Many beginners enter the crypto world through spot trading, and gradually people around them start discussing contracts. The first time they hear someone make $10,000 in one night with a $100 capital, the impact is real — it’s almost like a shortcut to financial freedom. But after seeing more cases of liquidation and paying tuition here, they truly understand: the magic of contracts ultimately amplifies human greed and luck.

The most attractive part of leverage trading is that phrase "using a small amount to control a large position." Imagine using $1,000 with 10x leverage to go long on SOL; as long as the price rises by 10%, the principal doubles. If you’re bolder, with 50x or 100x leverage, making dozens of times return in a single day is not impossible. Such "overnight riches" have indeed happened — someone turned $500 into $125,000 using 100x leverage.

The problem is, the risks behind this are equally magnified. In May this year, Bitcoin plummeted 30% in a single day, and a trader with 3 million in capital trying to bottom fish had their account wiped out in an hour. In the world of high leverage, a 1% fluctuation is enough to wipe out your account. But why do people keep rushing in? Because human nature always finds it easier to believe "luck will be on my side."

Even crazier than the stock market is that contracts allow for both long and short trading. You can profit when prices fall too. In March, someone seized the opportunity when Bitcoin dropped from $74,000, shorting for a week and earning 700,000 RMB. Plus, with 24/7 trading, the feeling of "there’s always a chance" most easily drags traders into the gambler’s pit.