Why do people who easily get addicted to trading should avoid contracts? Let's take a look at the real tragedy around me!

During the bull market in 2021, I had a friend who invested over 700,000 and quickly made over 5 million. At that time, whatever he bought, it would rise, and it felt like money was never enough. Later, he even opened a contract account, and after learning about it, he made even more money and was incredibly happy.

One day he suddenly asked me if I knew any good coins to invest in, saying that investing in small coins was inconvenient for him. When I heard this, I felt a shock and asked him where he got so much money. He told me it was through financing, with five times leverage, and the interest wasn’t low, plus they deducted one month in advance.

I was worried that this might lead to problems, but he was quite confident, saying it was introduced by a friend in the securities industry and was absolutely safe. However, I already felt that the bull market was coming to an end, and I urged him to clear out his contract account for three consecutive days, but he refused, believing there wouldn’t be any major issues.

As a result, just a few days before May 19, Musk suddenly announced that cars no longer needed to be bought with Bitcoin, and then Bitcoin plummeted dramatically, dropping 34% in a single day. Other coins also fell hard, with Dogecoin, Shitcoin, and others dropping over 50% and 60%. Since then, I haven’t heard him mention anything about the crypto world. Later, I found out he was liquidated and lost over 18 million.

That night he cried heart-wrenchingly and almost couldn’t take it anymore. His wife comforted him all night, fearing he might do something foolish.

Later, the couple moved to another city, and from then on, there was no contact.

So now when someone asks me about contracts, unless they can truly follow my trading strategy, I always reply: buy spot.

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