Why is it more advisable to buy mainstream assets in spot trading and altcoins in contracts?

First, let's talk about why to buy mainstream coins in spot trading:

1. Mainstream coins are more stable

Mainstream coins like BTC, ETH, and BNB have large market capitalizations, many users, and relatively stable prices, making them less prone to drastic fluctuations. When you buy in spot, you are directly purchasing the 'real goods', and holding them is a long-term asset with relatively low risk, suitable for those who prefer stability.

2. Suitable for players who don't want to monitor the market daily

Spot trading has no leverage; if the price rises, you gain, and if it falls, you lose, but you won't be forced into liquidation. There's no need to worry about being forced out by exchanges, reducing psychological burden, making it suitable for long-term holders, the 'chives' or 'true chives'.

Now, let's discuss why contracts are more suitable for buying altcoins:

1. Altcoins have high volatility and more opportunities for quick profits

Altcoins fluctuate significantly, and contracts can amplify profits using leverage, allowing quick entries and exits to seize market opportunities, yielding fast profits, but the risks are also higher. Contract trading for altcoins is more suitable for short-term operations that require quick decision-making.

2. Contracts can be used for both long and short positions

With altcoins, you can trade contracts regardless of price increases or decreases; you profit when the price goes up and also when it goes down, providing high flexibility. Altcoins often experience significant drops, and you can profit from short positions in contracts, which is not possible with spot trading.

3. Contract trading carries high risk; altcoins are suitable for short-term speculation

Due to the instability of altcoins, leveraging in spot trading carries too much risk, as a price drop can result in severe losses. Contracts allow for position control and closing at any time, offering more flexibility, suitable for those willing to take risks.

Mainstream coin spot trading is as steady as an old dog, while altcoin contracts are exciting to trade; after all, 'stability is the father, excitement is the younger brother.'