Yesterday, Old Zhang was staring at his phone in a daze and suddenly sighed, "I really regret touching contracts... 800 yuan principal, burned through in just five days. If I had known, I would have just bought some spot and held onto it." 😫

Those words really hit home—because a few years ago, I was just like him. Back then, I had only one thought in my mind: make money fast, make more money. And the result? I ended up with a bruised nose and a swollen face. 😅

The first time I played with contracts, someone told me "you can double your money in a day." Then I looked at spot gains, which moved as slow as a snail. I happened to have 600 yuan of spare cash on hand, and I couldn't resist the itch—went all-in on BTC with 10x leverage. Who would have thought I'd hit a market plunge on the very first day? BTC dropped just 8%, and the system started going crazy with warnings ⚠️. In the heat of the moment, I thought, "Add more margin and ride it out," but not only did I fail to recover, I ended up losing another 200. Looking back, I was really too eager and impulsive.

It took losses for me to realize: choosing between spot and contracts isn't about "who makes money faster," but rather you have to ask yourself "can you handle the risk?" Over the past few years, I've advised quite a few newbies like Old Zhang, and here's the summary:

**1. First, consider if your principal is enough**

If your principal is below 1500, I suggest you stick to spot trading. Take Old Zhang as an example—he rushed into contracts with 800 yuan, and with 10x leverage, it only takes a 10% drop in BTC to get liquidated. Watching your account go into the red makes you panic, and the more you add to your position, the more you lose, until your principal is completely wiped out.

Spot trading is different—you still hold your coins, so you have peace of mind. Even if it drops 20%, as long as you don't sell, there's always a chance for a rebound.

**2. Understand how wild the volatility is**

The volatility of contracts is several times that of spot. For example, if ETH spot drops 5%, a 10x contract would lose you 50%. It's easy for newbies to lose their cool and start making reckless moves.

I once held ETH spot, and even after a 15% drop, I didn't panic. I waited about half a month, and sure enough, the market picked up again.

**3. Think clearly about what you want**

If you want to "make fast money," you have to be prepared for "possibly losing it all." Old Zhang was focused on "making 300 yuan in a week" from the start, and ended up getting trapped.

Spot trading is about long-term gains. For example, I bought SOL last year, held it for four months, and it went up 40%. It was slow, but I didn't have to worry every day about getting liquidated.

If you want to take things step by step and play it safe, spot trading is the right way for newbies. 🌱

Don't just envy others doubling their money in a day with contracts. Those who can really laugh to the end are often the ones who can hold onto their spot positions.