Do you think a 50% drop in the crypto market is significant?
Perhaps I have experienced large fluctuations since I entered the market, or maybe I have been trading for so long that I am numb to the fluctuations, especially since I often go on-chain to experience new things. I am even more indifferent to the volatility.
I have long been numb to the 50-80% fluctuations in this circle.
I do not recommend that everyone use leverage. Many people around me, with fortunes in the eight or nine figures, have been wiped out by using leverage. A few days ago, there was a sister who reached nearly nine figures in spot trading during the last bull market, but she didn’t withdraw any funds and was cut in half to around 20 million. In the past year, she almost got wiped out while playing with leverage. Some time ago, I heard she went all-in with 3 million in leverage, and it just didn’t feel right. I kept reminding her to reduce it, and she almost went to zero. It’s all tears.
Many times, I feel numb inside about this circle. Recently, the liquidity wash of altcoins has carried a leverage volume close to historical extremes. Do you think that is reasonable?
I don’t know how to explain, but I can only tell you to touch leverage less. You are not a professional, and even if you are a professional, using leverage in this circle can still be deadly.
Even with a win rate of 99%, just one unexpected event can take you out. It is not ruled out that some people get lucky and encounter a large one-sided market going up all the way.
99.9999% are cannon fodder. I have seen many geniuses, but given the current market liquidity and the environment, using leverage is no different from jumping off a building.
Especially in the case where most altcoins are losing money while managing market capitalization, the optimization of trading systems has made it very difficult for leverage to survive.