Is the contract really more profitable than spot trading? Today we will talk about contract trading and spot trading.

Spot Trading:

I actually prefer spot trading. The most important thing in spot trading is not to buy at high prices; the more FOMO in the price, the less you should buy. Be patient and wait for a pullback to position yourself, and patiently wait for the market to explode. Altcoins in a bull market generally go from the bottom to the top with a range of 5 to 10 times, with some strong coins even reaching 30 times. Spot trading is relatively simple and the returns are very considerable.

Contract Trading:

The advantage of contracts, to put it plainly, is that it allows you to leverage small amounts of capital for large gains, quickly flipping capital to earn more profits. The larger the leverage, the greater the returns.

However, contract trading is quite complex and difficult. The difficult points in contract trading are:

1. Many friends become addicted to contract trading; they feel uncomfortable if they don't open a position for a day, and they don't want to miss any K-line. If they make a profit, they want to make more, and if they incur a loss, they want to recover it. The more frequent the operations, the easier it is to lose money.

2. This casino itself is unfair; the market manipulators control the market intensely. You are in the light while they are in the dark. They can see the backend data, knowing at what price most people will set stop losses and at what price most will face liquidation.

3. Stop Loss, this is a very difficult choice. Should I set a stop loss? This trade loses, that trade also loses, and in the end, one finds out that the losses are even greater than the liquidation. I believe that stop losses should be set; without them, encountering a spike in the market can lead to direct liquidation or even a margin call.

4. Emotional Control, many friends actually have the right direction but because of short-term fluctuations combined with high leverage, the floating losses can cause panic and tension, leading to being unable to hold onto positions. Only those who have witnessed market manipulation tactics understand this feeling.

5. Position Management, the most important thing in contract trading is the principal. If you have capital, there is a chance to turn things around. If the principal is gone, it will only lead you deeper into trouble. Some extreme friends end up with nothing: losing all their capital, borrowing funds, and losing even more.

Spot trading is being friends with time; when the time comes, what should come will come. Contracts can make people rich in a few days, but in the process, you might fall down.

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