Why do people rush into the most easily liquidated contracts when there's a smarter "leveraged play"?

The contract itself isn't the problem; it's the mindset that's key. Most people are trapped in the "get rich quick trap"—seeing others double their money with leverage and jumping on the bandwagon, but what actually happens? Often, their wallets are drained before they realize it.

1. The "obvious pitfall" of contract leverage: chronic bloodletting + liquidation risk

The longer you hold a contract, the more devastating the loss.

It has explicit costs—funding rates, quietly cutting into your funds daily: during bad market conditions, it could be 1% per day, and in booming times, it could skyrocket to 10%. Little by little, it adds up to a big hole.

Even scarier are the implicit costs: the higher the leverage, the exponentially greater the liquidation risk.

For a concrete example: holding a 1x leverage for a year, even if the price doesn't move, the net value might only be 0.8. It's like chronic poison; you don't notice until your wallet has been slowly drained.

2. The "zero-cost leverage" in the market: spot + choosing the right target

Smart people never gamble on contracts but use a more relaxed method: building a foundation with spot and selecting the right targets, which is both safe and enhances returns.

Spot = a natural friend of time

Spot doesn't incur funding rates; instead, it can be staked for "rent collection," securing an additional 30%-50% annual yield.

A 50% increase directly doubles your investment, and even if it drops 20%-30%, you won't incur losses, with a margin of error much higher than that of contracts.

For spot, time is a "value-adding agent"; for contracts, time is a "bloodletting knife"—don't underestimate the daily funding rates; the long-term losses are scarier than you think.

Choosing the right target = implicit leverage amplifier

In the same market cycle, SUI and BGB can increase 10 times, while EOS and LTC might only go up 60%.

Choosing quality targets is like picking up 3-5 times leverage for free, with no funding costs and no risk of being liquidated by sudden market spikes.

Smart people exchange time for space, rather than relying on high leverage to gamble on their fate.

3. The root cause of most people's liquidations: lack of patience + lack of ability

Why do most people keep failing with contracts?

- Lack of patience: always wanting to double their money in a few days, unwilling to wait for spot investments to gradually appreciate, focused only on "getting rich quickly";

- Lack of ability: blindly following high-leverage contracts without understanding market patterns or risk boundaries, purely gambling on luck.