The first lesson to survive in the crypto world is: first, recognize your own capabilities.

This week, I had a friend chat with me again, holding 100,000 yuan and wanting to enter the market. "Should I play it safe with spot trading, or jump into contracts?" I almost became numb listening—this question gets asked three hundred times a year.

Honestly, I’ve never been able to give a standard answer. Risk is like shoes—without the right fit—people’s tolerance varies greatly, and choosing a path depends entirely on your own character.

I have two old friends whose experiences serve as living lessons.

**Story 1: Stubbornness Earned a Windfall**

Old Zhang is the kind of person who’s very meticulous—over the years, he’s been dead set on only buying spot. Bitcoin, Ethereum—he’s been trading these big players. During last year’s harsh bear market, when everyone in the group was mourning, he saw it as a chance to scoop up bargains. Every day, without fail, he posted screenshots of his increased positions and boasted to us.

I asked him worriedly, "Aren’t you afraid of further drops?"

He grinned and showed me his account, explaining his strategy: "Buy in stages, add more when it dips, sell in stages when it rises—never be greedy to the end." With this seemingly simple approach, over three years, he turned 50,000 yuan into 2 million. He often says, "Making money is a bit slow, but at least I sleep well at night."

**Story 2: The Cost of Leverage**

Liu is a different story altogether. This guy is so familiar with his trading app that it’s like his home screen. Starting with 10x leverage, 20x is routine. When the market is smooth, he can make more in a day than I earn in three months. I’ve seen him turn $3,000 into $20,000 firsthand, and he was so excited that everyone in the bar heard his cheer.

But good times didn’t last long. Two months later, the group chat suddenly exploded—someone sent a screenshot showing his account had only a few cents left. Turns out, he repeatedly traded against the trend and couldn’t control his positions. In just three days, his account was wiped out.

**How to choose?**

These stories illustrate one point: there’s no absolute right or wrong, only what suits you.

Spot trading is like shopping at a market—you see something you like, buy it, keep it at home. Sometimes you make a profit, sometimes you lose, but at least you don’t carry too much stress. Contracts are like gambling at a table—you might turn things around with a good hand, or you could go all-in and lose everything instantly.

The key is to ask yourself three questions: First, can you accept the possibility of losing your entire principal? Second, can you truly control your hands and avoid impulsive trades during big market swings? Third, do you understand the market well enough to handle the risks of leverage?

If your answer is yes to all three, contracts might be suitable; if any answer is no, then spot trading is the path you should choose.