#Gate Latest Proof of Reserves Reaches 10.453 Billion Dollars# Dear friends who have just joined the Crypto Assets field, please remember one thing: it's essential to stay calm when entering this market! Futures Trading is not a tool for quick wealth, but rather a mechanism that can easily lead to losses for Newbies.
I have witnessed too many newbies trying high-leverage Futures Trading immediately after registering on the platform, often resulting in their account funds being wiped out within just a few days, losing confidence in the entire market. Carefully read the text below, which may help you avoid unnecessary losses and make your Crypto Assets journey smoother! Part One: Why Spot Trading is More Suitable for Newbies? 1. There is a fundamental difference in risk levels: - Spot Trading: The worst case is losing the funds you invested, for example, if you invest 1000USDT, you could lose up to that 1000USDT. - Futures Trading: Not only can it lead to total loss of funds, but it can also result in more serious consequences due to leverage; with 10x leverage, a mere 10% drop in coin price could cause all funds to evaporate. 2. The differences in operational complexity are significant: - Spot Trading: Just need to master the basics of buying and selling, market chart interpretation, and transfer operations. - Futures Trading: Requires understanding complex concepts such as leverage settings, margin calculations, liquidation mechanisms, and funding rates. Most newbies start operating without fully understanding the features of the futures trading interface, which is a very dangerous behavior. 3. Psychological Endurance Challenge: - The spot price fluctuations are relatively mild, giving you more time to think. - The contract price fluctuates wildly, and dramatic ups and downs in a short period can easily lead to emotional loss of control and irrational decision-making. Part Two: Risks that Newbies Easily Overlook in Futures Trading 1. Complex trading mechanisms: - The difference between full position and isolated position needs to be clearly understood. - It is easy to be forcibly liquidated if you do not understand the difference between the mark price, liquidation price, and the latest market price. 2. Additional costs that cannot be ignored: - Funding Rate: Settled every 8 hours, long-term positions may result in significant funding fee expenses. - Slippage Risk: During periods of high market volatility, placing orders may result in a significant difference between the actual execution price and the expected price. 3. Strategy Complexity: - Spot trading can use simple dollar-cost averaging strategies and staggered profit-taking methods. - Futures Trading requires more complex risk management and strategy execution capabilities. For newbies who are just getting into the crypto market, it is recommended to start with spot trading. After accumulating experience and knowledge, then consider trying futures trading. This way, you can learn market rules in a relatively safe environment and lay the foundation for potential advanced trading in the future.
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#Gate Latest Proof of Reserves Reaches 10.453 Billion Dollars# Dear friends who have just joined the Crypto Assets field, please remember one thing: it's essential to stay calm when entering this market! Futures Trading is not a tool for quick wealth, but rather a mechanism that can easily lead to losses for Newbies.
I have witnessed too many newbies trying high-leverage Futures Trading immediately after registering on the platform, often resulting in their account funds being wiped out within just a few days, losing confidence in the entire market.
Carefully read the text below, which may help you avoid unnecessary losses and make your Crypto Assets journey smoother!
Part One: Why Spot Trading is More Suitable for Newbies?
1. There is a fundamental difference in risk levels:
- Spot Trading: The worst case is losing the funds you invested, for example, if you invest 1000USDT, you could lose up to that 1000USDT.
- Futures Trading: Not only can it lead to total loss of funds, but it can also result in more serious consequences due to leverage; with 10x leverage, a mere 10% drop in coin price could cause all funds to evaporate.
2. The differences in operational complexity are significant:
- Spot Trading: Just need to master the basics of buying and selling, market chart interpretation, and transfer operations.
- Futures Trading: Requires understanding complex concepts such as leverage settings, margin calculations, liquidation mechanisms, and funding rates.
Most newbies start operating without fully understanding the features of the futures trading interface, which is a very dangerous behavior.
3. Psychological Endurance Challenge:
- The spot price fluctuations are relatively mild, giving you more time to think.
- The contract price fluctuates wildly, and dramatic ups and downs in a short period can easily lead to emotional loss of control and irrational decision-making.
Part Two: Risks that Newbies Easily Overlook in Futures Trading
1. Complex trading mechanisms:
- The difference between full position and isolated position needs to be clearly understood.
- It is easy to be forcibly liquidated if you do not understand the difference between the mark price, liquidation price, and the latest market price.
2. Additional costs that cannot be ignored:
- Funding Rate: Settled every 8 hours, long-term positions may result in significant funding fee expenses.
- Slippage Risk: During periods of high market volatility, placing orders may result in a significant difference between the actual execution price and the expected price.
3. Strategy Complexity:
- Spot trading can use simple dollar-cost averaging strategies and staggered profit-taking methods.
- Futures Trading requires more complex risk management and strategy execution capabilities.
For newbies who are just getting into the crypto market, it is recommended to start with spot trading. After accumulating experience and knowledge, then consider trying futures trading. This way, you can learn market rules in a relatively safe environment and lay the foundation for potential advanced trading in the future.