Why should most people in the cryptocurrency circle avoid directly getting involved in contract trading?
Contract trading is often portrayed in the cryptocurrency circle as a "magic wand" for rapid wealth growth, but in fact, for most people, this is not a wise choice. The root cause is that people generally pursue quick success and dream of making a fortune with a small investment, but often ignore the huge risks behind it.
Many participants in the cryptocurrency circle are working class people with limited capital reserves, and they enter with the dream of "reversal". They expect to increase their limited funds quickly through contract trading. However, contract trading is like a double-edged sword. While high leverage brings high returns, it also hides the risk of huge losses caused by drastic market fluctuations, and may even make people return to the pre-liberation era overnight.
In contrast, although spot investment has a steady pace, the returns are slow and the risks are relatively low. But for wage earners, even if the spot value doubles, it is difficult to achieve a leap in the quality of life. It should also be pointed out that holding spot tests the patience and determination of investors. It is also a test for many people to stick to their original intentions in the face of market changes.
For investors with limited funds, if they cannot bear the high risk of contract trading, they may need to explore a more stable investment path. Of course, this does not mean that contract trading is completely rejected. The key is to make a rational assessment and not to regard it as a shortcut to get rich overnight.
In the volatile field of the cryptocurrency circle, many veterans have experienced the baptism of contract trading. They either advise novices to act cautiously or emphasize their awe of the entire cryptocurrency market. These are valuable experiences and lessons.
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