$ETH Contract leverage is a killer for beginners. Do you know how deep this trap is?

The most terrifying thing in the crypto world has never been project scams, but the seemingly "stable" contract leverage. Many newcomers see 5x, 10x and think it's rock solid, as long as it's not crazy leverage like 50x, it should be fine, right? Reality gives them a loud slap. A 20% daily fluctuation in Bitcoin? That's perfectly normal in crypto. Altcoins are even more outrageous, with halving and halving happening every day. You think 5x leverage is safe, but one pin can wipe out your account, and you might even owe money to the exchange.

I've seen countless routines that are all the same: a few small wins at the start, then swelling with pride, thinking they've discovered a guaranteed winning strategy. The next step is to add positions and leverage. Then, when a reverse trend hits, they get liquidated. The essence of contract trading is basically gambling, and the understanding of the market by institutions and big players is far beyond what retail investors can learn. Beginners want to make quick money, which is understandable, but to achieve that through contracts? That’s just speeding towards bankruptcy. Playing spot trading steadily is the right way; don’t pin your dreams of overnight riches on leverage.

The true face of altcoins: 99% end up empty

Veterans in the crypto space all know a saying: "BTC might not make you a millionaire, but at least it won't wipe out your capital." But what about altcoins? Count them up, 99% of projects ultimately end in one word—zero.

Beginners often get scared by a phenomenon: a small coin suddenly surges 100 times! Seeing others make money, FOMO kicks in, and they rush in without hesitation. By the time they realize it, they are the last bagholder in this rally. You think you're an early discoverer, but in reality, you're just the last relay runner. The only thing waiting for you is being trapped and long-term losses.

So how should beginners allocate their assets? It’s actually very simple; these three types of coins are worth paying attention to:

**BTC** — The gold standard of crypto, with the strongest resistance to drops, and a guaranteed rise in a bull market
**ETH** — The backbone of the entire blockchain ecosystem, with long-term value support
**BNB** — As the native token of a major exchange, backed by a vast trading network and application ecosystem

The remaining over 9000 coins? 99% are garbage, don’t touch them. Instead of wasting energy researching these small coins, it’s better to focus on understanding the trends of major coins.

Zero-sum game: the money you make is someone else’s loss

Why does that famous investor dislike Bitcoin? It’s simple—because unlike stocks of listed companies, which pay dividends to shareholders, Bitcoin’s value is entirely based on a hypothesis: believing someone will buy your coins at a higher price.

This determines that the crypto market is a pure zero-sum game. Your gains come from others’ losses, without exception. Institutions, big players, and project teams are all carefully strategizing, and those who get harvested are often retail investors. They accumulate chips in places you can't see, then choose the perfect moment—through price pumps, dumps, positive or negative news—to sweep all the retail investors’ money.

Many hope that "holding long-term will make money," but this idea often doesn’t work in crypto. You need to learn to judge the market’s big cycles—be patient during bear markets to accumulate, and decisively exit during bull markets. This isn’t indifference; it’s survival. Understanding the market’s cyclicality helps you avoid those seemingly promising but actually trap-filled positions.