During the market correction, my personal status is to continue waiting for entry signals...
I don’t have time to talk about the difference between spot and contract.
Let’s talk about spot prices first. I see a lot of people in the square saying that contracts cannot be done, and spot prices are safer. They will always go up anyway. I think this view is simply a scam and nonsense, especially when it comes to altcoins. I have been in the cryptocurrency industry for 7.8 years. I have seen too many altcoins return to zero, or even drop less than 1%. I Some of the ones that have a deep personal impression on me are
$EOS $LUNA $bkbt and of course there are many more. If you are unfortunate enough to buy the spot of this currency and choose to hold on to it, you will most likely end up miserable.
If you want to make money from spot stocks, I think there are two ways. One is to invest in Bitcoin and Ethereum at low prices in bear markets, and don’t touch the others. The second is to really understand a currency, have faith in it, and then buy it, waiting for 100 or 1,000 times, but I don’t have this ability. The rest depends on luck. Don't have any feelings for any currency, otherwise you'll be done with it!
Let’s talk about the contract. First of all, let me state that I am the one who makes the contract. Comparing contracts with spot prices, spot prices are like stocks and can be done using value investing methods, while contracts are futures and should be traded as speculatively as possible. This is the biggest difference between the two in my opinion.
For ordinary novices who have not carefully studied trading for several years, I do not recommend touching contracts. Speculative trading is anti-human. It requires a relatively high understanding of trading, and then through training, you can improve your ability to resist your own human nature, which can also be said to be tolerance. In addition, you also need a trading system of your own. Within a few years, you will not be able to summarize it and you will not be able to implement it. If you don't have the things I mentioned above, then if you make a contract, there is a high probability that you will end up with a liquidated position.
In short, it’s not that you can’t do it under the contract, it’s that you’re not good enough and you’re not suitable for it. I believe that traders who can actually make profits from commodity futures will most likely be able to make profits if they come to this market to make contracts. Because the core of trading is the same, it's just that the market is slightly different, so just adjust the strategy.
Just chatting for free, hope it helps someone who sees it.Attached is a profit curve chart of my contract.