Cryptocurrency Contracts: Danger and Temptation Coexist, Why Do So Many People Rush In?

In the world of cryptocurrency contracts, the tragedy of liquidation is not uncommon, with some even selling their homes or resorting to extreme measures. Yet, despite this, why do so many continue to flock to it? The answer lies in the enormous temptation hidden behind it.

First, let's look at income. A hard-working person may only take home 10,000 a month, while in cryptocurrency contracts, with a principal of 10,000 and opening a contract with 100x leverage, the market only needs to rise by 1% to instantly make a profit of 10,000. Compared to working income, it's simply worlds apart.

Players in cryptocurrency contracts can be roughly divided into two categories. One type is skilled traders with ample funds, who use a small amount of capital to open small positions, akin to hoarding spot assets, maintaining a calm mindset. The other type has limited funds and seeks to get rich overnight by leveraging.

Cryptocurrency market conditions are extreme, with astonishing speed of price fluctuations. It is common to see a 1 - 2% fluctuation in just one second, meaning that with good luck, one could earn an ordinary person's monthly salary in a second. Some smaller capital markets are even more exaggerated, easily pulling up by ten or even twenty points in a minute. Even Bitcoin can drop 3 - 4 points in a minute without it being a surprise.

Moreover, the compound interest allure of contracts is extraordinary. Turning 10,000 into 20,000 doubles the profit, and going from 20,000 to 40,000 yields the same 100% return, resulting in exponential wealth growth. Trading ordinary spot assets with 100,000, a 1% fluctuation would only earn 1,000; however, opening a contract with 10x leverage, the same 1% fluctuation would see profits soar to 100,000.

Additionally, some people are blindly confident, believing that as long as they manage their positions well and accurately control risks, setting stop-loss and take-profit orders with each trade will guarantee profits with no losses. However, the risks in cryptocurrency contracts are extremely high, and what is said to be a “sure profit” is often a trap; once entrenched, it can lead to complete loss of capital.