What is the significance of contracts?
1⃣ Unlimited opening direction: For example, spot trading can only go long, but when you are not optimistic about a coin, you can go short using contracts.
2⃣ Flexible use of funds: For example, if you want to open a position of 10,000 U, you can do it with 1,000 U at 10x leverage, or 500 U at 20x leverage, which makes it easier to add to your position.
For me personally, these two points are crucial. I really can't understand why some people, with only 10,000 U, dare to open positions of 10,000 U at 10x or 20x leverage; they are simply gambling.
Using high leverage to borrow funds multiple times your own capital for speculative activities, liquidation is common, while making money is rare.
If you want to use contracts, first understand the basics, such as leverage ratios and funding rates. If you don't know anything and end up liquidating your position, don't blame the tools for harming you.