Let me describe the life of a contract trader in the crypto world:
But if you're doing contracts, you basically sleep 2 hours a day, with the alarm ringing every 15 minutes.
Watching the K-line fluctuations, feeling anxious, seeing the spikes, heart racing with fear. Terrified of being liquidated.
The deposit is only 3000 yuan, which is the last capital for delivering food on an electric bike.
No girlfriend, no time to spend with family, no sex life, not interested in anything else.
Maybe just smoking and chewing betel nut, with red bloodshot eyes.
One late night, I got liquidated, and the next day I put on my kangaroo outfit to deliver food.
But I'm so tired, I haven't eaten well for a long time and I'm already malnourished.
But in the cold wind, you can only endure under the scorching sun.
You risk dark circles under your eyes, delivered the wrong takeout once, and received a bad review from a customer.
You were deducted 50 yuan, and you need to deliver 10 more orders to earn it back.
You have no way out, but at this moment, the bull market in the cryptocurrency world has returned.
You no longer have the capital to enter the market, your credit card is overdue, and you haven't repaid your friend's money.
Your parents' money has been squandered by you, and you can't feel a trace of warmth in this cold city.
People in the cryptocurrency world may see their value increase 50 or 100 times overnight, or they may suddenly go to zero and have nothing.
Playing contracts in the cryptocurrency world is like playing with your heartbeat, thrilling and more exciting than riding a roller coaster.
Have you ever experienced continuous losses and frequent liquidations?
Then you feel frustrated inside and regret your decision?
Are you eager to make up for your losses, but end up sinking deeper?
You repeatedly imagine the scenes after success, but reality keeps slapping you in the face?
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 characteristic of contract trading is a 'double-edged sword' that beginners find difficult to handle. Contract trading usually allows investors to use leverage, meaning they can magnify their trading scale with a small amount of capital. For example, 10x leverage means that a 10% price fluctuation can expose the investor's principal to the risk of total loss. Beginners have a weak capacity for market fluctuations and lack intuitive understanding of leverage risks, making them prone to amplified losses due to short-term price fluctuations.
The forced liquidation mechanism combined with the 'spike' risk further exacerbates the dangers of contract trading. As mentioned earlier, a 'spike' can cause prices to fluctuate sharply in a short period, and in contract trading, such fluctuations can easily trigger forced liquidation. Beginners often lack sufficient foresight for sudden market situations and lack experience in dealing with 'spikes', and it is likely that they will miss recovery opportunities due to being forcibly liquidated after a rapid price correction, resulting in irreversible losses.
In addition, the complexity of contract trading rules far exceeds the understanding of beginners. Besides leverage and forced liquidation, it also involves margin calculation, expiry delivery, perpetual contract fees, and other professional content. If beginners do not fully grasp the rules and rashly enter the market, they may incur losses due to operational errors (such as insufficient margin, choosing the wrong delivery time); such losses caused by “non-market factors” are particularly regrettable for beginners.
Spot trading is an ideal choice for beginners.
The risk boundaries of spot trading are clear and more suitable for beginners to establish risk awareness. In spot trading, investors buy the cryptocurrency itself, and the maximum loss is the invested principal, which will not lead to excessive losses or liquidation risks due to leverage. This 'controllable loss' characteristic allows beginners to gradually accumulate experience in the market without constantly worrying about extreme situations like 'overnight liquidation'.
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 difference, without having to consider complex parameters like leverage ratios and margin maintenance. Beginners can concentrate on studying market supply and demand, news impact, technical indicators, and other core content, gradually understanding the underlying logic of price fluctuations, laying a foundation for more complex trading later.
From the perspective of cultivating a trading mindset, spot trading can better help beginners establish rational habits. The high volatility of contracts easily triggers emotional trading; beginners often increase their positions due to impulsive short-term profits or panic sell due to losses. Conversely, spot trading has a relatively smooth rhythm, and price fluctuations have a smaller psychological impact, which helps beginners cultivate a 'long-termism' mindset and avoid falling into a vicious cycle of chasing highs and selling lows.
For newcomers to the cryptocurrency world, the core of investment is to accumulate experience and build awareness. Spot trading provides a low-risk practice arena, allowing beginners to learn the rules and sharpen their mindset in a real market; whereas the high complexity and risks of contract trading can lead to significant losses for beginners at the entry stage, losing confidence in the market. Therefore, starting with spot trading is a more stable and sustainable choice.
Old Ma only does spot trading; the team still has positions available, hurry up #BNBChainMeme热潮
