I am 32 this year, started trading coins at 22, by 2023-2024 my capital reached 8 digits, and my current lifestyle involves staying in high-end hotels costing around 2000 yuan, with suitcases and hats possibly bearing crypto symbols. It’s much more comfortable than the older generation doing real businesses or '80s kids in e-commerce. I have hardly ever experienced business disputes, and I have fewer worries.
I patiently summarize my insights; the biggest point in trading coins is having a good mindset, while technique is secondary.
Without reviewing the coins, even having a mountain of gold is in vain. While there is still time, I will share some valuable insights + 9 survival rules. Only after understanding can you trade coins to support your family!
In a bull market, holding spot usually has more advantages than opening contracts, mainly because the overall trend in a bull market is upward, spot trading can better capture the prolonged market uptrend benefits, while the high risk of contract trading may weaken investment returns.
Moreover, even if you think a bull market means upward movement and open a bullish contract, any short-term price pullback can lead to liquidation—especially with high leverage, even a small pullback can force the investor's position to be liquidated, missing out on subsequent market recovery opportunities.
Ultimately, for most beginners or investors with lower risk tolerance, spot trading during a bull market is definitely a more stable choice.
If you insist on playing contracts, at least read this first to potentially live three more years! — At the end of this article is a 'survival operation manual'.
Why do some people make 1 million a day with contracts while others go bankrupt?
1. What exactly is a contract? It’s 'leverage chips' on the betting table!
Plain explanation:
Contracts are 'gambling games that amplify profit and risk with leverage'.
Spot trading: Spend 100 yuan to buy coins worth 100 yuan, a 10% rise earns 10 yuan, a 10% drop results in a 10 yuan loss (similar to buying groceries, payment and delivery happen simultaneously). Contract trading: Spend 100 yuan to open 10x leverage, equivalent to borrowing 900 yuan, buying a total of 1000 yuan worth of coins, a 10% rise earns 100 yuan (10x return), a 10% drop results in a 100 yuan loss (principal goes to zero, and may even incur debt).
Casino comparison:
Spot trading is 'betting 10 yuan on high or low', while contracts are 'betting 10 yuan on high or low, but the casino allows you to say 'I’ll use this 10 yuan as 100 yuan', winning earns 100 yuan, losing means not only losing your 10 yuan, but also owing the casino another 90 yuan.
2. The deadly temptation of contracts: 'Devil's trading' where you earn 10 times in 10 minutes!
Cases of sudden wealth (real but extreme):
In 2025, BTC dropped 20%; a player opened a 20x short position with 5000 U (betting on a drop), closed in 10 minutes, earning 100,000 U (5000×20×20%). A certain MEME coin surged 500%, and a leveraged player with 1000 U earned 500,000 U, achieving 'financial freedom' directly.
Psychological traps for retail investors:
'Earning 10% on spot takes a week, but earning 10% on contracts only takes 10 minutes. Why not play?'
The truth: It's like the 'fast 3' in a casino; the speed of winning is fast, but the speed of losing is even faster — 90% of contract players don't survive 3 months.
3. The slaughterhouse logic of contracts: How do whales harvest retail investors?
Strategy 1: Spike trading (false breakouts that wipe out longs and shorts)
Whales pump the price to 100,000 U, triggering retail investors to chase high, then instantly crash to 80,000 U, liquidating all long positions, and then pump back to 90,000 U, harvesting both longs and shorts.
Example: In 2024, a certain platform's BTC 'spike' dropped 30%, leading to a total liquidation of 2 billion dollars across the network, with retail investors crying that 'the whales revealed their cards'.
Strategy 2: High leverage + Low liquidity (boiling frogs in warm water)
A small exchange launches 100x leverage to attract retail investors with 'high returns', then pumps and dumps on obscure coins (like a certain meme coin), causing retail investors to be unable to close positions due to poor liquidity, leading to direct liquidation.
Strategy 3: Emotional harvesting (pulling the plug during crashes, freezing during surges)
During major market movements, exchanges intentionally go down, preventing retail investors from stopping losses, watching their assets go to zero (during a liquidation wave in 2023, users complained 'the page was loading for 1 hour').
Four, essential reading for retail investors: 3 iron rules for surviving in contracts!
1. Leverage should not exceed 5x: the lower the leverage, the longer you survive!
10x leverage: If the coin price drops 10%, liquidation occurs (for example, with 1000U principal, opening a 10x leverage to buy 10,000 U worth of coins, a 10% drop results in a loss of 1000U, wiping out the principal); 5x leverage: Liquidation occurs after a 20% drop (similarly, liquidation occurs after a 20% drop, leaving you with more room for stop-loss).
Mnemonic: "10x leverage is poison, 5x leverage is alcohol, 2x leverage is a drink" — beginners should start practicing with 2x!
2. Single trade stop-loss should not exceed 3% of the principal: if you make three mistakes, you can still survive!
Example: With a principal of 100,000 U, if each trade's stop-loss does not exceed 3,000 U (3%), after three consecutive mistakes, a loss of 9,000 U (9%) still leaves 91% of the principal to recover; in contrast, a retail investor with a 10% stop-loss per trade, after two mistakes loses 20%, and a third mistake results in immediate liquidation.
3. Only trade mainstream coins + daytime trading: stay away from the midnight scythe!
Mainstream coins (BTC/ETH): High cost of manipulation by whales, low probability of price spikes; Daytime trading (9:00-18:00): Avoid the 3 AM 'liquidation peak period' (whales love to act at midnight).
