Let's talk about how to play in the cryptocurrency market and how to choose a path that suits you.
If you're tight on cash (under 10,000), can you make big money with contracts?
If you don't have much money, under 10,000, some people want to rely on contracts to turn things around quickly.
This idea isn't wrong; contracts are about capturing market fluctuations. The bigger the fluctuation, the quicker the profit.
With small funds and high leverage, if you get the direction right, it's possible to double your returns. But the risks are also high; one wrong move and you could be liquidated, especially for beginners.
So, when trading contracts, you need to manage your position well, avoid heavy investment, set stop losses, and don't rely on luck.
Although the risks are high, with a small principal, taking a chance can also help you quickly accumulate experience and find your footing.
If you're financially comfortable (over 10,000), why is spot trading more stable?
When you have more money, over 10,000, I recommend spot trading.
Why? Because spot trading is much more stable.
Choose good coins, hold them long-term, and just follow the market's rise. Don't fear short-term fluctuations; as long as you don't sell, the immediate losses don't count as losses. Spot trading allows you to face market ups and downs calmly.
Moreover, you don't have to worry about liquidation every day like with contracts. Buy at low points, wait patiently, and as the market warms up, returns can be substantial. If done well, doubling is not just a dream.
So should you choose contracts or spot trading?
Actually, it depends on how much money you have at hand.
If you have little money and want to make quick money in the short term, contracts can be tried, but you must have risk awareness, manage your position, and learn to set stop losses.
If you have a lot of money and seek stable appreciation, spot trading is the most suitable, avoiding large risks, holding good coins long-term, and returns will naturally come.
In summary:
Contracts: Suitable for those with little capital who dare to strive for quick money from short-term fluctuations. But don’t put all your bets on it; setting stop losses is key.
Spot trading: Suitable for those with more capital who seek stability, holding good coins long-term, and following the market's rise.
Are you a contract trader or a spot trader? Look at your funds and choose a path that suits you.
In the cryptocurrency market, seeking stability to win is the way to go!
In the next layout direction, I will guide you to aim for the lucrative opportunities in altcoins, especially those with great potential projects, where a 10x expected return is not a problem. If you want to make big money in a bull market, like + comment, and I'll take you through the entire bull market layout!
