Spot VS Contract❗️
For new friends, it may be helpful to understand the following content, which is briefly summarized:
What is spot?
It's like you bought a bottle of Maozi in a store for 100 yuan. After a period of time (maybe a month or a week), someone is willing to buy it back at 300 yuan, then you can choose to sell it and get a profit of 200 yuan, which is equivalent to tripling.
If you bought this bottle of Maozi for 100 yuan, and then the price fell to 80 or 70 yuan, you can also choose not to sell it, but hold it and wait for the price to rise. During this period, you will not suffer any losses except time (but it will occupy your funds until the price rises to your satisfaction).
So what is a contract?
It can be understood as a kind of gambling, just like playing Russian roulette. Sometimes you may bet with 1 dollar, but you may end up winning tens of thousands or even millions of times the prize, or even win a prize pool of hundreds of millions of dollars, but you may also lose it completely. Contracts can also be regarded as semi-spots, which require mindless position increase, provided that there is enough funds. Of course, you can also use low leverage to operate light positions to reduce risks.
In short, spot and contracts each have their own advantages. The difference is that if the contract has poor self-control, it may eventually explode, especially in extreme market conditions. But spot will not, holding spot only requires waiting for prices to rise.
In spot trading, find a few popular currencies, wait for low points to buy the bottom, and then hold and wait for prices to rise, without having to stay up all night to fight.
In contract trading, staying up late is commonplace, and sometimes the money earned may not be enough to pay for the cigarettes you smoke during the stay-up period.
In general, contract trading is more stimulating, while spot trading pays more attention to mentality.
Both can make money, but contract trading has relatively high requirements for currencies, and not all currencies are suitable for contract trading.
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