Many newcomers to the cryptocurrency space are often stumped by their first step:

Should they trade spot or play contracts?

Which is easier to make money with? Which is more likely to lead to liquidation?

Today, Zhi Zhen will explain it in the simplest terms below 👇

✅ First, the conclusion:

If you want to survive long-term: trade spot

If you want to double your money quickly, but also risk losing it all overnight: play contracts

🟢 1. What is 'Spot'?

You spend money to buy coins, and the coins are yours.

For example, if you use 1000 USDT to buy BTC, then you hold Bitcoin,

if it rises, you profit; if it falls, you lose, but you won't be 'liquidated', the coins are still in your account.

📌 Suitable crowd: Newbies, small position investors, people who are optimistic about a project in the long run.

🔴 2. What is 'Contract'?

You don't need to buy coins; you just bet on whether it will rise or fall, with leverage, and can be liquidated at any time.

Contract trading is essentially a directional bet + leveraged amplification,

with 10x leverage, if you go long on BTC and it rises by 1%, you make 10%,

but if it falls by 1%, you could be liquidated to zero.

📌 Suitable crowd: Stable-minded, experienced, short-term players who understand position control.

⚖️ 3. Key Comparison Table

Project Spot Contract

Held Assets Yes (real coin purchase) No (bet on direction)

Leverage None Supports high leverage

Profit/Loss Mechanism Rise/Fall = Profit/Loss Trend direction correct = Profit

Liquidation Risk No liquidation Highly prone to liquidation

Suitable Crowd Newbies / Long-term Veterans / Short-term

❗️ Common mistakes made by newbies:

Seeing others make quick money from contracts, impulsively entering → Liquidation

No position management, going all in → Consecutive losses

Emotional control leads to increasing positions → Losing more and betting more

🧠 My suggestion:

If you're new to the space, please start with spot trading and gradually build your understanding of market trends, positions, and candlestick charts.

Don't listen to others saying '10x profits', what they earn is what you lose.

Trading coins isn't about speed; it's about understanding + mindset #美股代币化 #特朗普马斯克分歧 #Solana质押型ETF #加密市场回调 #Strategy增持比特币