#交易类型入门 🔥 Understand the three major ways to engage with cryptocurrency in three minutes! Spot/Leverage/Contract, stop being confused 👇
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### **💡 Core Differences in One Table**
| **Type** | **Spot Trading** | **Leverage Trading** | **Contract Trading** |
|----------------|-------------------|-------------------|---------------------|
| **Nature of Operation** | Real coin buying and selling (e.g.: 1 BTC exchanged for 30,000 U) | **Borrowing coins to amplify capital** (5x leverage → using 10,000 U as 50,000) | **Betting on price fluctuations** (not holding coins, only settling the price difference) |
| **Risk Level** | ★☆☆ Low | ★★☆ Medium | ★★★ High |
| **Liquidation Risk** | None | **Yes** (price fluctuations → forced liquidation) | **Extremely High** (may lose all margin) |
| **Suitable Crowd** | Beginners/Long-term holders | Experienced traders/Short-term traders | Professional traders/Hedging players |
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### **⏰ When Should I Use It? Practical Scenarios**
- **Hodling Believers** → **Spot** (e.g.: Dollar-cost averaging BTC, treating it like a piggy bank during dips)
- **Short-term Traders** → **Leverage** (e.g.: Borrowing U 3x to go long before ETH Cancun upgrade, cashing out at 20% profit)
- **Hedging or High Volatility** → **Contract** (e.g.: Opening a **perpetual contract** short before BTC halving to hedge spot position risk)
> 📌 Personally often use **Spot + Small Leverage** combination: 90% funds in long-term spot, 10% in certain opportunities (like ETF approval) with ≤3x leverage
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### 🚨 **Blood and Tears Advice for Beginners**
1️⃣ **Only play with spot in the first year**! First, feel the market sentiment, then practice contracts with demo accounts (both Binance and OKX have them)
2️⃣ **Do not exceed 5x leverage**! Do the math: with 10x leverage, a 10% drop in coin price = liquidation to zero, and a 5% drop will keep you up at night!
3️⃣ **Always set take profit and stop loss for contracts**! Spend an extra 30 seconds when placing orders, it can save you 90% of your capital (don't ask how I know this 😭)
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💎 **Ultimate Mantra**
> Spot is **“buying the foundation”**, leverage is **“borrowing a ladder”**, and contracts are **“walking a tightrope”**
> Beginners build from the foundation, veterans use ladders to climb over walls, and experts dance on the tightrope!
> ✨ Advanced TIP: Binance's “**Copy Trading**” allows you to replicate expert operations, a great tool for beginners!
