One day in the crypto world is like a year in human life. This is not a joke, but a true reflection. When market fluctuations are intense, so are the emotional swings. Having walked many detours myself, I’ve summarized some experience — in this market, choice often determines the outcome more than effort.

I still remember when I first entered the space, watching others double their holdings in a week with leverage, and I was drawn in. The temptation of high leverage is really strong, always feeling that financial freedom is just around the corner. But what happened? I paid a lot of tuition fees before realizing that not everyone can walk this path. Years of practical experience tell me that there is no absolute good or bad investment method, only what suits you or not.

Today, I want to talk with you — are you more suitable for spot trading or futures contracts?

**Spot Trading: Looks Slow, But Actually the Most Stable**

Spot trading means directly buying coins. When the price goes up, you make money; when it goes down, you lose money. Just like buying stocks, the logic is simple and straightforward, without many twists and turns. The biggest advantage of this method? Clarity. The most you can lose is your principal, unlike futures where you could lose everything or even owe the exchange money.

Do you remember March 2024? Bitcoin hit a new all-time high and then sharply retraced, causing over 300,000 futures traders to get liquidated. Meanwhile, those holding spot? Their profits retraced, but they were still okay, their mindset stable. That’s the difference.

Spot trading is especially suitable for these types of people:

**First: Risk-averse investors.** You don’t want to be constantly anxious or wake up in the middle of the night to a liquidation notice. Spot trading is designed for you. The worst case is losing your principal, and you have peace of mind.

**Second: People with a research spirit.** Willing to spend time studying project whitepapers, team backgrounds, technical strength. These people focus on the project’s long-term potential, not chasing overnight riches. Bitcoin gained 180% in 2016 alone, and those holding long-term later laughed.

**Third: Part-time investors with limited time.** Working during the day or busy with other things, no time to monitor the market. Buying spot and leaving it be, no need to constantly watch prices, much more worry-free.

**Futures Trading: High Returns, Also High Risks**

Futures are a leverage game. You put in 100 dollars, borrow 900 dollars to trade. When you make money, it’s indeed fast, but losses come even faster. A reverse market move can wipe out your position instantly, even your principal.

Who is suitable for this? Experienced traders. Those with rich trading experience, quick judgment of market trends, and strong psychological resilience. They understand technical and fundamental analysis deeply, knowing when to enter and when to exit.

Honestly, not many are truly suited for futures. Most retail traders end up as cannon fodder. Just look at the liquidation numbers — there are always people hitting rock bottom every day.

**My Genuine Advice**

If you are an ordinary investor without particularly rich trading experience, just play it safe with spot trading. Pick a few promising coins, add to your position periodically, and hold for 3-5 years. This way, you can participate in market growth without worrying about losing everything overnight.

Don’t be brainwashed by stories of quick wealth through futures. Those success stories are rare; failures are much more common. The crypto world is full of myths about overnight riches, but what’s really missing are long-term winners. And most long-term winners are spot holders.

Choose spot, take it slow — it might actually be faster in the long run. This is a lesson I learned the hard way with real money.