Why are there so many people playing with cryptocurrency contracts even though they have been liquidated?

1. Contracts can be shorted. How can you short with spot? If you don't short, you can only hold the quilt or hold U and watch when the price falls.

2. Contracts can be leveraged. How can you leverage with spot? Do you borrow money from the bank to leverage?

3. Because you can short. Contracts can also be used for hedging and risk avoidance. (While avoiding risks, of course, you also give up possible profits)

Anything with leverage has a risk of liquidation.

Spot also has a risk of zeroing. (Although most mainstream coins will not return to zero for a while).

Leverage has its correct use.

I usually only use 3x, and add it at a relatively low level.

"Pudat Finance" on YouTube has said that 100x leverage is safer than 10x leverage. But it is combined with the safety of position management. Ordinary people are just a bunch of shuttles, and it would be strange if high leverage does not explode.

Contracts are like swords of heaven, and those who know how to use them use them well. If you don't know how to use it, try to use it as little as possible.

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