Sky of Star

Actually, all bull and bear cycles in cryptocurrencies come from the effect of BTC, rather than good or bad news of any single project. Personally, I don’t recommend trading futures/derivatives contracts. Contracts are gambling. The reason is that your own principal is already small, and you then use leverage to magnify the risk of losing your principal—this is speculation. Especially when your principal is larger, you are even less likely to trade contracts, because the accounting between contracts and spot can be worked out. If you buy spot at the same bottom price, your final returns depend on how much quantity your capital can purchase. With contracts, it seems like leverage magnifies your position size and thus benefits your final returns, but it hides the mechanism that allows your principal to be wiped out to zero. If you’re investing, don’t rely on luck or shortcuts. If you’re speculating, it matters even more that you have personal market sensitivity and decision-making ability. If you’re hesitant, indecisive, or inconsistent, spot trading is more suitable for you, but it also tests your patience and principal. Contracts test your position size relative to your capital. With contracts, you might think the key is just not to get liquidated—but a position/capital ratio that can avoid liquidation is still not as good as buying low-priced spot. So to put it simply: investing in spot means acting within your means, holding patiently. Speculating with contracts is about betting small to win big—take profit when you have a good run. I believe doing a good job of investing in spot is easier and simpler than speculative contracts.