Anyone who comes to the cryptocurrency circle knows that this is a high-risk investment field. The risks of spot trading are very high, and the risks of contracts are even greater.
Many might say they don’t use leverage, or they’re not greedy and just take a small profit to earn some pocket money. This is a good thought, but it can only be realized in one situation: when you have good luck, and when you buy an uptrend, it goes up; when you buy a downtrend, it goes down. But have you considered that if you don’t understand the technology, and can’t read the rebound and correction points, you won’t know how much is a small profit? If you haven't eaten enough of the big profits in the trending market, what happens when your luck runs out? What about when you buy against the trend? Is it cutting losses? At what point should you cut losses to minimize the damage? Or should you hold on a bit longer? Maybe the stop-loss points are just bait for the market? How do you judge? And when should you enter the market? Without a trading system, without triggering trading signals, and without data support, how is entering based on feelings any different from gambling? How high do you think your chances of winning are?
You may have heard a story where someone had good luck and made money for 29 consecutive days, but on the 30th day, they had bad luck and lost everything.
There are no perpetual winners in the market; everyone experiences losses. Why do some people have a low win rate, and even if they win one and lose one, or have only a 50% win rate, they can still remain profitable? Why do some people have a high win rate, winning 29 out of 30 days with a 99% win rate, yet still end up losing everything?
Contracts can indeed be very profitable; they generate income faster than spot trading. Some people gamble small to make big profits, relying on contracts to become wealthy and leap through social classes, just like the legendary 19-year-old in the cryptocurrency world, Liang Xi. Imagine at 19, while others are still worrying about life, he actually climbed to the status of a millionaire through contracts, earning tens of millions from just 1,000. However, his outcome was still a total loss, and how many Liang Xis are there in the entire cryptocurrency circle?
Contracts can indeed make money, but only for a very small number of people; the majority will definitely incur losses. Therefore, you must not rely on feelings, you cannot treat it as gambling, you must establish your own trading system, adjust your mindset well, always maintain a learning attitude, strictly adhere to trading discipline, and emphasize that trading systems never go out of style. These are elements that new traders lack, so it is not advisable for beginners to engage in contracts. Before a bull market, pick a few mainstream coins with high market value at low positions, buy a few thousand USD, then uninstall the app and download it again in two years. I believe you will be pleasantly surprised.