Contracts are more poisonous than snakes. Contracts are only suitable for a small number of professional investors, and they require huge resources and energy to survive in the cryptocurrency circle.
I have summarized the reasons why most people are not suitable for contracts:
First, the risk.
For any investment, the first thing we should consider is not making money, but the risks.
How to control risks within a reasonable range is the prerequisite for whether you can make money. The cryptocurrency market is a highly volatile and high-risk market.
The market keeps fluctuating up and down. If we invest in spot goods, as long as we don't invest in junk coins or cx coins, it will never go back to zero. There is hope for a turnaround.
But once you start engaging in contracts, regardless of the multiples, your risk is 100%.
In a market that is already highly risky, you have amplified the risk many times over with contracts. Do you think you can handle it?
Secondly, the market can be manipulated.
Everyone engaging in contracts thinks they are participating in a fair game; in fact, they are not. For most people, just participating means they have already lost.
Basically, most people in the crypto space keep their coins in exchange accounts. Your coins are actually held by the exchange, which can use all your assets at will, similar to how banks can lend out our deposited money.
What do exchanges do with the coins? They can use massive chips to crash or pump the market.
Why do they crash and pump the market? Because these chips can be used to control market fluctuations and cause you to get liquidated.
All your position data has already been statistically analyzed and placed on the desk of the exchange decision-makers; you are just a lamb waiting to be slaughtered.
You may have noticed that the trends in the crypto market are strange, always spiking in the middle of the night. A single spike can cause countless people to get liquidated, and this often happens at night when you're asleep, leaving you no time to add margin.
Only liquidation is possible, so ordinary people engaging in contracts basically have no chance of survival.
Many people may say they are doing well with contracts now, but that's because no one is paying attention to them. Once they do, you're finished.
Third, human nature.
Speaking of human nature, we all know why gambling can be addictive.
Why do many people still not quit gambling even after losing their families? It's human nature.
The temptation to magnify profits by 100 times is simply too great; turning 10,000 into 1 million can elevate life to a new level.
Because the temptation in front is big enough, the greed in human nature makes people unconsciously rush forward.
Losing doesn't matter; you always feel that you'll recover next time, and after recovering, you'll leave this place of strife.
Then, after losing in a frenzy, when the principal is gone, they start borrowing. If they can't borrow, they sell their house or car, and the final outcome is likely liquidation.
Many people in the crypto space have taken extreme measures and chosen to jump off the building because they believe they can never repay their debts. Tragedy unfolds this way.
Fourth, contracts are only suitable for professionals.
Contracts require a lot of professional knowledge and data; many quantitative institutions in the crypto space are engaged in contracts.
They have big data, the smartest group of people in the world, and they are likely colluding with exchanges to fleece retail investors.
So they can survive in the contract space.
But most people are ordinary; their financial knowledge, resources, and cash reserves are actually negligible.
We cannot access some resources at the core layer of the crypto space.
Therefore, engaging in contracts is basically a dead end.
Even after all this, many will still try contracts.
However, you must try with small positions; the key is not to be greedy. Once you decide to go all in, you will be on a road of no return.
The crypto space is filled with venomous snakes and fierce beasts.
Everyone must be cautious, cautious, and then cautious again.
The market is currently turbulent, walking alone is lonely. Follow me for daily spot potential layouts and bull market strategy layouts.
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