Analysis

I never understood: clearly there are smarter "leverage" options, why choose the contracts that are the easiest to Get Liquidated?

1. The "hidden pit" of contract leverage: the longer the time, the greater the loss.
The "explicit cost" of a contract is the ongoing wear of the funding rate—1% during a bad market and it can soar to 10% in a good market; the "implicit cost" is even more deadly: the higher the leverage, the exponentially increasing risk of getting liquidated.
For example: If a 1x leveraged contract is held for one year and the price does not move, the net value may only remain at 0.8; the longer the time, the more the loss resembles a "slow poison."

2. The "0-cost leverage" hidden in the market: spot and options trading.
1. Spot: Natural "Time Friend"
Staking Yield: Holding spot can be staked for rental income (annualized 30-50% extra chips), a 50% increase directly doubles, and a 20-30% drop still incurs no loss, with a fault tolerance rate far exceeding contracts. Time Value: Time acts as a "value enhancer" for spot, while it is a "bloodletting knife" for contracts – the longer you hold the latter, the more you are being "cut" by the funding rate.

2. Choose the right underlying asset: Implicit "leverage amplifier"
In a market cycle, XRP and GT can rise 10 times, while BTC and ETH may only increase by 60%. Choosing strong targets is equivalent to picking up 3-5 times leverage for free, with no capital costs, and there will be no risk of getting liquidated due to "pinning".

3. The "trap" of the majority: lacking both patience and ability.
Impatience: Always wanting to "quickly double" and refusing to wait for the "slow wealth" of spot trading.
Inability: blindly following trends to select targets, yet indulging in high leverage contracts;
Result: After being drained of dozens of points by the funding rate in a year, still fantasizing about "recovering the losses next time", ultimately getting liquidated completely.

Trading coins is a mathematical game:
Choosing the right "0-cost leverage" (spot + options), using time to exchange for space, is a smarter way to play.