2026-01-02 23:20:45

The bull market is here, and many people are torn between a question: should I stick to holding spot assets or try some leverage? Honestly, pure spot holding can be at a disadvantage in a bull market—watching the coins keep rising while your coin count doesn’t increase, that feeling can be quite frustrating.

Coin-margined contracts perfectly fill this gap. Why is that? Imagine you use 1 BTC as margin to open a 3x long position. When BTC rises by 10%, your contract profit is 30%, and the value of the BTC itself is also increasing. This is the brilliance of coin-margined contracts—double the gains stacking together.

Even more aggressive is capital rate arbitrage. In a bull market, positive funding rates are common. Holding a short position at this time allows you to steadily earn from coin funding payments, effectively earning for free. Plus, since everything is denominated in coins, seeing your BTC/ETH quantities grow reduces the psychological fear of price fluctuations, making it easier to withstand volatility.

How to operate? Experienced traders focus only on the top 5 mainstream coins—BTC, ETH, BNB, etc.—which have good liquidity and minimal risk of being trapped. The key is to enter in batches: when the weekly resistance level is broken, first sell 25% of your position; after a pullback confirming support, add another 25%. This way, you won’t be fully trapped, and you won’t miss the upward wave. Profit-taking should also be strategic: reduce positions at 30% profit, again at 50%, leaving the rest to ride the big trend.

Of course, not all coins are suitable for long positions. Altcoins that surge over 20% in a single day are risky despite their rapid gains. In such cases, take a contrarian approach—use small leverage (within 3x) to open short positions on mainstream coins. Pick the top 50 coins by market cap that have already tripled in value, set a 5%-8% take profit, and quickly cash out to redirect profits into mainstream coins.

The logic of a bull market is like this: mainstream coins follow the big trend, while altcoins with large volatility can be exploited for quick gains. Coin-margined contracts allow holders to participate in leverage gains without sacrificing the appreciation potential of their coins. This is the right way to operate in a bull market.

BTC-2.58%

ETH-2.86%

BNB-1.53%

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DYORMaster

· 01-05 19:52

The dual profit logic sounds good, but honestly, not many people can execute it effectively. Watching the number of coins increase is indeed satisfying, but a single correction can easily break your mindset. You still need a strong heart.

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VitaliksTwin

· 01-05 12:58

The coin-backed standard is truly awesome, much more comfortable than pure spot trading.

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WagmiOrRekt

· 01-05 11:29

Damn, the dual yield is really amazing, but I still think that mindset is the biggest pitfall. Speaking of which, the pure spot trading mindset is really tough, but opening leverage and not sleeping well isn't worth it. The coin-backed approach is quite clever; at least the increasing quantity makes me feel more comfortable psychologically. However, my friend lost money the day before yesterday due to fee rate arbitrage. It's easy to talk about but hard to do. I've tried the strategy of gradually entering mainstream coins, but I always get greedy at the take-profit point—should have sold at 30%, but I insisted on waiting for 50%. Shorting altcoins to buy back mainstream coins? Looking at those high-risk, skyrocketing assets, I still feel a bit hesitant... Honestly, coin-backed contracts are good, but the key is self-discipline and taking profits. Most people fall into the trap of greed.

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HodlAndChill

· 01-02 23:50

Coin-based standard indeed 6, I respect the logic of double leverage and double gains. Watching the increase in coin count feels really different, and my mindset has become much more stable. The key to this is to enter in batches; otherwise, going all-in in one shot can easily lead to losses. Altcoins are highly volatile, so it's best to exploit them when possible, but be careful not to get caught off guard and be harvested. Mainstream coins are fundamental; holding BTC and ETH well means you won't lose too much. Rate arbitrage is a good trick, essentially earning coin-based profits while lying down. Pure spot trading can feel a bit unethical, but in a bull market, you still need to get active. However, be cautious with 3x leverage; liquidations are not uncommon. Setting take-profit orders properly is the only way to truly make money; greed often leads to being trapped at the end. BNB has been performing quite well recently, and liquidity is also fine.

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LiquidityWizard

· 01-02 23:50

Coin-margined contracts are basically just an excuse to get people to go all-in. I've seen too many stories of people going bankrupt because of "double returns."

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GasFeeCrier

· 01-02 23:44

Coin-margined is indeed comfortable, the feeling of increasing coin count is simply unstoppable. But to be honest, I still have some reservations about funding rate arbitrage. When the positive rate is high, it often signals a top, right? Gradually entering mainstream coins is really stable, but I'm just worried about losing control—it's not uncommon for people to go all in at once. I've tried shorting altcoins before; making quick money sounds simple, but the risks are not small. A 5% take profit can easily be shaken out. Coin-margined contracts are definitely more enjoyable than spot trading, but in the end, it's usually leverage traders who end up losing. Don't get too full of yourself just yet.

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zkProofGremlin

· 01-02 23:38

Wow, the idea of coin-margined contracts is really brilliant. I never thought of double returns before. Arbitraging funding rates is a free profit, but you need to catch the bull market rhythm, or you'll risk a reverse hit. Entering mainstream coins in batches is a seasoned move, just afraid of losing control and going all in.

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