# Don't be harvested by contracts anymore! This "0-cost leverage" is the smart person's way to make money.

I've always been puzzled: clearly, there are safer "money-making leverages," so why do most people dive headfirst into the vortex of contract liquidation?

The pitfalls of contract leverage are glaringly obvious; it's just that many people are blinded by the fantasy of "quick doubling."

The explicit cost is the continuous erosion of funding rates—when the market is calm, it can swallow 1% of your net worth each month; when the market is hot, the loss can spike directly to 10%; the hidden risks are even more deadly: the higher the leverage, the risk of liquidation does not increase linearly, but instead skyrockets exponentially. It's like holding a contract with 1x leverage for a year; even if the price stays completely still, your net worth might only remain at 0.8. Time becomes a slow poison, gradually squeezing your principal.

In fact, the market has long hidden "0-cost leverage," but no one is willing to take the time to discover it:

That is spot trading + selective investment. Spot trading is inherently a friend of time, and holding spot assets can also pledge for "rental income," easily obtaining an additional 30%-50% annualized returns. When the market rises by 50%, your principal doubles directly; even if it falls by 20%-30%, you won’t incur direct losses, with a margin of error that leaves contracts far behind. For spot trading, time is a value-added agent; but for contracts, time is a bloodsucking knife—holding for one more day means being cut by the funding rate once more.

Choosing the right targets is more like adding hidden leverage to your returns.

In a round of market conditions, SUI and BGB can increase by 10 times, while EOS and LTC might only increase by 60%. Picking strong targets is equivalent to picking up 3-5 times leverage for free, with no funding costs, and you won’t be forced into liquidation by "flash crash" market conditions.

However, most people insist on jumping into traps:

They lack the patience to wait for the "slow wealth" of spot trading and always think about doubling their money overnight through contracts; they lack the ability to choose the right targets, yet are addicted to the thrill of high leverage in contracts. What’s the result? Over the course of a year, they lose dozens of points to funding rates while clinging to the fantasy of "the next round to recover losses," ultimately being washed out by the market.

Trading cryptocurrencies is essentially a mathematical game; only by clearly calculating costs and risks can one laugh till the end.

Give up the high-risk temptation of contracts, and choose "spot trading + selective investment" as your 0-cost leverage. Using time to exchange for space is the truly smart way to play.