Come! Key points for newcomers just entering the crypto world!
If you don't understand these jargon, you have no fate with a Maybach!
First, let's talk about spot trading, which means buying coins directly with real money,
for example, using USDT or fiat currency to buy Bitcoin on the spot,
immediate account after purchase, simple and straightforward,
the worst you can lose is your principal, but don't think it's safe,
if the coin price halves, you can still suffer heavy losses. Contract trading is essentially a gambling game,
using 5x, 10x, or even 100x leverage to bet on price movements,
you can earn quickly but die even faster. For instance, if you use 20x leverage to go long,
if Bitcoin drops by just 5%, you will be liquidated and lose everything. Newbies are advised to stay away from this.
Key distinction between USDT-based and coin-based: $ETH
USDT-based uses stablecoins to settle profits and losses, whether you earn or lose, it's all counted in USDT,
suitable for shorting in bear markets because stablecoins do not depreciate.
Coin-based uses coins for settlement; in a bull market, if the coin price rises, you also earn coins,
which is like double happiness. For example, if you earn 1 Bitcoin while the coin price doubles,
you actually earn twofold, but in a bear market, it's hell. If the coin price drops, you lose coins,
both your principal and profits evaporate together. The worst liquidation warning comes from using leverage in coin-based,
for example, if you go long with 10x leverage using Bitcoin, and the coin price drops by 10%,
your contract margin gets wiped out while Bitcoin itself also depreciates by 10%,
which means your principal goes to zero. During the LUNA crash in 2022, many people were taken out this way.
Finally, remember the survival rule: Newbies should start with USDT-based trading using small funds to test the waters,
avoid high leverage, and only use coin-based to gamble for wealth when the bull market arrives,
the prerequisite is that you can truly predict the bull market. Contracts are not ATMs but rather a guillotine for retail investors,
if you want to survive the bear market, first honestly learn how to play with USDT-based.
Feeling confused about market trends? No direction?
Follow Chuanmu for a top-tier strategy team
Execute together and share the profits
