In the cryptocurrency market, contracts often lead to liquidation, and many people even sell their homes and jump off buildings. Why are there still so many people playing?

Speaking of which, there is quite a temptation behind this. Take income as an example: if you work diligently every month, you only take home 10,000. But in the cryptocurrency contract market, if you use 10,000 as capital to play with 100 times leverage, and the market only fluctuates up by 1%, you can immediately earn 10,000. This speed of making money is astonishing compared to working.

Those who trade contracts in the cryptocurrency market can be roughly divided into two types: one type consists of wealthy experts who use small amounts of money to open small positions, treating it as holding spot assets, and their mindset is very stable; the other type mostly consists of speculators with limited funds who want to get rich overnight through leverage.

In the cryptocurrency market, during extreme market conditions, the speed of price fluctuations is beyond imagination. It is common for prices to fluctuate 1-2% in one second, which means if you are lucky, you can earn a month's salary in just one second. Some small-cap funds are even more exaggerated, easily pulling up by a dozen or twenty points in a minute. Even Bitcoin can easily drop by 3-4 points in one minute.

Jumping off buildings

Furthermore, the compound interest in contracts is quite tempting. Turning 10,000 into 20,000, doubling the profit, and then going from 20,000 to 40,000, also a 100% return, wealth grows like a rocket, multiplying rapidly. If you use 100,000 for ordinary spot trading and the market fluctuates by 1%, you only earn 1,000; but if you open a contract with 10 times leverage and the market fluctuates by just 1 point, the profit directly becomes 100,000. This difference is like heaven and earth.

Additionally, some people are blindly confident, thinking that as long as they can manage their positions well, precisely control risks, and set stop-loss and take-profit orders for every trade, they can make guaranteed profits.

But in reality, the risks in cryptocurrency contracts are extremely high, and those so-called 'guaranteed profit' tactics are mostly traps. Once you fall into them, you will lose everything. Recently, Dao Ge is quite optimistic about Musk's little dog PP, which has low market value and huge potential, with at least a tenfold space. Brothers who want to turn their fortunes around can pay more attention.