The backend crashed again—“Analyst, with 100,000 capital entering the market, should I go for spot trading or gamble on contracts?”
Every time I see this question, I can't help but laugh. This isn't about choosing an investment method; it's clearly about choosing between “sleeping soundly” or “watching K-lines at 3 AM and losing hair.” Don't listen to those extreme statements like “contract wealth theory” or “spot trading has no future.” I have two real cases around me that are more practical than any theory.
Old Wang: Using the “stupid method” for spot trading, rolling from 100,000 to 2,000,000 in 3 years
Old Wang is the “stabilizing force” in my fan group, a typical “only recognizes spot trading” person. His operations are so simple that people feel there's “no technical content”: every time a mainstream cryptocurrency drops over 20%, he takes out 10% of his capital to accumulate in batches; if it rises over 30%, he sells 1/5 of the position and holds the rest.
During the time when the market fluctuated the most last year, everyone in the group was shouting 'buying the dip at halfway up', but he calmly noted in his notebook, 'XX cryptocurrency dropped to support level, added 2000U today'; in the first half of this year, when top cryptocurrencies surged, while some were showcasing screenshots of contract doubling, he silently sold 1/3 of his holdings in three batches, then turned around and withdrew the profit to buy his son a new computer.
Not long ago, during a gathering, he showed me on his phone: with a principal of 100,000, after three years, there are over 2 million in the account. The key point is—he has never lost sleep over the market in these three years. 'Spot trading is about 'slow money', but slow money is the most stable. It won't make you rich overnight, nor will it take you back to square one overnight.' I still remember this saying.
Xiao Zhou: Contracts are like a 'roller coaster', falling from 200,000 to 3,000 in three days.
Xiao Zhou is another extreme, a post-95 young man, whose contract trading methods are even 'wilder' than veterans. He started off saying, '10 times leverage for the base, 20 times is the real thrill'. When the market is favorable, he indeed shines: last year, when a top cryptocurrency had sudden positive news, he entered with 15 times leverage and earned 120,000 in one day, sending a red envelope of 888 in the group, saying, 'This money is much more enjoyable than working.'
But with contracts, winning many times is never enough to offset one loss. Recently, when a certain cryptocurrency had negative news, he didn't believe it and instead leveraged 20 times to 'buy the dip'. As a result, after three consecutive large bearish candles, he woke up the next morning to find his account completely cleared—just the day before, he was still planning to change his phone, and now he could only eat instant noodles.
I asked him if he regrets it. He scratched his head and smiled: 'Not really regretting, just realized I'm not cut out for this. Contracts are like racing cars; you need technical skills, mindset, and stop-loss lines, all are essential. For ordinary people, it's just a 'no-brainer'.
My core view: don't choose one or the other; use a 'combination punch' but prioritize.
Many people ask me, 'Which is better, spot or contracts?' In fact, this is a false question—there's no absolute good or bad, only 'suitable or not'.
Who is suitable for spot trading? Those with a stable mindset, who don't have much time to watch the market, and who accept 'slowly becoming rich'. It earns from the long-term appreciation of the cryptocurrency and time, although short-term returns are not as good as contracts, it excels in 'principal security with a safety net'.
Who is suitable for contracts? Those with rich trading experience, who can strictly adhere to stop-loss and take-profit, and who can afford to lose their entire principal. It is a 'tool', not a 'gambling device'. If used well, it can amplify profits; if not, it becomes a 'principal harvesting machine'.
Real seasoned players never go 'all in on spot' or 'gamble on contracts'. Their strategy is to first hold 60%-80% of spot assets for stability, this part 'won't budge'; for the remaining 20%-40% of funds, they wait for a clear market signal before opening small contract positions to take advantage of fluctuations, and leverage should never exceed 5 times, with stop-loss set within 5%.
Let me say a harsh truth: don’t gamble tomorrow with 'money for meals'.
If the 100,000 you have is 'spare money', and losing it doesn't affect your life, then you can try 10,000 to 20,000 on contracts (remember, it's 'try' not 'gamble'); but if this 100,000 is 'retirement money' or 'money for buying a house', listen to me, honestly trade spot. Even if it only increases by 20% in a year, it's better than losing it all overnight.
The cryptocurrency circle never lacks 'wealth myths', but it also never lacks 'liquidation tragedies'. Those who shout 'contracts are guaranteed to profit' either have never lost or want to cut your leeks. Regular people entering the market are not seeking 'instant fame', but rather 'steady happiness'.
Next time someone tells you 'contracts can make you rich', just throw this article at them—after all, those who can leave with a smile are always smarter than those who cry over liquidation. Follow me, next time we'll talk about 'how to increase and decrease positions in spot trading without missing out or getting stuck', with plenty of practical tips to save you from three years of detours.
