Futures vs Spot
📍 Futures vs Spot, what's the difference?
✅ Spot: Buy coins directly, buy low sell high, if you lose you can 'play dead' ✅ Futures: Play 'leveraged trading' with borrowed coins, can profit from both rising and falling, but the risk of liquidation is extremely high! Example🌰: - Spot: Buy 1 ETH for 1000, sell when it rises to 2000, profit 1000. - Futures (10x leverage): Use 1000 as 10,000, if ETH rises 10% profit 1000 (double), if it falls 10% it goes to zero! ---⚠️ The deadly temptation of futures 1️⃣ Quick money mindset: Doubling in spot requires waiting for a bull market, futures can do it in a day (but can also go to zero in a day). 2️⃣ Long and short double kill: Can make money whether it rises or falls, but the market makers can 'spike' and cause liquidation unexpectedly. 3️⃣ Leverage poison: 100x leverage = 1% fluctuation leads to liquidation, someone once lost 500,000 USDT due to a 1.2% fluctuation! ---🚨 Newbie Pitfall Avoidance Guide 🔹 Practice with a demo account: First, use the exchange's simulation feature to test 20 times! 🔹 Position control: Single trade ≤ 5% of capital, leverage ≤ 5 times (don't touch 100x!). 🔹 Dynamic stop-loss: After a floating profit of 50%, raise the stop-loss to the breakeven line to protect capital.