The method of novice contract trading is: contract trading is derivative trading, which is based on the standardized products of digital currency and developed by the currency circle with reference to traditional futures. This is an agreement covering the price and trading objectives. Different from traditional futures, it is divided into fixed-term contracts with delivery date and perpetual contracts without delivery date. The term contract is the compulsory delivery and liquidation when the agreed time expires, mainly for the protective hedging function of spot risk exposure; However, the permanent contract has no expiration and settlement date, which is similar to the spot market of margin. Using its leverage, we can find out the future price of digital currency and get high profits. The essence of contract trading is that because the price fluctuation in digital currency is greater than that in the traditional market, contracts, like traditional futures, have the function of hedging risks and avoiding the sharp depreciation of spot assets from the moment they are born, so it is a hedging function at first. Secondly, due to the inherent leverage function of contract design, it also has a small and wide speculative function. More participants use contracts as leverage to realize the tool of small funds to achieve large funds, so it is also speculative.