I've seen many people repeatedly get liquidated in high-leverage contracts, so I want to discuss this topic. To be honest, there's nothing wrong with contracts themselves; the real issue lies in everyone's obsession with quick wealth.

Most people fall into the same trap: seeing others double their positions with leverage, they get impulsive and follow suit, only to have their accounts wiped out first. Why does this happen? I think it all starts with the hidden costs of contracts.

**The True Cost of Contract Leverage**

Do you know that the scariest thing about contracts isn't market volatility, but the time cost?

Seemingly transparent funding rates actually quietly deduct money from your account every day. When the market is bad, it might be 1%; during hot market conditions, it can spike to 10%. This isn't a one-time fee; it's a slow, grinding process over time. Plus, the higher the leverage, the exponentially greater the risk of liquidation—holding a 1x leverage for a year might reduce your net account value to just 0.8. This chronic loss is hard to notice but enough to make your wallet cry.

On the other hand, some people have already discovered smarter ways.

**Spot Trading Is a Friend of Time**

Want leverage effects but don't want to risk liquidation? Try spot trading combined with carefully selected assets.

Time is a value-adding tool for spot investors. Holding spot assets allows you to stake and earn interest—annualized returns of 30%-50% are not a dream. In comparison, in contracts, you pay funding rates daily, making time your vampire.

For example, if you're optimistic about a certain market cycle, assets like SUI and BGB might increase tenfold, while EOS and LTC only rise 60%. By researching and choosing the right assets, you're effectively gaining 3-5 times leverage for free. No capital costs, no fear of sudden liquidation.

This is the logic of smart investors: using time to buy space, rather than risking everything with high leverage.

**Why Are Most Still Getting Liquidated?**

I've summarized two fundamental reasons.

First, impatience. They always fantasize about quick doubling and refuse to wait for spot investments to gradually appreciate. Seeing others make 300% in a few months, they can't sit still.

Second, lack of ability. They blindly follow high-leverage contracts without understanding market rhythm and trends. As a result, over a year, the funding rates drain dozens of points from their capital, and they keep dreaming of turning things around with each trade, only to end up with an empty wallet.

**What to Do Next?**

To change the current situation, there are really just three things:

Targeted action—seize opportunities when they arise, don’t hesitate;

Discipline—stay calm during dips, avoid greed during rises, always keep a steady mindset;

Quick response—market opportunities are fleeting; reacting too slowly means missing out.

Don’t be fooled by high leverage and fantasies of quick riches. The truly smart approach is steady progress, letting time amplify your gains. Not living in constant fear, watching the countdown to liquidation tick away.