For newcomers in the cryptocurrency circle, it is strongly recommended to start learning from spot trading, and consider whether to contact contracts after fully mastering it.
1. Why is spot trading more suitable for newcomers?
1. Risk level
Spot trading: Loss limit = principal is zero (e.g. 1,000 yuan, the maximum loss is 1,000 yuan)
Contract trading: Possible liquidation (the higher the leverage, the greater the risk, a 10% drop in 10x leverage means a 100% loss)
2. Learning curve
Spot trading only requires the following:
✅ Buy and sell operations
✅ Basic market analysis
✅ Wallet transfer
Contract trading requires additional knowledge:
❗️ Leverage multiple selection
❗️ Margin calculation
❗️ Forced liquidation price warning
❗️ Funding rate arbitrage
3. Mentality influence
Spot volatility is relatively mild, suitable for cultivating market perception
Severe fluctuations in contracts can easily lead to emotional trading (a common fatal injury for newcomers)
II. Hidden thresholds for contracts (easy for newcomers to ignore)
1. Differences in exchange mechanisms
Differences in full-position/per-position mode
Differences between U-based and coin-based contracts
Differences between marked price and latest price
2. Hidden costs
Funding rate (charged every 8 hours, long-term holdings may accumulate high costs)
Slippage problem (small price differences trigger liquidation when high leverage)
III. Learning path recommendations (by stage)
Must-learn content
Buy BTC/ETH with an exchange (Binance/OKX recommended)
Learn to view Top 50 tokens on CoinMarketCap
Understand basic indicators such as market capitalization, circulation, and trading volume
Safety strategy
Only use leverage of less than 5x for the first time
No more than 10% of the principal in a single transaction
Stop loss must be set
Establish your own trading discipline (such as stop-profit and stop-loss rules)
Participate in a bull market cycle to observe market sentiment
IV. Key suggestions
1. Simulate first
Binance/OKX both have contract simulation trading functions. It is recommended to simulate at least 1 month before real trading
2. Beware of the "get rich trap"
Those who post contract profits on social media usually do not show more liquidation records
V. FAQs for newcomers
Q: What should I do if I see others making tens of thousands of dollars a day with contracts?
A: Statistics show that 98% of contract novices lose money within 6 months. Survivor bias makes you only see the winners.
Summary: The first principle of survival in the currency circle is to survive, and spot is the best starting point for learning. When you have enough knowledge of the market, contracts will naturally become a tool rather than a gambling tool.