Experienced

Newcomers to the cryptocurrency world should really avoid trading contracts. Although you can make money quickly, you can also lose it just as fast. If you lack the skills and don’t know how to analyze the assets, trading contracts is just giving away your money.

This time, the altcoin is rising so sharply; you can't predict when it will drop. If you go long, you might make a profit, but if it falls unexpectedly, you will struggle. You might hold on until you decide to short it, and as soon as you do, it starts to rise!

When you are stuck in a short position, it keeps rising until you get scared and begin going long, only to end up with your long position trapped at the peak when it starts to fall.

You will find that using stop-loss orders often leads to losses!

At first, you make money with a small position, and then you increase your position and continue making profits. Eventually, you become overconfident, and in the end, you lose everything and face liquidation!

As long as you can manage trades in spot trading, and as long as the fundamentals of the cryptocurrency are decent, you can save yourself. If you make a wrong move in contract trading, the more you keep averaging down, the faster you will blow up your account.