Why is contract trading so attractive, even though people know the risks and still keep pouring in? This question deserves in-depth reflection.

**The Essence of Temptation: The Magic of Leverage**

In cryptocurrency trading, the core appeal of contracts boils down to two words—leverage. With just a small margin, you can control a trading volume far exceeding your principal. This mechanism of leveraging small capital for big gains inherently has a strong allure. When account funds grow rapidly during market fluctuations, the thrill of numerical jumps can overshadow potential risks.

More importantly, compared to traditional financial markets, the cryptocurrency market offers more trading opportunities. When stocks decline, you can only passively endure the loss, but in the contract market, short selling is available—declining markets can also generate profits. The market fluctuates daily, and each fluctuation can be seen as a window for profit. Coupled with the frequent flow of information in the crypto space—positive and negative news bombarding traders—it's easy to develop an illusion of "I can seize this opportunity."

**Psychological Traps: Herd Mentality and Luck**

Even more deadly is the spread of success stories on social media. Screenshots claiming "Account doubled in three days" or "A single trade paid for a house down payment" are everywhere, seemingly proving the possibility of getting rich quickly through contracts. The focus on these success stories creates a psychological trap of "If others can do it, why can't I?" Few people think deeply about survivor bias behind these cases or the real struggles of those who get liquidated.

Herd mentality amplifies this effect. When everyone around talks about contract profits, maintaining rationality becomes awkward. Those entering with a lucky mindset often selectively ignore risk warnings, only seeing the possibility of making money.

**The Harsh Reality: The Double-Edged Sword of High Leverage**

But high leverage is indeed a double-edged sword. When making profits, it’s glorious; when losing money, it can wipe you out instantly. The crypto market is highly volatile, with price swings capable of hitting stop-loss levels in a short time. Due to the lack of effective regulation, liquidity risks and flash crashes are real threats. Many people not only lose their principal but also fall into debt.

This explains why, despite knowing the high risks of contracts, people still rush in. Essentially, it’s a psychological game—rational warnings are often drowned out by greed and excitement.

**Rational Advice**

For most retail investors, participating in contract trading without systematic trading skills and a comprehensive risk management system is indeed too risky. If you insist on trying, the basic principles should be: do not use essential living funds, strictly control individual position sizes, set stop-loss levels and stick to them, and never go all-in or gamble everything. Contracts can be a tool for investment, but they should not become a gambling arena. Calmly assess your risk tolerance and knowledge reserves—perhaps for many, staying away from contracts is the most rational choice.