Let me describe the life of contract traders in the cryptocurrency space:

But if you are trading contracts, you basically sleep for 2 hours a day, with the alarm going off every 15 minutes.

Watching the K-line fluctuations, feeling anxious, and being terrified of price spikes. Afraid of being liquidated.

With only 3000 yuan left, that is the last capital for delivering food on an electric bike.

No girlfriend, no time to spend with family, no sex life, and no interest in anything else.

Maybe just smoking and chewing betel nut, with bloodshot eyes.

One night, after being liquidated, I put on my kangaroo suit and went out to deliver food the next day.

But I’m so tired; I haven’t eaten well for a long time and am already malnourished.

But in the cold wind and under the scorching sun, you can only endure.

With dark circles under your eyes, you mistakenly delivered an order and received a bad review from the customer.

You were fined 50 yuan, and you need to deliver 10 more orders to earn it back.

You have no choice, but at this moment, the cryptocurrency bull market has returned.

You no longer have the capital to enter the market; your credit card is overdue, and you still owe money to friends.

The money from your parents has already been squandered, and you feel no warmth in this cold city.

People in the cryptocurrency space can see their value increase 50 or 100 times overnight, or they may instantly lose everything.

Playing contracts in the cryptocurrency space is like a thrill ride, exhilarating and more intense than a roller coaster.

Have you ever experienced continuous losses and frequent liquidations?

Then you feel frustrated and regret your decisions?

Are you eager to recover your losses, only to find yourself sinking deeper?

Do you find yourself repeatedly fantasizing about success, only to be slapped back by reality?

For beginners, avoiding contract trading and starting with spot trading is a more prudent choice, backed by multiple reasonable logics.

Contract trading hides multiple risks for beginners.

The high leverage feature of contract trading is a 'double-edged sword' that beginners find difficult to manage. Contract trading usually allows investors to use leverage, meaning they can control a larger trading scale with a small capital. For example, 10 times leverage means that a 10% price fluctuation could result in the total loss of the investor's capital. Beginners have a weaker ability to withstand market fluctuations and lack intuitive understanding of leverage risks, making them prone to amplified losses due to short-term price volatility.

The forced liquidation mechanism combined with the risk of 'price spikes' further exacerbates the dangers of contract trading. As mentioned earlier, 'price spikes' can lead to severe price fluctuations in a short period, and in contract trading, such fluctuations can easily trigger forced liquidation. Beginners often lack adequate anticipation of sudden market situations and lack experience in coping with 'price spikes,' making them likely to miss recovery opportunities after a rapid price pullback due to having already been liquidated, resulting in irreversible losses.

In addition, the complexity of contract trading rules far exceeds the understanding of beginners. In addition to leverage and forced liquidation, it also involves professional content such as margin calculation, expiration delivery, and perpetual contract fees. If beginners rush into the market without fully understanding the rules, they may incur losses due to operational errors (such as insufficient margin or choosing the wrong delivery time), which is particularly regrettable for beginners as these losses result from 'non-market factors'.

Spot trading is the ideal choice for beginners.

The risk boundaries of spot trading are clear, making it more suitable for beginners to establish risk awareness. In spot trading, investors buy the cryptocurrency itself, and the maximum loss is the capital invested; there will be no excessive losses or liquidation risks due to leverage. This characteristic of 'controllable losses' allows beginners to gradually accumulate experience in the market without constantly worrying about the extreme situations of 'being liquidated overnight.'

Spot trading is simple to operate, making it easier for beginners to focus on learning market rules. The logic of spot trading is straightforward: buy low and sell high to earn the price difference, without having to consider complex parameters like leverage ratios and margin maintenance. Beginners can focus their energy on researching core aspects such as market supply and demand, news impact, and technical indicators, gradually understanding the underlying logic of price fluctuations, laying a foundation for more complex trading later on.

From the perspective of cultivating trading mentality, spot trading is more helpful for beginners to establish rational habits. The high volatility of contracts can easily trigger emotional trading. Beginners often impulsively increase their positions due to short-term profits or panic sell due to losses. In contrast, spot trading has a relatively smooth rhythm, and the impact of price fluctuations on psychology is smaller, making it easier for beginners to cultivate a 'long-termism' mindset and avoid falling into a vicious cycle of chasing highs and cutting losses.

For beginners in the cryptocurrency space, the core of investing is to accumulate experience and establish understanding. Spot trading provides a low-risk practice arena, allowing beginners to learn the rules and refine their mindset in a real market; conversely, the high complexity and risk of contract trading may lead to significant losses for beginners at the entry stage, undermining their confidence in the market. Therefore, starting with spot trading is a more stable and sustainable choice.

Old Bo only does real trading; the team still has positions to enter quickly.