Too fast increase, need to be cautious: #风险提示 ❗

In the recent market, some currencies have risen very rapidly, especially #doge⚡ , which doubled in a single day. Although such a rapid rise is exciting, it also hides certain risks. In short, the current market needs to pay attention to the following points:

1. **The price rises too fast, and it needs to be stepped back in the short term**: The increase of many currencies is too steep, especially Dogecoin, and it is not common to double in one day. Historical experience shows that after a rapid rise, there is often a step back, and the price needs to go through a certain consolidation to consolidate the foundation.

2. **The funding rate has skyrocketed, and there is an arbitrage risk**: The funding rate in the current market has skyrocketed, and the annualized return has reached 100%. This is an obvious risk signal, indicating that there may be excessive leverage and crazy arbitrage in the market. Investors need to operate with caution to avoid being swallowed by short-term bubbles. If you are interested in arbitrage, you can refer to my top article for more details.

3. **Bull market is often accompanied by short-term correction**: Although the bull market has already started, the risk of short-term correction cannot be ignored. In order to avoid this risk, it is a rational strategy to reduce positions appropriately. Friends who want to buy at a low level, don't worry, now is not the best time, wait for a reasonable correction, and then make a layout.

In short, the current market is in an uptrend, but the risks brought by too fast rise and high leverage cannot be ignored. Reasonable control of positions, keeping calm, waiting for the market to pull back and reconfirm the upward trend is a more stable investment strategy.