The light is ahead, but the key is to understand your own rhythm.

When I first entered the crypto world, I had about $300 in hand, and my mind was full of dreams of getting rich quickly. Seeing various profit screenshots flying everywhere, I naively thought that contracts were the fast lane to wealth. But reality slapped me hard — within 72 hours, my account was wiped out.

Over the years of navigating the market, I want to say a few honest words to those newcomers who are preparing to enter with just a few hundred dollars: the problem has never been about how much capital you have, but how you treat that money.

**First Pitfall: A get-rich-quick mentality will inevitably turn you into a leek**

The most common mistake beginners make is thinking spot trading is too slow. They leverage heavily all at once, dreaming of a tenfold increase in the market. But what is the harsh truth in crypto? As long as the market fluctuates by 10%, your margin can be wiped out instantly.

This mindset will drag you into a vicious cycle of "chasing highs — adding positions — getting liquidated." Every market rise and fall tests your psychological bottom line. The final result? Most people lose to their own greed.

Remember one thing: in this market, surviving longer is much more valuable than making quick profits.

**Second Pitfall: Contracts are not a quick shortcut, they are a trap**

Many say that contracts are the only way for small funds to turn around. What does the data say? Over 90% of contract traders end up losing money. This is no secret; it’s the brutal reality.

When you leverage 10x, 20x, or even 100x, think about the consequences. A seemingly minor fluctuation can wipe out all your margin in an instant. Even trading master Gann repeatedly emphasized a principle: divide your principal into 10 parts, and never risk more than one-tenth on a single trade. This is not conservatism; it’s the wisdom to stay alive and leave the battlefield.

I have personally seen a friend lose all his savings on a contract trade, and I will never forget the look of despair on his face. The market will always exist, but once your principal is gone, everything is over.