Behind the high returns is a survival game that the vast majority cannot bear.
There are always two types of people around me: one type constantly curses contracts as a digital meat grinder, while the other secretly surfs inside it. To be honest, most of those who curse have lost money before, while those who surf always think they can be the exception.
Earning that little money from a month of hard work can take just a few minutes in the contract market. This temptation is too direct, so direct that it makes people forget the existence of risks.
If you use ten thousand as capital for spot trading, a 10% increase only earns you a thousand; but with 10 times leverage, the same fluctuation can make your account jump one zero directly. This feeling of stacking money by multiples easily leads people to develop a false sense of success.
01 What makes the enticing shell of contracts so addictive?
The cryptocurrency market itself is extremely volatile, and contracts amplify this volatility by several times.
In extreme market conditions, just a few seconds can mean a point or two back and forth. For some small coins, a single spike can make people doubt life. Even for a 'stable player' like BTC, it's not surprising to see a significant pullback in just a few minutes when emotions run high.
What makes contracts so thrilling is not the correct direction judgment, but the feeling of money stacking up by multiples. Winning once might be luck, but winning several times in a row will make you feel like you've found a shortcut to wealth.
The same market volatility may only cause a slight movement in spot trading, while contracts can directly jump to a higher level of earnings. This gap is real and is also the reason many people cannot resist.
02 The cruel truth behind the glamorous facade.
High leverage amplifies gains while exponentially increasing the potential risk of losses. For example, with 100 times leverage, a 1% reverse price movement triggers a forced liquidation.
Data shows that among retail investors participating in contract trading in 2024, only 12% achieved sustained profits, while 67% of users experienced capital losses. Behind this are real lessons of blood and tears.
Many highly educated and elite individuals are also trapped in the quagmire of contract trading. They should have stable career development but are attracted by the myth of getting rich quickly in the cryptocurrency circle.
Retail investors generally have a blind confidence mindset: believing they are smarter than the market and can predict market trends. When facing losses, they refuse to stop-loss and instead increase their positions, trying to average down costs, ultimately getting stuck in a quagmire.
03 Dancing on the edge of a knife, where is the way to survive?
To be honest, I do not completely oppose contract trading, but I firmly oppose reckless adventures without preparation.
Rational fund management is the key to survival. The risk exposure of a single trade should generally not exceed 2%-3% of the account's funds; aggressive investors can control it at 5%-8%. Exceeding 10% risk can lead to a 70% drawdown in adverse periods.
Successful traders must have a mature trading system. The honing of a trading system requires long-term experience accumulation. The characteristics of a truly mature trading system are clear: a clear trading model, strict condition definitions, and continuous optimization and iteration.
In the contract market, a single mistake can bring devastating consequences. Strict execution includes: resolutely stop-loss, refusing to bottom-fish against the trend, and avoiding a gambling mentality.
For beginners, my advice is to start with spot trading, accumulate some investment experience through spot trading, become familiar with the ecological environment and market rules of the cryptocurrency circle, and cultivate the correct investment mindset.
04 Conclusion: Contracts are not evil; what is evil is the human heart.
Contracts are just tools, like a knife: in the hands of a chef, it is a tool for creating delicious food; in the hands of a criminal, it becomes a weapon.
If you can control your position, think ahead about stop-loss and take-profit, treating it as an amplifier rather than a turning point, it can simply be a sharp tool.
Once you take 'just one more time' as a belief, no matter how many opportunities the market gives you, in the end, you will recover both capital and profits.
Why do people keep playing contracts? Because it is really too close to 'quick money'. But true experts understand one principle: surviving longer in this market is more important than making quick profits. Follow Bin Ge to learn more first-hand information and accurate points about the cryptocurrency circle; learning is your greatest wealth!#加密市场反弹 #易理华旗下TrendResearch减仓 $ETH
