In the current cryptocurrency market, do you think it's better to trade contracts or spot?
If you are trading contracts, newcomers are advised to only play with Bitcoin and avoid everything else, because altcoins inherently come with leverage.
The reason not to recommend trading altcoin contracts can be seen from the recent Ban, where spot trading can leverage a small amount into a large sum, a typical case of crazy contract accumulation. Once a coin is on a contract, it doesn't actually need to pump to sell out; as long as the spot supply is tight and there are enough counterparties in a direction in the contracts, it can withdraw funds crazily.
For veterans,
Buying contracts with a high open interest to market cap ratio, regardless of what these coins do, just look at the contract open interest.
1. First, when the contract open interest occupies a high proportion of the market cap, it indicates that there are sufficient counterparties on both sides.
2. The higher the contract open interest compared to the market cap, the stronger the market maker is, indicating that the market maker has more chips, which provides a strong motive for price pumping.
3. Because there are enough counterparties for closing, once the price starts to pump (or dump), the high-leverage counterparties will definitely panic and run away, fueling the pump or shorting.
Follow the black cat, use precise strategic analysis, and select with millions in AI big data to keep yourself undefeated? The market never lacks opportunities; the question is whether you can seize them. By following experienced and the right people, we can earn more!
GUN XRP TURMP SUI SOL DOGE FUN MLN