Why do so many people like to do contracts in the currency circle?

Let me talk about why we don’t do contracts. Cryptocurrency exchanges are market makers. Doing perpetual contracts is equivalent to betting with exchanges. The exchange will make precise pins according to the distribution of perpetual contract chips to blow up the counterparty at a fixed point. The main reason for the surge in Bitcoin in the past two days is that there are a lot of 20 to 10 times the perpetual contract short chips piled up near 50,000, and then the exchange launched a market to pull them up. At $64,000, these accumulated short chips were basically blown up, and then the long contracts chasing more were blown up again, and then the market returned to normal.

Those who shorted around $50,000 are actually veterans. They believe that there will be a wash before the mining income is halved, and there will be a 10% plunge. I thought so at first, but there was a problem with the ETF. The on-chain data clearly shows that after the ETF bought Bitcoin, it withdrew the currency from the exchange, causing the exchange's Bitcoin spot volume to drop sharply, that is, Bitcoin's liquidity was artificially tightened, which made it impossible to wash the market. In the past, the wash was to suppress the price of the currency, and the exchange took advantage of the low price to absorb the chips. Now the wash chips are bought by the ETF at a low price, and transferred from the exchange wallet to the ETF wallet. The risk of washing the market is too great, and you can only insert the contract.

Therefore, it is not recommended to do contracts for Bitcoin. It is best to do spot trading. The above is for reference only! #BTC #ETH