# Don't get stuck in contract liquidation anymore! Smart leverage strategies for stable profits without stepping on landmines
Clearly, there are smarter leverage ideas. Why do people insist on jumping into the easy-to-liquidate contract trap?
The contract itself is not the problem; the “get-rich-quick trap” in people's hearts is the key—watching others leverage and double their profits leads to wallets being emptied.
## 1. The “invisible trap” of contract leverage
The longer the time, the harsher the loss. Contracts have explicit funding rates, which can be 1% during bad markets and soar to 10% during good ones, quietly draining funds every day; even scarier is the hidden risk: the higher the leverage, the exponentially increasing probability of liquidation.
A practical example: Holding at 1x leverage for a year could leave you with a net worth of only 0.8, like a chronic poison—unnoticed, but your wallet shrinks.
## 2. “Zero-cost leverage” in the market: Spot + Selecting targets
Smart people have already changed their strategies to something easier and safer:
- Spot = a natural friend of time: staking can earn rent, with an annualized extra yield of 30%-50%; a 50% increase doubles your investment, and even a 20%-30% drop won't lead to losses, with a much higher margin of error compared to contracts. Time acts as a “value enhancer” for spots but is a “blood-draining knife” for contracts.
- Choosing the right targets = an amplifier of invisible leverage: In the same market cycle, SUI and BGB can rise 10 times, while EOS and LTC may only rise 60%. Choosing the right targets is like picking up 3-5 times leverage for free, with no funding costs and no risk of liquidation from sudden drops.
Smart people are trading time for space, rather than betting on high leverage.
## 3. The core pitfalls leading to liquidation for most
Why do some people keep failing in contracts? It's usually for two reasons:
- Lack of patience: Always wanting quick doubles, refusing to wait for spots to appreciate slowly;
- Lack of ability: Blindly following high leverage without understanding market patterns.
What’s the result? After a year, the funding rates have drained dozens of points, while still hoping for a comeback, leaving wallets completely empty.
In the next wave of positioning, levels, timing, and positions are all clear! Stick with me for just three things:
Precise targeting: bullets hit the target every time;
Strict discipline: not panicking when prices drop, not being greedy when they rise;
Lightning execution: opportunities wait for no one; hesitation is a mistake.
Focus on BTC, ETH, SOL, BNB, and other core cryptocurrencies, providing 3-5 clear spot and contract strategies daily.
Here, you can achieve: Say goodbye to losses —> Keep up with the professional rhythm —> Establish your own profit system as a three-in-one, with none being dispensable.
