Will the rise and fall of the cryptocurrency circle really scare people to death?
Yes, take the most classic example of Luna. You have 10,000 Luna. When you went to bed yesterday, it was worth 1 million U. When you woke up, it became 700,000 U. You said that I have been in the cryptocurrency circle for so long, and it only retreated by 30%, and ust only decoupled by 10%. I believe in DoKwon, so I went to bed again with confidence.
The next day, I woke up and it became 10,000 U. At this time, you think that it has fallen by 99%, and it should have fallen to the bottom. I will buy it now and it will rise to 10U, which is ten times. So you sell your pot and get 200,000 U to buy 200,000 Luna. At this time, you can't sleep. You keep staring at it and hope it can go back up, but you can only watch the price go from 1 to 0.1 and then to 0.000001 and finally be delisted.
In the end, in three days, your 1.2 million U assets shrank to the money for a breakfast. You completely collapsed.
In addition to Luna, the cryptocurrency market is very different from the traditional financial market.
1. 24/7,
2. No price limits,
3. Very low entry threshold,
4. Many people abuse leverage,
5. The rise and fall of altcoins are endless.
Especially when the third, fourth and fifth points are combined, it is normal to get rich overnight and blow up overnight. Be careful with leverage, everyone. You think your five times leverage is already very low, but you don’t know that there are days every year when the fluctuation exceeds 20%. Because of leverage, the more it falls, the more it cannot stop, and finally leads to a series of blow-ups. Why can ETH reach more than 800 in this bear market? Isn’t it because the liquidation price on the chain is clear, and there is money to pick up cheap corpses?
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