People always seek the safest way to get returns on their investments. By “safest return,” they mean keeping their money in a form they can easily access (liquid) while earning interest on it. For example, if a bank offers 5% interest on dollars, many people are satisfied with that steady, low-risk return.
But there is one big risk here: if the bank goes bankrupt, only a small amount may be refunded.
Now, is there an even safer return? Yes—U.S. government bonds. Bonds don’t offer very high interest, but they’re considered extremely safe. When bond interest rates increase, markets worldwide often decline as investors shift money toward bonds. Big countries and companies regularly invest part of their funds in bonds for stability and to secure a portion of their income.
But when bond and bank interest rates decrease, people begin to look for higher-risk, higher-return investments, such as stocks and real estate. They see stock trading as one of the hardest things to master, and they’re often afraid of stock market volatility. Stocks can rise or fall 5-10% in a single day, which feels extreme to many investors who aren’t comfortable with such swings.
Even so, with the right analysis, people can make an educated guess about which companies or industries might perform well in the long run. For instance, when Facebook went public, many believed it had a bright future, like Apple and Microsoft. Today, with NVIDIA leading in AI technology, an early investment in such companies could lead to great returns and dividends.
Still, stocks make people nervous. If bad news hits one company, its price might drop by 5-7%, leading to losses. To make investing safer, indexes like the NASDAQ 100 and S&P 100 were created. These indexes hold the top companies in a way that spreads out risk, so that bad news about one company won’t drag down the whole portfolio.
Even with index funds, though, there’s lingering worry—market corrections can happen anytime, and people fear they’ll lose. Most investors don’t succeed because they lack patience, and fear drives them to make hasty decisions.
When you bring up crypto markets to such cautious investors, they often balk. They think it’s not investing, but gambling, because crypto prices can swing up or down by 10% in an hour. They see the space as unpredictable and risky, and their reaction is often like jumping at the sight of a ghost.
Yet, people love risk, and high returns bring strong temptation. Many people enter the crypto market hoping for high profits but aren’t mentally prepared to handle the extreme volatility, so they lose it all. For us, the spot market feels almost too stable—like a pond. We crave the ocean’s waves, so we’re drawn to the rush of futures trading.
This adrenaline rush traps us. A small loss or a little heart-pounding volatility is almost like a must-have. Without futures trading, life starts to feel dull.
So, how you handle this adrenaline rush of futures trading is up to you, but remember: nobody has become wealthy in crypto by relying only on futures trading. Real wealth has been made in spot trading. Memecoins, for example, have created thousands of millionaires. Some were lucky, some had inside information. Many also profited from spot coins—like buying BNB at $6 and selling at $600, or MATIC with a 100x return. There are countless examples in spot trading.
If you leave money in a bank for a year, it gives you 6% interest, but when the crypto market gives you 12% in a month, it doesn’t feel enough. You want more, so you take bigger risks—and often face bigger losses.
Patience is irreplaceable. Prepare yourself mentally, be content with small profits, and remember: protecting your portfolio is one of the best strategies you can have.
