My friend looked at his account balance and sighed: "I wish I hadn't entered the contract. I only had $800 for five days and it's gone. I don't understand why it's so easy to get liquidated." Hearing him say that, my mind instantly flashed back to my own awkwardness when I first entered the scene — back then, I was full of thoughts of "quickly doubling my money," but ended up losing even more than he did.

My story is even more heartbreaking. At that time, I was hyped up by others claiming that contracts could "double within a day." Watching spot trading move so slowly like a snail, I couldn't resist holding onto $600 and immediately opened a 10x leverage position on BTC. And what happened? On the first day, I ran straight into volatility — BTC dropped 8%, and a liquidation warning flashed. In a moment of impulsiveness, I decided to add more to hold the position, thinking I could stabilize the situation — but in the end, I was lucky to get out with just $200 left, crawling out of the position. Looking back now, I realize how foolish I was.

Only after falling many times did I understand that choosing between spot and contracts isn't about "which makes money faster," but about understanding what level of volatility you can handle. Over these years, I’ve learned a few key lessons, which have also helped many beginners like my friend.

**First: Watch Your Principal.** If you have less than $1500, I sincerely recommend sticking to spot trading. My friend insisted on jumping into contracts with only $800. With 10x leverage, a 10% drop in BTC would mean liquidation. Seeing his account turn green, he kept adding to his position, but ended up wiping out his principal. But spot trading is different — the coins are in your hands, and even if they drop 20%, you can wait for a rebound. Not selling means you won't lose everything.

**Second: Watch Your Mindset.** The volatility in contracts can scare beginners to death. A 5% drop in ETH spot is one thing, but with 10x leverage, that’s a 50% loss — a number that can instantly terrify someone. I’ve experienced ETH dropping 15% in spot, and I didn’t panic — I just waited. Half a month later, it rebounded as usual.

**Third: Clarify Your Goals.** If you want to make quick money, you need to be mentally prepared for the possibility of losing your entire principal. My friend initially aimed to make $300 in a week, and that’s what drew him into contracts; but spot trading is about "long-term gains." Last year, I held SOL spot for four months and gained 40%. It was slow, but I didn’t have to worry about liquidation. If you want steady progress, spot trading is the first lesson for beginners.