Don't be fooled by "contract wealth" anymore. Newbies in contracts, 99% end up losing everything.
In 2026, many newbies are still being misled by the rhetoric of "contract wealth", thinking they can quickly double their investments and achieve financial freedom through contracts. As a result, they dive in headfirst, and within a month, they lose all their principal, even going into debt. In reality, contracts are not something newbies should touch; they are not tools for getting rich but rather a fast track to bankruptcy. Today, I will uncover the truth about contracts, so newbies, after reading this, never touch contracts again!
First, the essence of contracts is "leverage speculation". It amplifies not only profits but also risks. Contracts can leverage 10 times, 20 times, or even 100 times. It seems like you can earn big money with a small principal, but as soon as the market fluctuates slightly in the opposite direction, you can get liquidated, and your principal will drop to zero instantly. Newbies lack sufficient trading experience, cannot read the market, and do not know how to set stop-losses. Once they leverage, there is almost no chance of turning things around. Even if you make a profit occasionally, you will eventually lose all your profits and even your principal due to one mistake.
Secondly, the contract market is full of "scissors", and newbies are the chives waiting to be cut. In the contract market, there are big players and professional traders who have mature trading systems and ample funds and can manipulate short-term market conditions. Newbies have none of that; they can only rely on luck to guess price movements. To put it bluntly, it's a gamble against professional players, and there is no chance of winning. Many newbies think they can win by luck; in fact, it's just bait set by the big players. Once you invest more funds, you will be harvested instantly.
Finally, contracts can destroy your mindset and trap you in a vicious cycle. People who play contracts tend to become extremely restless; when they make money, they want to earn more, and when they lose, they want to recover their losses, constantly leveraging and trading frequently. In the end, they lose more and more, even borrowing money to play contracts, falling into a debt pit. Many people lose their savings and break their families because of playing contracts, resulting in a net loss.
For newbies, the best choice is to stay away from contracts, focus only on spot trading, try small positions, and hold quality assets for the long term. Although you can't get rich overnight, you can earn steadily, protect your principal, and survive in the cryptocurrency space for the long haul. $ETH