"It's all about the heartbeat!" This is the catchphrase of many cryptocurrency contract players.
On May 17, Li Xin (pseudonym) slept for only three hours. Although he was bleary-eyed, he still opened his eyes and immediately opened the contract transaction on the exchange. However, he never expected that his expectant mood would suddenly plummet to the bottom: "It's over, my account has been liquidated!"
Li Xin is a young man who graduated just three years ago and is also a speculator who has just entered the cryptocurrency circle. Li Xin said that he had always sneered at virtual currencies before, but recently he found that more and more friends around him joined the cryptocurrency trading team. After hearing that more and more people achieved "wealth appreciation" through cryptocurrency trading, he was tempted. Especially recently, Dogecoin, Shitcoin and other currencies have become popular. Li Xin took advantage of the market boom to join the cryptocurrency trading team. With the help of his friends, he began to learn how to recharge, buy coins and even contract transactions.
"I couldn't understand many of the terms for operation, and I didn't know how to pronounce many currencies. I studied them over and over again for an entire afternoon and barely learned the operation process." He bought a small amount of Ethereum tentatively for the first time, but unfortunately, he lost more than 10% in the past seven days after the purchase. So, after seeing the tutorial "Can Bitcoin make a profit when it falls? Teach you how to trade contracts" on the official website of the exchange, Li Xin began to try contract trading further.
If the Ethereum spot that Li Xin initially came into contact with was a speculative transaction with violent ups and downs, then the ultra-high leverage contract he entered later could be said to have almost turned the entire transaction into a nearly crazy gambling game.
On the evening of May 16, he saw that Shitcoin was falling, so he tried to operate Shitcoin perpetual contracts on the exchange through market entrustment, and chose to "sell short" with a leverage of 20 times. To his surprise, he realized a profit of 14.67% in just ten seconds.
Having tasted the sweetness for the first time, Li Xin quickly started the second contract transaction, still choosing the "short" operation of Shitcoin, but the leverage ratio was increased to 50 times.
"My opening price was 0.00001615. After the leverage was increased to 50 times, the price once rose to above 0.0000162, and my liquidation price was only 0.00001628. The price fluctuated by several points every second. It was too thrilling." Li Xin said that he stared at the rise and fall of the price of ShitCoin intently, and every jump was extremely nerve-wracking. After the loss was close to 15%, the price of ShitCoin finally fell, and finally achieved a return rate of 27.86% in ten minutes.
“There are only 0 and countless times to speculate in contracts. Although I know it is ‘licking blood on the tip of a knife’, I can’t stop after tasting a little sweetness. I just bet on the 50% chance of winning.”
After earning a certain amount of profit from leveraged contract trading, he began to gradually increase the amount of trading and the leverage multiples, until the early morning of May 17, when he miscalculated when operating a "long" contract through a limit order. "I had predicted that the price would rise after the sharp drop, but I didn't expect it to fall all the way, and finally I was forced to liquidate my position."
From a return of 14.67% to 27.86% and even to 50%, Li Xin, who tried to make a small fortune in the high-leverage contract market, only experienced a few hours of "wealth appreciation". After waking up from a sleep, all his virtual currency assets were "returned to zero".
In fact, liquidation is not uncommon for contract players, and Li Xin is just one of the tens of thousands of liquidated. According to Hetongdi data, as of 11:00 a.m. on May 16, 106,000 coin holders had their positions liquidated in the past 24 hours, with a liquidation amount of 4.5 billion yuan. As the price of coins soared and plummeted, liquidation incidents continued and even intensified. As of 7:00 a.m. on May 17, more than 138,000 people had their positions liquidated in the past 24 hours, and up to 7.6 billion yuan of coin holders' funds were wiped out.
