To be honest, if you understand how to play contracts, the benefits can be much greater than just holding onto spot trading.
To put it directly, in spot trading, you can only make money when prices go up. When prices drop, you can either hold on or cut losses, watching your account shrink without any options. But with contracts, it’s different; you can go long when prices rise and short when they fall. No matter which way the market goes, as long as you get the direction right, there’s always a chance to profit. Recently, when Bitcoin dropped from 50,000 to 30,000, how many spot traders were left with long faces? But those who shorted in contracts were probably smiling while counting their money.
Then there's the money aspect. With spot trading, you have to put up the full amount of capital to buy whatever you want. If you want to buy some mainstream coins, you need at least tens of thousands to play around. With contracts, you can use leverage; for example, with 10x leverage, if you have 10,000, you can use it as if you have 100,000, which is like using a small amount of money to control a large position. If you get the direction right, the profits can multiply several times, and this efficiency is much faster than waiting for spot trading to rise slowly. Of course, leverage needs to be used cautiously, but as long as you manage your position well, this is a great tool for accelerating profits.
Another very convenient feature is that stop-loss and take-profit can be set clearly. In spot trading, if you want to stop-loss, the market suddenly drops, and by the time you manually execute your actions, you've already lost more. With contracts, you can set your stop-loss and take-profit when opening a position, and it will automatically close when it reaches the target, so even if you're sleeping or eating, you don’t have to worry about missing the best opportunity. What you should earn won’t run away, and what you should lose can be stopped in time.
Isn't the most annoying thing about missing out? Spot traders are always afraid of missing a big market move. For example, if you know a certain coin is going to rise but don’t have cash on hand, by the time you gather enough money, it has already skyrocketed, and all you can do is slap your thighs in frustration. Contracts don’t have this issue; as long as you think an opportunity has arrived, even if your capital isn’t much, you can leverage it and get in right away, keeping up with even the fastest market movements.
Some might say that contracts come with high risks, and that’s true, but risks can be controlled. Don’t use too high leverage, don’t open positions recklessly, and strictly manage your stop-loss. This is actually much safer than those who blindly chase highs and make heavy bets in spot trading. Ultimately, contracts are a more flexible tool that can seize opportunities better; if played well, the path to making money is much wider than with spot trading.
