In the cryptocurrency world, most investors have nothing at the end of the bull market, and the reasons behind this are complex and varied. On the one hand, people often get to know the market in the first round of the bull market, understand themselves in the second round, and can only truly master the game with the market in the third round. However, after tasting the sweetness for the first time, many people are easily overwhelmed by victory, blindly pursue high returns, and ignore risk management, such as using high leverage, frequent trading, speculative options, etc. These behaviors greatly increase the risk of losses.
Taking personal experience as an example, from 2017 to 2019, although the initial spot investment performed well, it was subsequently involved in high-leverage contracts and option transactions, and eventually lost everything. In the bull market of 2020, after learning lessons, it was decided to abandon high leverage and options and adopt a steady investment strategy, gradually selling and withdrawing cash in time. However, many newcomers were puzzled by this until they encountered violent market fluctuations.
Spot investment seems conservative, but in fact there are great risks, especially in a long bull market, investors are prone to a "lying win" mentality and ignore potential crises. Once entering a bear market, continued declines will seriously erode capital. In addition, even if you try to make a profit by short selling, if you cannot accurately judge the market trend, it may also lead to significant losses.
Therefore, removing high leverage, reducing over-trading, rationally planning funds, and locking in profits in time are the keys to protecting investment results. It is important to realize that every fortune given by the market needs to be carefully managed and increased in value, otherwise the "money blown by the wind" will eventually be swept away by the "wind". Every investor should have a deep understanding of the boundaries of their own capabilities and treat every investment opportunity rationally.
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