Someone asked whether to play spot or contracts in the crypto world. Let me briefly explain.
Personally, I think both can be played. There are two trading methods in the secondary market: "spot" and "contracts." Most individual players in the crypto space are retail investors, with initial capital below 100,000 USDT; a minority around 1,000,000 USDT; and a very small number above 5,000,000 USDT.
So how do their ways of making money differ? Can both spot and contracts be profitable?
The answer is definitely yes, both can.
For players with over 1,000,000 USDT, stability is more important. They do not care about short-term gains; they prefer spot trading, leaning towards conservative trading, and engaging in cyclical investments during bull and bear markets, with durations ranging from one year to three years or even longer, achieving returns of 5-10 times, which is sufficient.
What about the vast majority of retail investors? Based on entry timing and capital size, contracts are a more favored choice for retail investors, as they pursue higher expectations for short-term gains, but of course, the risks are also higher, which requires a fairly complete trading strategy.
I do not agree with the strategy of betting small to win big. Betting small to win big certainly requires increasing risk. With relatively small capital, wanting to bet small to win big will undoubtedly involve a certain gambling mentality. If you lose, you may end up with nothing. I care more about the 1+1 strategy, gradually accumulating wealth.