Why do some people say that trading cryptocurrencies should not involve contracts? The truth is these points:

Many people say that trading cryptocurrencies shouldn't involve contracts, not just because contracts offer high leverage options like 100x or 125x, and it's not just a fear of 'liquidation spikes'; the core issue is that high-leverage contracts are essentially pure gambling.

Playing with a few hundred dollars is harmless, but going all in on high leverage is just asking for disaster. In fact, the original intention of contracts is to improve capital efficiency—perpetual contracts have a cost associated with funding rates, while delivery contracts have premiums that can be positive, negative, or even zero; the problem is that most people don't understand the logic behind it.

People resist contracts primarily due to their own issues: they lack a trading system, their risk tolerance is poor, and they lack strict discipline, often holding onto losing positions. They think it's fine if spot prices drop by 30%, but a 3x contract could wipe them out, which is actually a misunderstanding.

Being able to endure a 30% loss already indicates a lack of trading discipline, which is no different from gambling; if they claim to be long-term investors, they should not engage in contracts—there are additional costs involved, and it increases risk.

The prerequisite for engaging in contracts is to have strict stop-loss measures and a clear understanding of the maximum loss one can tolerate. For example, if you have 100,000, and the current price of BTC is 100,500, if you determine that 100,000 is a support level and you can accept a 10,000 loss, you can open a 20x leveraged position, as long as it remains within your risk tolerance; but without a stop-loss, if it falls to 95,000, you would face liquidation and loss of all funds.

The only reasonable way to trade contracts is in one situation: when it is known to be a bull market and large pullbacks are unlikely, using no more than 3x leverage to allocate capital to cryptocurrencies, which is the prudent choice #ETH走势分析 #PEPE突破下行趋势线 $BTC $ETH