Five, the ultimate awakening guide for contract players: These 3 types of people are destined to make money!
1. Quantitative robot operators
Automatically track trends with a program, setting '5% profit-taking, 3% stop-loss' to avoid emotional trading (real-tested annual yield of 20%-50%, but requires programming knowledge).
2. Hedgers
Holding 1 million U in spot BTC, opening a 500,000 U short position for hedging, when the coin price drops 10%, the spot loses 100,000, while the short earns 50,000, reducing the loss.
3. Extreme market catchers
Only act during 'black swan events' (like sudden policy changes or exchange failures), using 1% of your funds to bet on a crash/surge, earn, and run (only do this 3-5 times a year).
Six, the final advice for beginners: Contracts are not ATMs; they are 'wealth redistribution devices'!
99% of people should stay away from contracts: If you are an office worker, a stay-at-home mom, or a student, slowly accumulate with spot investments; if you must play, first do these three things:
❶ Practice with a demo account for 3 months and record the psychological changes in each trade;
❷ Use funds that 'won't affect your life' (like 1000 yuan) and only trade with 2x leverage;
❸ Write a 'trading diary' every day after the market closes to analyze the reasons for gains and losses.
Here’s another truth for you:
'Those who make big money in the crypto world, 90% rely on holding spot through bull and bear cycles, and 10% rely on contracts to take risks. If you are not a genius trader, don’t challenge probabilities with your principal — after all, casinos always profit from 'probability money', while retail investors are always betting on 'small probability miracles'.
By 2025, my coin trading will reach 8 digits. My current lifestyle involves staying in high-end hotels costing around 3000 yuan, with suitcases and hats possibly bearing crypto symbols! I have hardly ever experienced business disputes, and I have fewer worries.
I patiently summarize my insights; the biggest point in trading coins is having a good mindset, while technique is secondary.
1. In most cases, Bitcoin is the leader in the rise and fall of the crypto market. Hard quality Ethereum coins sometimes move independently of Bitcoin, while altcoins generally cannot escape its influence.
2. Bitcoin and USDT move in opposite directions; if you find USDT rising, be cautious of Bitcoin dropping; when Bitcoin rises, it’s the right time to buy USDT.
3. Between 0:00 and 1:00 AM, price spikes are likely, so domestic traders can place low buy orders and high sell orders before going to sleep, who knows, they might get executed and make money while lying down.
4. Every morning between 6-8 AM is a good time to decide whether to buy or sell, as well as to judge the day's price movements. If there is a continuous drop from 0:00 to 6:00 AM, this period is still in decline, making it a buying or averaging opportunity; the day will likely end positively. Conversely, if it's a continuous rise, it’s a selling opportunity; the day is likely to end negatively.
5. At 5 PM, it’s an important point of interest in the market; due to time zone differences, American traders are up and working, which may cause price fluctuations. Some major rises or drops have indeed occurred at this time, so pay special attention.
6. There’s a saying in the crypto world about 'Black Friday', where a few times there have been coincidental major drops on Fridays, but there can also be major rises or sideways movements; it’s not particularly accurate, just pay attention to news.
7. If a coin with sufficient trading volume drops, don't worry; patience will lead to recovery, usually within 3-4 days for short-term, a month for long-term. If you have excess USDT, gradually average down to lower the price; recovery will be faster. If you lack funds, just wait; it won’t let you down. Unless you really bought a 'bad coin'.
8. Holding the same coin in spot trading for the long term yields greater returns than frequent trading; it depends on whether you have the patience to hold. I bought Dogecoin at 0.1 and it has increased over 20 times since.
There is a very foolish way of trading coins that promises 'eternal profit', making you 30 million! This method has achieved an 80% win rate! Key indicators you must know when trading coins [price fluctuation patterns]: once mastered, the coin market will be your 'ATM'.
9 Rules for Survival in Short-Term Trading!
1. You must learn to wait; contracts are like passing the drum, after the excitement, there will be an adjustment, and panic will lead to a reversal. Use 20% of the opportunities to earn 80% of the returns; this is the irreversible law of the market.
2. Never over-invest; heavy positions can lead to emotional trading, creating a vicious cycle. Losses are normal; the key is mindset and seeking new opportunities. To profit, focus first on preserving capital.
3. Be cautious when buying. Don't be impulsive due to a straight rise; in a big market, opportunities are abundant. Assess based on indices and sentiment.
4. Be decisive when cutting losses; if it doesn’t meet expectations, act quickly and don't waste time on losses. Seek new opportunities instead.
5. After making a big profit, withdraw promptly. Big profits often mean the market is very enthusiastic, and an adjustment is imminent. Timely withdrawals clear the enthusiasm and add color to life.
6. Respect the market; do not judge the market subjectively. If the funds have not chosen a direction, do not stubbornly hold on. Immersing yourself in the direction recognized by the market is the right path.
7. Do not chase after a peak; the market has peaked, the game of passing the flower is about to end. Who will be willing to take over the next day?
8. Try not to trade in the afternoon; the situation in the morning short term is usually clear, and the time to act has passed. Streamline trading to avoid unnecessary entanglements.
9. Persisting in reflection and summarizing failures is not scary; what’s scary is not gaining anything. Let each failure become the foundation for success to go further.
