In the crypto world over the years, I've seen countless newbies fall into pitfalls. The development of the crypto world has reached a point where the number of coins has exploded—from the initial few players like Bitcoin, Ethereum, and Litecoin to now thousands of coins listed on exchanges, and on-chain there are even millions.
A common misconception among newbies is that mainstream coin prices are high and lack investment value, while those cheaper altcoins have greater potential for price increases and are easier to make quick money. Is it really like that?
The reality is: if you invest 10,000 yuan to buy Bitcoin and altcoins separately, although the altcoins may seem to have a more aggressive increase, they also drop more sharply when they lose. Bitcoin wins in terms of stability. Not long ago, a certain altcoin crashed 70% at midnight; such things basically do not happen with mainstream coins. Altcoins dance to the rhythm of the whales, and the risks are completely uncontrollable.
So here are a few tips for retail investors:
**If you want to trade futures with leverage, only touch Bitcoin and Ethereum futures.** Don't engage with mainstream and altcoin leveraged contracts. High volatility can indeed lead to wealth, but it can also accelerate losses. Most people cannot handle that kind of rollercoaster volatility. The leverage in contracts itself is an amplifier, and when combined with high-volatility assets, the risks grow exponentially.
**In the futures of Bitcoin and Ethereum, you can judge the market and apply appropriate leverage**—this way, the money earned won't be less than altcoins, but the probability of loss is lower instead. A stable fundamental combined with a rational leverage multiple is the way to survive long-term.
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SolidityJester
· 12-22 13:50
You are absolutely right. I've seen too many people get blinded by the rise of cheap coins, only to find themselves back to square one overnight.
Altcoins are just a gambler's game; a market maker's whim can freeze you in place.
When it comes to futures, you can really only touch BTC and ETH; other contracts are just a suicide trade.
The most common mistake newbies make is thinking they can turn things around in one go, but in reality, staying alive steadily is the real win.
I deeply resonate with this logic; not all fluctuations can make money.
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CrossChainBreather
· 12-22 13:49
You're not wrong, that guy next to me lost a fortune in the dumping incident and now regrets it every day.
I've seen alts crash overnight too many times, it's really unplayable.
Bitcoin is stable, but the rise isn't really that exciting.
Leverage contracts are either for getting rich or getting liquidated, there's no middle ground.
Actually, it mainly requires self-discipline to resist those tempting targets.
Damn it, why do we have to chase quick money, stable returns are really nice.
The risks of contract leverage are indeed underestimated; most people go in just to hand over their money.
If position management is done well, no matter how fierce the market is, there’s nothing to fear, just afraid of greed.
I kind of regret not listening to this advice earlier, it's a lesson learned the hard way.
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LowCapGemHunter
· 12-22 13:38
You're right, I've seen too many Newbies played for suckers by alts, going back to square one overnight.
At first, they think cheap coins have big rise potential and go all in, but then the market makers dump, and they're wiped out.
You still have to rely on stable ones like Bitcoin and Ethereum to make a living; only with leverage can you survive longer.
In the crypto world over the years, I've seen countless newbies fall into pitfalls. The development of the crypto world has reached a point where the number of coins has exploded—from the initial few players like Bitcoin, Ethereum, and Litecoin to now thousands of coins listed on exchanges, and on-chain there are even millions.
A common misconception among newbies is that mainstream coin prices are high and lack investment value, while those cheaper altcoins have greater potential for price increases and are easier to make quick money. Is it really like that?
The reality is: if you invest 10,000 yuan to buy Bitcoin and altcoins separately, although the altcoins may seem to have a more aggressive increase, they also drop more sharply when they lose. Bitcoin wins in terms of stability. Not long ago, a certain altcoin crashed 70% at midnight; such things basically do not happen with mainstream coins. Altcoins dance to the rhythm of the whales, and the risks are completely uncontrollable.
So here are a few tips for retail investors:
**If you want to trade futures with leverage, only touch Bitcoin and Ethereum futures.** Don't engage with mainstream and altcoin leveraged contracts. High volatility can indeed lead to wealth, but it can also accelerate losses. Most people cannot handle that kind of rollercoaster volatility. The leverage in contracts itself is an amplifier, and when combined with high-volatility assets, the risks grow exponentially.
**In the futures of Bitcoin and Ethereum, you can judge the market and apply appropriate leverage**—this way, the money earned won't be less than altcoins, but the probability of loss is lower instead. A stable fundamental combined with a rational leverage multiple is the way to survive long-term.