The bull market is here, and many people are torn between a question: should I stick to holding spot assets or try some leverage? Honestly, pure spot holding can be at a disadvantage in a bull market—watching the coins keep rising while your coin count doesn’t increase, that feeling can be quite frustrating.

Coin-margined contracts perfectly fill this gap. Why is that? Imagine you use 1 BTC as margin to open a 3x long position. When BTC rises by 10%, your contract profit is 30%, and the value of the BTC itself is also increasing. This is the brilliance of coin-margined contracts—double the gains stacking together.

Even more aggressive is capital rate arbitrage. In a bull market, positive funding rates are common. Holding a short position at this time allows you to steadily earn from coin funding payments, effectively earning for free. Plus, since everything is denominated in coins, seeing your BTC/ETH quantities grow reduces the psychological fear of price fluctuations, making it easier to withstand volatility.

How to operate? Experienced traders focus only on the top 5 mainstream coins—BTC, ETH, BNB, etc.—which have good liquidity and minimal risk of being trapped. The key is to enter in batches: when the weekly resistance level is broken, first sell 25% of your position; after a pullback confirming support, add another 25%. This way, you won’t be fully trapped, and you won’t miss the upward wave. Profit-taking should also be strategic: reduce positions at 30% profit, again at 50%, leaving the rest to ride the big trend.

Of course, not all coins are suitable for long positions. Altcoins that surge over 20% in a single day are risky despite their rapid gains. In such cases, take a contrarian approach—use small leverage (within 3x) to open short positions on mainstream coins. Pick the top 50 coins by market cap that have already tripled in value, set a 5%-8% take profit, and quickly cash out to redirect profits into mainstream coins.

The logic of a bull market is like this: mainstream coins follow the big trend, while altcoins with large volatility can be exploited for quick gains. Coin-margined contracts allow holders to participate in leverage gains without sacrificing the appreciation potential of their coins. This is the right way to operate in a bull market.