In the ever-changing cryptocurrency market, countless investors step into this seemingly opportunity-filled field with dreams of wealth. However, the cruelty of the market leaves many empty-handed. One important reason is that they fall into a cognitive trap when choosing between contracts and spot trading. Those who stubbornly believe that contracts and spot trading are mutually exclusive are often newcomers to the crypto world, while true seasoned players have already begun to employ a combination investment strategy, seeking a balance between risk and return.
First, let's look at contract trading. Its leverage mechanism is like a double-edged sword. It can magnify returns exponentially, and when the market is favorable, investors may achieve returns far exceeding their principal, which is undoubtedly very tempting. However, behind these high returns lies huge risks. For example, with 10x leverage, a mere 1% reverse price fluctuation can instantly wipe out the account's funds, rendering all efforts futile. Moreover, the cryptocurrency market trades 24 hours a day without interruption, and price fluctuations are extremely fierce, with frequent occurrences of both long and short positions being wiped out. Many investors lose their direction in chasing highs and cutting losses, ultimately ending up with nothing. Contract trading seems like a shortcut to wealth freedom, but in reality, it is dancing on the edge of a cliff; a slight misstep can lead to a plummet into an abyss.
Now, let's talk about spot trading. Although there is no risk of liquidation, the risk of having the investment go to zero is equally alarming. In the crypto world, there are numerous altcoins, many of which often lack actual value support, and their price fluctuations follow no pattern. Once one steps into a 'minefield', a 90% crash is not surprising. Investors eagerly await value investment, but the reality is that funds are poured into a black hole filled with unknowns, leaving them at the mercy of fate. Compared to the instant liquidation of contracts, the gradual shrinkage of spot assets also brings significant psychological pressure to investors.
So, how do truly knowledgeable investors operate? They allocate 50% of their funds to mainstream spot currencies like BTC and ETH. These currencies act as the 'anchor' of the cryptocurrency market, having withstood numerous market tests, demonstrating strong risk resistance and value stability, ensuring that the asset base does not experience significant fluctuations. Next, they invest 30% of their funds in potential small-cap coins. However, during the operation, they strictly follow the principle of quick entry and exit, setting a 7-day holding period and taking advantage of short-term market fluctuations to earn price differences. The remaining 20% of the funds are used for low-leverage contract trading, and entry will only occur in situations with extremely high market certainty to reduce risk.
Moreover, investment strategies must be flexibly adjusted in different market environments. In a bull market, the overall market shows an upward trend, and holding spot assets often leads to considerable returns; contract trading at this time serves merely as a means to gain extra profits. In a bear market, as the market continues to decline, shorting through contracts becomes an important way to profit, while timely converting spot assets into stablecoins like U is essential to avoid further asset shrinkage. Another key detail that cannot be overlooked is the early morning hours when market trading is relatively thin, and liquidity decreases, making it prone to malicious price manipulation. Many greedy investors operate during this time, ultimately becoming victims.
In the crypto world, position control is the key factor determining investment success or failure. If funds are not allocated reasonably and one blindly follows the trend, one can only become a 'cash machine' for the market. Only by mastering scientific investment strategies and flexibly adjusting portfolios based on market conditions can one emerge victorious in this field full of opportunities and challenges, achieving stable asset growth.
