First of all, in my eyes, there is no 100% right or wrong trading method. They are all just risk exchanges. Spot is essentially a 1x leverage contract. In my mind, there is essentially no difference.
But why don't I hold the spot? There are mainly 2 reasons
1. Some people will say that futures contracts are very risky, so it is better to hold spot. This logic itself does not sound problematic, but if you think about it carefully, in fact, the underlying logic of holding spot and futures is to make money. I am right. I don’t understand the development of blockchain at all, and I have never spent the time to understand it. Naturally, I have no faith. If I can only stake 10 yuan to buy something for 100 yuan, I naturally won’t want to stake 100, and I can still use the remaining 90. Other things, that is, "fund efficiency"
2. Returning to the matter of making money, because you will not be liquidated when doing spot trading, it is natural to regard the entire position holding time as one operation cycle, and because usually those who hold spot positions have the concept of "long-term investment", they feel that it cannot be done. If you lose, you will lose money if you sell it, or simply not sell it at all. But if you can accept that investment is the accumulation of long-term positive expectations, you naturally don’t need to care about a single success or failure. However, the underlying logic of holding spot stocks can easily make people deviate from this idea. If you buy spot stocks, you will not be liquidated, so you can wait until you make money before selling. Enough. Of course, everyone is happy to make money, but holding spot stocks will make you forget the risks (not stop losses) because you don't liquidate your position. Therefore, the second reason for making contracts is to "make each operation independent and strictly control each entry and exit." risk"