I’m rewriting this post for the second time because the first one got erased from my phone before I could publish it. It's really frustrating to start all over, especially since I didn’t memorize the content. I was just writing as the ideas flowed naturally.
The post is about the risks associated with futures trading and other forms of cryptocurrency trading. Futures trading is highly risky—it can make someone wealthy in minutes but also lead to significant losses just as quickly. One advantage of futures trading is that it doesn’t require a large amount of capital to start. With as little as $10, you can begin. However, if you’re not careful, that $10 can vanish in seconds, especially if you use high leverage.
Leverage is what sets futures trading apart from day trading or spot trading. It allows you to trade with a small amount of money while leveraging larger amounts to potentially make significant profits. This isn’t possible with spot trading.
Spot trading is more suited for people aiming for long-term gains. With spot trading, small investments rarely yield massive profits because it’s uncommon for a coin to increase by 100%, especially stablecoins. Only highly volatile coins, like meme coins, might offer such returns, but they’re also incredibly risky compared to stablecoins or established cryptocurrencies like BTC, Solana, and Ethereum
I’ve been trading for a couple of years, and my experience has shown me that futures trading can humble anyone, no matter how much experience they have. The market can change drastically in seconds, and that’s the most disheartening part.
Recently, I lost a significant amount of money in futures trading, something I didn’t expect despite all my precautions. I abandoned my trading principles when the market didn’t go in my favour. I allowed my emotions to take over, which cost me dearly. It wasn’t just my initial capital; even the profits I had accumulated were wiped out, leaving only a small amount in my wallet.
If I were to advise someone on which type of trading to choose, I’d recommend spot trading. It’s less risky, though it requires a lot more capital if you want to make meaningful profits in the short term.