Many people ask me, what is the difference between spot trading and contracts in the cryptocurrency market? In one sentence: Spot trading is slow to heat up, while contracts are like a quick knife.
Spot trading is like slow cooking, rising and falling bit by bit, with a relatively smooth rhythm. Contracts, on the other hand, are like being on fast forward; once the direction is right, profits double; if the direction is wrong, the account is wiped out in an instant.
Contracts are not a monster, but they amplify the greed and fear within human nature. The most common mistake for beginners is to start with high leverage, thinking of getting rich quickly, only to find that a market reversal leaves them unable to even protect their principal.
Those who truly engage in contracts know in their hearts:
First, higher leverage is not always better. Low leverage combined with patience is more sustainable than high leverage in a head-on confrontation.
Second, stop-loss must be set. If the direction is wrong, accepting the loss and leaving is much more dignified than stubbornly holding on.
Third, position size is always the priority. Use small positions to test, and increase the position with profits; never bet your entire fortune.
I have seen someone use 1000U with 50x leverage and get liquidated in minutes; I have also seen someone steadily use 3-5x leverage, riding the trend, and multiply their investment several times in a few days. The difference lies not in the market, but in the method.
Contracts are about speed, but what allows you to survive in the long run is stability. Don't think about getting rich overnight; treat it as an amplifier, using discipline to amplify profits rather than losses.
In the contract market, winners rely not on courage but on calmness and rules. Position size is life, stop-loss is a shield, and patience is the greatest leverage.
What you lack is not effort; this market is not short of opportunities. What you truly lack is someone who can help you achieve stable profits in this market.
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