Many people who just enter the crypto world often ask me a question:
"Why do I always buy high and sell low? Where did I go wrong?"
Later, I understood:
It's not that you don't work hard, but you haven't built a solid foundation.
1. No trading logic established, only relying on feelings to operate.
Many beginners place orders based on "everyone says it will rise" or "the candlestick just broke through," but this is not a complete judgment.
2. Contracts amplify mistakes, leading to faster losses.
If you lose 10% in spot trading, you can still adjust your mindset;
With a 10x leverage contract, a 10% drawdown can lead to liquidation, leaving you no chance to react.
📌 Others earn money in contracts after they can control risk themselves, not by impulsively following trends.
🔍 Therefore, what beginners should do most is to learn these three things:
🧱 1. Understand the rhythm of the market.
Not every market wave is suitable for your participation.
Through spot trading, you can more intuitively feel trend changes, trading rhythm, and position advantages and disadvantages.
📉 2. Accept the truth that "slow is fast."
Spot trading rises slowly, but it allows you to learn to remain calm.
You are not unintelligent; you just need a more controllable environment to grow.
📌 Stage One: Spot Trading Basic Training (1–3 months)
• Learn to use mainstream exchanges like Binance/OKX
• Familiarize yourself with mainstream coins: BTC, ETH, SOL, LINK, etc.
• Understand basic indicators: market capitalization, circulation, trading volume
• Conduct 10 small transactions to observe buy/sell performance
• Learn to set take profit and stop-loss orders, practice trading discipline
• Transfer coins to wallets, learn basic on-chain transfers
Goal: Build your own trading language, no longer just "watching the excitement and following others."
📌 Stage Two: Contract Experimentation (at least 3–6 months later)
Only after you can profit in spot trading or execute strategies steadily, consider trying small contracts:
✅ Practice on a demo account, familiarize yourself with liquidation mechanisms and funding rates
✅ Use no more than 5x leverage, with a single loss not exceeding 2% of the principal
✅ Every trade should come with reasoning, target price, and stop-loss point
✅ Do a good review, do not chase trades or hold positions
💬 Common pitfalls for beginners:
• Contracts are not shortcuts, they are amplifiers. If you have no direction, they will only make you lose faster.
• Spot trading is not slow; it is stable. Making money does not rely on "quick entries," but on system + rhythm.
• True growth starts from that first small spot trade.