certainly wouldn't lash out at it for not rising. Many people who lose money invest all their money impulsively into something they haven't thoroughly researched, and once the market turns against them, they fall into endless doubt and panic, ultimately leading to their own downfall.

2. Timing of entry: Just because you've researched and found something good doesn't mean you should rush in impulsively. Even if something is skyrocketing, you shouldn't let emotions drive you to chase the high. You must wait for a discount before buying. Just like Nvidia now, we have to admit that it is a very good company. However, a good company does not necessarily equate to profit. If you can't find the opportunity, look for the next one. In investing, you must not have thoughts like 'I must do this or that'; appropriate waiting is essential. An excellent hunter will not easily fire without a target.

In summary: The core of steady profits in spot trading is: 1. Don't invest if you don't understand; don't invest without in-depth research. 2. Find a suitable entry point. This point doesn't need to be absolutely low; having a relatively low position is sufficient. What does relatively low mean? It means that when everyone is throwing it away like a hot potato, we should pick it up, rather than chasing it when everyone is scrambling for it, which can easily lead to injury. That's all I have to say. I hope you can continue to prosper.

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