📍 Contract vs Spot, what's the difference?
✅ Spot: buy coins directly, buy low and sell high, if you lose you can 'play dead'
✅ Contract: leverage to 'borrow coins for trading', you can profit from both rises and falls, but the risk of liquidation is extremely high! For example 🌰: - Spot: buy 1 ETH for 1000, sell at 2000, profit 1000. - Contract (10x leverage): use 1000 as 10,000, if ETH rises by 10% you earn 1000 (double), if it falls by 10% it goes to zero! ---⚠️ The deadly temptation of contracts 1️⃣ Quick money mentality: Spot doubles require a bull market, contracts can do it in a day (but may also go to zero in a day). 2️⃣ Both long and short kills: you can profit from both rises and falls, but the market makers' 'spike' can lead to liquidation unexpectedly. 3️⃣ Leverage poison: 100x leverage = liquidation from a 1% fluctuation, someone on a certain exchange lost 500,000 USDT due to a 1.2% fluctuation! ---🚨 Newbie pitfall guide 🔹 Practice with a demo account: use the exchange's demo feature to test 20 times! 🔹 Position control: single trade ≤5% of capital, leverage ≤5 times (don't touch 100x!). 🔹 Dynamic stop loss: after a 50% floating profit, raise the stop loss to the cost line to protect your capital. ---💡 Truth: Contracts are 'financial opium', 99% of people lose due to greed + holding positions!
