A must-read for newbies in the crypto world: Spot, Spot leverage, contracts, how to choose?

In the crypto market, you can't avoid these three trading methods. Today, let's clarify it straightforwardly.

Core Differences Among Three Trading Methods

Spot Trading is the most straightforward—if you have money, you buy coins, and the coins you buy belong to you directly. There is no leverage and no risk of liquidation. It is suitable for those who want to hold coins steadily.

Spot Margin Trading is an enhanced version — the platform lends you money, allowing you to operate a trade worth up to 100 with just 10 (10x leverage). The risk comes when: if the cryptocurrency price drops sharply, your margin may be forcibly liquidated. Sufficient collateral assets are required, and you also have to pay the interest yourself.

Contract trading is the most brain-burning—you're not actually buying coins, you're just betting against the platform whether the coin price will rise. With 5 dollars, you can manipulate a position of 100 dollars (20x leverage), trade in both directions (you can short to make money), but the risk is off the charts. Contracts have expiration dates (daily, weekly, monthly, quarterly), while perpetual contracts have no expiration date.

Quick Comparison Table

How to choose?

• Lazy Person/Conservative Party → Spot (sleeping, just earn when the coin rises)
• Want to leverage for quick money → Spot leverage (medium risk, requires constant monitoring)
• Technical Flow/Short-term Hunter → Contracts (high returns, high risks, everything can be lost in a blink)

Newbies are advised to start with spot trading and only try leverage after getting a good grasp of the market rhythm. Contracts are not something to play with unless you have some skills.