Beware of the risks of crypto contracts; investment must be cautious.

In cryptocurrency investment, contract trading seems to hold the opportunity for immense wealth, but in reality, it is fraught with danger.

Newcomers often encounter situations like 'spike trading.' For instance, with 100x leverage going long, you hope your assets will skyrocket; investing 1 million might turn into 100 million, but the opposing side's short-selling power should not be underestimated.

Here, resource allocation is severely imbalanced. You bet your entire fortune, while the opponent might hold a massive amount of digital currency, selling at a low price, causing the coin's price to drop instantly by 1%.

Don’t underestimate this 1%; under 100x leverage, 1 million in principal can be wiped out in an instant, resembling gambling.

Small-cap coins are even more affected, as you can see from the distribution of coin addresses; some coins are heavily concentrated in a few addresses, clearly under tight control. Their price fluctuations lose reference value and become a 'toy' for manipulators.

Investors must stay away from contract traps. In comparison, risks in spot trading, airdrops, and mining are slightly lower. Even if choosing spot trading, don't put all your eggs in one basket; diversifying investments and allocating reasonably is the only way to hope to safeguard your wealth from being devoured by the market.