Contract trading: a sure win? Or a "stable loss"? Be careful not to be cut off!

Contract trading seems tempting, and the power of leverage makes many people think that they can double their money quickly and make a lot of money in a short time. But the reality is often that while coveting high returns, the risks they bear are also multiplied. Most people do not get rich through contracts, but are ruthlessly "educated" by the market.

First of all, the high leverage of contracts means that with a slight fluctuation, your funds may be cleared instantly. No one can predict the fluctuations in the market. Even if you have the best technology and judgment, the uncertainty in contract trading cannot be ignored.

Secondly, contract trading can easily make people lose their minds, especially when they lose money, people often increase their positions with a gambler mentality, hoping to turn the tables. As a result, not only did they not turn the tables, but they got deeper and deeper, and finally they couldn't even keep their principal. The high-risk gameplay of contracts is not suitable for most people, and they will be ruthlessly harvested by the market if they are not careful.

Furthermore, contract trading platforms sometimes use "pin insertion" and other means to cause users to blow up their positions, which is already a "painful lesson" experienced by many people. Even if you make the right judgment, you may lose everything because of these "black swan events".

In summary, the risk of contract trading is much greater than spot trading. If you want to survive and make money in the cryptocurrency circle for a long time, it is best to avoid contracts and pay more attention to spot trading. Don't fantasize about getting rich overnight, only steady progress can go further.