There's a popular saying in this circle: "Spot trading only allows you to drink soup; futures contracts are what let you eat meat."

Recent market movements have given the best footnote to this saying. BTC quickly surged from 89,000 to 91,000, with long traders watching their account assets double, while those who missed out were left clutching their thighs in regret. So the question arises—thousands of newcomers holding 1000 USDT leverage 100x, with only one thought in mind: tomorrow their account will turn into 100,000.

But do you really understand what you're doing?

**The Fundamental Difference Between Spot and Futures**

Buying spot is like shopping at a vegetable market. You spend money and buy something; it truly belongs to you. Storing it in the fridge and waiting—even if the price halves—the item is still there. When you want to sell, you can sell. At worst, you just have a paper loss, and your principal remains safely in place.

Buying futures is completely different. You don't need to actually own anything; you're just betting—betting on the price movement in the next second, minute, or hour. If it goes up, you profit; if it goes down, you lose. That’s the essence.

Sounds simple? But there's a deadly trap called "liquidation."

In the spot world, prices can drop to a dollar, but your principal still exists. But futures are different—they have an invisible dead line. Once the price touches this line—corresponding to your leverage and opening price—your account is wiped out. Not just floating loss, but actual zeroing out. This is called liquidation.

**Leverage: Angel or Devil?**

At this point, we must talk about leverage. This thing is both the most tempting and the most dangerous weapon in futures trading.

Leverage is like a magnifying glass. Using 10x leverage, your gains and losses are amplified tenfold; using 100x, it's a hundred times. Sounds exciting, but reality is often brutal.

Suppose you open a 100x long position with 1000 USDT, controlling a position of 100,000 USDT theoretically. If BTC rises by 1%, you earn 1000. But if it drops by 1%, your 1000 principal is gone—liquidated immediately.

And a 1% market move? That can happen in minutes. Sometimes even seconds.

**Why Do Newcomers Always Lose?**

From a psychological perspective, the thrill of making double the profit can't compare to the pain of losing double. This is called "loss aversion." Futures trading amplifies this human weakness infinitely.

Watching others eat meat, your mindset collapses. You rush in with high leverage, hoping to turn things around, but a quick correction wipes your account clean. Stories like this happen every day.

Another issue: most newcomers have no concept of risk management. They don't set stop-losses, clinging to the illusion that "it will bounce back." But the market is merciless. They get swept out. There's a saying: "One second you're dreaming, the next second you're liquidated."

**Should You Trade Futures?**

It's not that futures are inherently evil. Professional traders profit from futures, and institutions hedge risks with them. The problem is that most retail traders simply lack the ability.

You need sufficient risk tolerance, a clear trading plan, strict discipline to execute stop-losses, and enough market knowledge. Missing any of these can lead to liquidation.

The simplest advice is: if you're not absolutely confident in your risk management and technical analysis, don't touch futures. Or if you do, start with the lowest leverage, use spare money to learn. Don't gamble with your living expenses.

That saying in the circle is right—futures can indeed let you eat meat. But only if you survive long enough to leave the casino.