For newcomers in the crypto world, it is strongly recommended to start learning with spot trading and only consider contracts after fully mastering it.
1. Why is spot trading more suitable for newcomers?
1. Risk Level
Spot: Loss limit = principal going to zero (e.g., 1000 yuan at most loses 1000 yuan)
Contracts: Possible liquidation debt (the higher the leverage, the greater the risk; a 10% drop at 10x leverage results in a 100% loss)
2. Learning Curve
For spot trading, you only need to master:
✅ Buying and Selling Operations
✅ Basic Market Analysis
✅ Wallet Transfers
Contracts require additional mastery:
❗️ Leverage Selection
❗️ Margin Calculation
❗️ Liquidation Price Alert
❗️ Funding Rate Arbitrage
3. Psychological Influence
Spot fluctuations are relatively mild, suitable for developing market perception
Extreme volatility in contracts can lead to emotional trading (a common fatal flaw for newcomers)
2. The Hidden Thresholds of Contracts (Easily Overlooked by Newcomers)
1. Differences in Exchange Mechanisms
Differences between Full Position and Isolated Position modes
Differences between U-based and Coin-based contracts
Difference between Mark Price and Latest Price
2. Hidden Costs
Funding Rate (charged every 8 hours, long-term holding may accumulate high costs)
Slippage issues (a small price difference triggers liquidation at high leverage)
3. Strategy Complexity
Spot Simple Strategy: Regular Investment, Gradual Profit Taking
Contracts need to be paired with: Hedging, Grid Trading, Swing Trading, etc.
3. Suggested Learning Path (Phased)
Phase 1: Spot Basics (1-3 months)
Essential Learning Content
Buy BTC/ETH through the exchange (recommended Binance/OKX)
Learn to check the top 50 tokens ranked on CoinMarketCap
Understand basic indicators like Market Cap, Circulating Supply, Trading Volume, etc.
Practical Goals
Complete more than 10 spot trades
Try to withdraw tokens from the exchange to the wallet
Practical Goals
Phase 2: Contract Experimentation (after 6 months)
Prerequisites
Spot trading continues to be profitable for more than 3 months
Can accurately explain concepts like 'Funding Rate' and 'Liquidation Price'
Safety Strategies
Initially use leverage below 5 times
Single trade should not exceed 2% of the principal
Must set a stop-loss
Establish your own trading discipline (e.g., profit-taking and stop-loss rules)
Participate in a bull market cycle to observe market sentiment
4. Key Recommendations
1. Start with a simulation account
Both Binance and OKX have contract simulation trading functions; it's recommended to simulate for at least 1 month before going live.
2. Beware of the 'Get Rich Quick Trap'
Those who show contract profits on social media usually do not display more liquidation records
3. Remember Two Formulas
Spot loss speed: Principal × Price Drop Percentage
Contract loss speed: Principal × Leverage Factor × Price Drop Percentage
5. Common Questions for Newcomers
Q: What should I do if I see others making tens of thousands in contracts in a day?
A: Statistics show that 98% of contract beginners lose money within 6 months; survivor bias only lets you see the winners.
Q: When can I start learning contracts?
A: When you can answer the following questions:
Why does BTC halving affect the price?
What is Ethereum's Gas fee mechanism?
How to determine if a project's TVL is real?
Summary: The first principle of survival in the crypto world is to stay alive, and spot trading is the best starting point for learning. Once you have sufficient market knowledge, contracts will naturally become a tool rather than a gamble.
