There are two modes of trading: one is spot trading, and the other is contract trading.

Spot trading is like boiling a frog in warm water; it is a relatively stable way to play.

Contract trading, on the other hand, is like licking blood from a knife's edge; it is a very thrilling way to play.

Many newcomers to the scene are confused: should I play spot or contract trading?

Let me break it down for you, so you might understand it better.

① Spot Trading — A more stable way to play.

Spot trading is just like buying things; you pay money and receive goods.

For example, if you spend 3000 yuan to buy a coin, then that coin is yours; regardless of whether it goes up or down, it just lies in your account.

If it goes up, you make a profit from the price difference; if it goes down, the coin is still there, it just becomes worthless.

Advantages: Strong sense of security; it won't go to zero overnight.

Disadvantages: You can only make money when prices go up; when prices go down, you can only watch helplessly.

② Contract Trading — A thrilling way to play.

Contract trading means using small amounts of money to leverage large funds, opening a few times or even hundreds of times leverage; you can earn quickly, but you can also lose quickly.

For example, if you buy 1 BTC with 10 times leverage, it's like trading 10 BTC.

You can also operate in both directions — buy long when the price goes up, and sell short when it goes down; as long as you're right about the direction, you can make money no matter how you go.

Sounds great, right? But if you're wrong about the direction, liquidation can happen faster than you can blink.

So I advise newcomers: start with spot trading and don't rush into contracts.

Once you become familiar with the market and get a feel for the rhythm, it's best to have a reliable mentor before considering contract trading.

To put it simply, spot trading is a slow marathon of making money, while contract trading is a fast-paced sprint that makes your heart race.

Which one to choose depends on how much risk you can tolerate!

If you still don't know what to do or need guidance elsewhere, feel free to reach out to me anytime; I will provide you with a detailed analysis!