Some people ask whether to play spot or contract in the cryptocurrency circle. Let me briefly share my personal opinion.
I think both can be tried. The trading methods in the cryptocurrency circle are nothing more than "spot" and "contract". In the cryptocurrency circle, the vast majority of players are retail investors. Most of the initial funds are below 100,000 U, a few are around 1 million U, and very few are above 5 million U. So what are the differences in their ways of making money? Both spot and contract can make money. The answer is yes, of course.
For players with more funds (such as more than 1 million U), they pay more attention to stability and long-term returns and don't care much about short-term fluctuations.
Such players generally prefer to do spot trading, adopt conservative strategies, and make bull-bear cyclical investments. The cycle can be as short as one year, as long as 3 years or even longer, and the rate of return is generally 5-10 times, which is already very good.
But for most retail investors, contract trading is a more popular choice. Retail investors usually pursue short-term returns, so the leverage of contract trading can bring higher returns, but the risk also increases accordingly.
In order to reduce risks, retail investors need to have a complete set of trading strategies, rather than blindly pursuing the high-leverage "small-for-big" approach.
I do not agree with this approach because it is often accompanied by excessive risks.
In the case of limited funds, excessive pursuit of short-term profits will lead to unbearable losses.
I prefer the "1+1" strategy, slowly accumulating wealth and achieving steady appreciation.