Leverage trading is something many people are using, but few truly understand it. I see that quite a few partners are still confused when trading, especially the difference between spot leverage and contract leverage, which is even more unclear. Today, I’ll explain it to everyone in the simplest way. First, let’s talk about what leverage is. Simply put, leverage is an amplifier. If you only have 100 dollars but want to buy 1,000 dollars worth of coins, leverage can help you achieve that. A 10x leverage means exactly that. But here’s a key point — the trading modes in the crypto space are different; spot and contract trading are completely different, and so are the risks. Spot leverage is basically “borrowing money to buy coins.” You have 100 USDT, and with 5x leverage, the platform loans you 400 USDT, so you have 500 USDT to buy coins. After purchasing, if the price rises by 10%, you can sell for a 50 USDT profit. After deducting interest (usually very low), it’s basically a net profit. Sounds good, but there’s a trap — if the coin’s price drops too sharply, you need to “add funds,” meaning you have to top up your account; otherwise, the platform will forcibly close your position, selling all your coins to automatically repay the debt. This isn’t a liquidation of your coins; your coins are still real, but the platform forcibly sells them. For example, if you use 100 USDT with 5x leverage to buy spot BTC, it’s equivalent to holding 500 dollars worth of BTC, but you owe the platform 400 dollars. If BTC drops 20%, your 100 dollars is wiped out. At this point, if you don’t add money, the platform will forcibly close your position, selling all your BTC to repay the debt. Simply put, when the market drops, you need to add funds to hold on, or you’ll be forced out by the platform. The logic of debt repayment is also simple. When you sell spot, you first pay back the borrowed money, then the interest, and whatever remains is your profit or loss. For example, if you buy 500 dollars worth of BTC with 100 dollars at 5x leverage, and it rises to 600 dollars, you need to pay back the platform’s 400 dollars plus interest first, and what’s left is your profit. But contract leverage is completely different. It’s a contract you sign with the platform, with 100 dollars as your margin, and the platform opens a 10x leverage position, creating a 1,000-dollar contract position. It looks similar to spot leverage, but the risk is much higher. If you bet against the contract’s direction and lose 10%, you lose all 100 dollars — this is called liquidation. Spot leverage can be forcibly closed by the platform, but you still have a chance to add funds; with contract leverage, if you get liquidated, those 100 dollars are really “lost” to the platform, with no way to recover. In short, contract leverage is a more aggressive way to trade. It can quickly amplify your gains but also quickly wipe out your principal. Spot leverage is relatively milder because you’re buying real coins that can be held long-term, waiting for a rebound. But whether it’s spot or contract leverage, increasing leverage also increases risk. One can wipe out their principal, the other can be liquidated instantly. So, the most important thing is risk control. Whether you choose spot leverage or contract leverage, you must first understand how much risk you can bear and find a trading mode that suits you. Hope everyone’s spot trades go up, and whether you’re long or short on contracts, you make money together!

📰 【Tether issues an additional 1 billion USDT again, a total of 5 billion USDT issued in the past two weeks】 BlockBeats news, May 4th, according to lookonchain monitoring, Tether minted another 1 billion USDT on the TRON network an hour ago. In the past two weeks, Tether has issued a total of 5 billion USDT. Damn it! Tether’s dog whale is printing money again! 5 billion USDT in two weeks, are they planning to directly smash through the market with cash? One issuance isn’t enough, so they come back for a second round. WDNMD, do they really think retail investors’ money grows on trees? This move clearly looks like the dog whale is adding bullets crazily before a shakeout, about to launch a violent rally in the market. Family, don’t panic, follow Soros brother and charge ahead. Once this printing press starts, $BTC and $ETH will find it hard to stay grounded!

I recently saw a piece of news and it reminded me of Wu Jihan. It’s a little ironic. Back in 2017, eight years ago, he dumped all of his and his company’s tens of thousands of bitcoins at around $3,800 to $4,000. The reason: All in BCH. He wanted Bitcoin Cash to replace BTC. As everyone now knows, BCH didn’t manage to take over—instead, it got trapped in a fork war. Bitmain was dragged into the abyss, and he himself was also forced out in a humiliating way, becoming the biggest joke of that bear market. Eight years later, history has repeated itself. This February, BitDeer under Wu Jihan issued a holdings announcement, saying that as of February 20, the company’s self-held bitcoins had been completely zeroed out. 943.1 reserve coins plus the 189.8 coins newly mined that week—one-click liquidation at the $68,000 level. Many people in the circle’s first reaction was: Here we go again? Wu Jihan replied on X that having zero holdings now doesn’t mean it will always be like this in the future. He said that, but the market doesn’t talk about feelings. The moment the news came out, panic spread immediately. Retail investors were stunned, big players panicked, and even inside the mining industry there was an uproar. Some people explained that he was selling in order to buy land and expand the mining farms, not because he was bearish. But think about it: someone who translated the Bitcoin white paper into Chinese; someone who has been betting on “Hodl” with 15,000 BTC since 2012; someone who once loudly shouted that BCH is the real Bitcoin—now he has sold his last remaining bitcoin. If that isn’t a collapse of faith, what is? Logically, it makes sense—this is financial maneuvering, an adjustment to asset allocation. But put it at this particular moment: $68,000, clearing the position, zeroing everything out, even leaving nothing of the 189.8 coins mined this week. The signal it releases is more direct than any research report. What’s the more practical problem? On the market, among 22 mainstream mining rigs, 9 have already reached their shutdown prices. At these prices, mining doesn’t even cover electricity costs. Miners either shut down or sell coins. And selling coins also further pushes the price down, creating a negative feedback loop. When leading mining companies wipe their Bitcoin holdings down to zero, it means mining capital is withdrawing from the crypto world. Miners are the backbone of Bitcoin. If the backbone is running away, how are retail investors supposed to hold on? When the people who understand Bitcoin best start stepping away, the market really is at a delicate turning point. I’m not trying to spread bearishness, and I’m not calling for bullishness. I just feel that Wu Jihan’s two rounds of liquidation are too much like one person’s destiny. He’s always betting big on the trend—when he wins, he gets to be glorified; when he loses, he becomes a punchline. In 2017 he lost. In 2026, this round isn’t finished yet—but the market’s panic is already written into the candlestick chart. Right now, BTC is around $79,900, up 1.67% over the past 24 hours. At the end of the day, the crypto world has never lacked stories; what it lacks are people who can actually learn something from those stories. My personal take is: when top players start clearing their positions, don’t rush to insult them, and don’t rush to copy them either. First figure out one thing—are the coins in your hands the vessel of your own belief, or just fuel in someone else’s story? This round, the story isn’t over, but the signals are already clear enough.