The most terrifying thing in the crypto world is not actually contract liquidations, but those operations that seem the "safest."

Last weekend, a friend called me, sounding quite dejected. He said, "I only have 15,000 left from 80,000 now. I was just doing spot trading, how did I end up losing so much?" I asked him what he was thinking at the start, and he chuckled bitterly: "When I entered the space last year, I swore I would only do spot trading and avoid leverage, thinking it was safer, right? But less than a year later, I was beaten to a pulp."

We talked for a long time, and finally, I understood where his problem was. To put it simply, it was that someone in the group shouted "Certain coin is about to take off," and he immediately transferred several ten-thousand to follow; then someone said "It's a bottom-fishing opportunity," and he added a few more ten-thousand. By half a year later, his account had shrunk by over 80%. Such incidents are almost common in the spot trading circle.

**Spot Trading Is Not the Same as a Safe Deposit Box**

Many people have a misconception that spot trading has no leverage and won't get liquidated, so it's very safe. This idea is completely wrong.

The logic of spot trading is actually "using time to exchange for space," but the problem is—if you choose the wrong coin or enter at the wrong time from the start, then time won't give you a chance to turn things around; it will only magnify your losses little by little. Bitcoin dropping 20% in a day is normal, and altcoins being halved is also common. If you hold all your funds in a small coin, it could drop to 99% or even go to zero directly. Spot trading indeed won't get liquidated, but it can go to zero—that's the real despair.

**The Difference Between Contracts and Spot Is Not What You Think**

Contracts have stop-loss mechanisms, and if liquidated, you can still preserve some principal. What about spot? You just keep losing, and only when the price rises will you break even. If luck isn't on your side, you might have to wait years. Some coins might never rise again.

So now, many people are beginning to realize that instead of holding onto spot and praying for a rebound, it's better to think about how to survive smarter in this round of the market. The topic of privacy protection in the market is also gaining attention—because more and more people understand that in the crypto space, good risk management and information security are equally important.

**How to Avoid Falling into the Pit**

First, don’t follow the crowd. No matter how enthusiastic the group is, do your own calculations.

Second, diversify your purchases. Don’t go all-in at once; buy in several rounds and across different coins. This way, even if the bear market comes, you won’t be wiped out.

Third, set a psychological bottom line. If the price drops to your lowest acceptable point, cut your losses decisively—don’t wait for a miracle.

Fourth, learn to analyze fundamentals. Not all coins are worth holding long-term; some projects have no future at all, and waiting is pointless.

The crypto world is never short of stories; what’s lacking is clarity. Whether it’s spot or contracts, fundamentally, it’s all a game of strategy. Instead of dreaming of guaranteed profits, learn how to survive longer—this is the first lesson in playing with coins.