The first question a newbie often asks when entering the circle is not "How's the market?" but rather "How can I make the most effective use of this money quickly?"

Some people use 5,000 U for spot trading, holding it for a year; others use 5,000 U for contracts, which disappear in three days. The difference between winning and losing is not in IQ, but in strategy selection. To put it simply, the size of your principal determines which path you should choose.

**Principal under 10,000: Why can't many people withstand the torment of spot trading?**

When there is little money, the hardest part is not the losses, but the efficiency. Spot trading fluctuates a few points a day, and when calculated, it can earn a few hundred, but the time cost is terrifyingly high. Contracts are different - by capturing volatility and leveraging to amplify profits, it is indeed possible to quickly grow the principal in a short period.

But this knife must be used skillfully:
- Position must be restrained, absolutely do not go all in.
- Setting stop-loss is important; staying alive is more crucial than making quick profits.
- A sudden disaster, all the profits made before were lost, and it even cost extra.

**Principal of over 10,000: What to consider is not "gambling", but "not making mistakes"**

Once the amount of funds increases, the mindset must change. The best thing about spot trading is this: it won't suddenly collapse completely. As long as the coins are still in the wallet, the paper losses don't count as real losses.

Low-position layout, follow the big cycle, choose those mainstream coins and projects you understand, and then just endure. Many people think that the more frequent the trading, the more professional it is, but what truly tests skill is whether one can hold on.

**Final Words**

If you have a small principal, you dare to engage in contracts, but you must have discipline and stop-loss; if you have sufficient principal, honestly trade spot, and stable compound interest is the long-term winner.

The most feared situation: using a small capital with a large fund mentality in spot trading, which leads to psychological issues; or using a large capital with a gambler's mentality in contracts, resulting in a complete liquidation.

There are no absolute highs and lows, nobility or baseness; finding a rhythm that suits yourself is the key to going further in this market.