The problem is that people expect to make a lot of money in cryptocurrency with a small initial investment. Because everyone is making so much, maybe a $10 investment can turn into $1,000, then $10,000, and so on. This is what attracts small players. But small players have little liquidity and often try to overextend themselves, especially with leverage. They believe they are investing a small amount. Maybe a few dollars. But suddenly they are taking on leverage. And with the market fluctuating in crypto, these small players are often seen rushing around looking for liquidity.
So if you are planning to invest in crypto, my advice is to start with a reasonable amount and always have a strategy. Blindly entering the markets, following “signals” from here and there will not help you in the long run. Your first few bets may be good, but if you continue to follow the wrong strategy, the market will catch you. And as they say, the House always wins.
