In a bull market, there are two types of people who suffer the most. The smarter they are, the more they lose!

Type 1: Newbies who hear that others have made money and choose to enter the market.

All newbies make money in the early stage of entering the cryptocurrency circle. Everyone thinks it is their own ability, but they don’t know that it is just the good market conditions. Once the market starts to decline, they will suffer huge losses. Newbies, who have tasted the sweetness in the cryptocurrency circle, will increase their investment, and finally they will be wiped out.

Every newbie has experienced this. At first, they will laugh at the cowardice of the old leeks, but they don’t know that the old leeks were once as young and radical as them. They will regret why they didn’t enter the cryptocurrency circle earlier. In real life, they work hard. At the end of each bull market, countless people will resign and speculate in cryptocurrency, and finally return to the workplace. Not only did they not make money, but they also delayed their careers.

Type 2: People with high leverage choose excess returns.

As long as the market is good, everyone will feel that their capital is not enough, only 100,000 yuan, and they will imagine that if they have 1 million yuan, will the profit double? This mentality will make them anxious, thinking that if they don't seize the opportunity, this life will be like this, and how many times can they gamble in life. They will choose to increase leverage to make up for the lack of capital.

Such players are gamblers from the moment they increase leverage. No one gets rich by increasing leverage, because they are always greedy and it is impossible to stop when they make money. If this is the mentality, they will not increase leverage, so it is a false proposition. In each round of bull market, as long as the level is higher, the more people who increase leverage will lose. Because leverage amplifies market fluctuations.

The above two types of people cannot take away profits, but only create fluctuations in the market and provide wealth to exchanges and profitable people. The former is a novice, and it is understandable that they lose money. Everyone has to go through this. The latter is too conceited. Novices will not increase leverage, but will only move their deposits infinitely.

The final outcome is the same. They will suffer huge losses when the bull turns to bear, because at this time, their positions are the heaviest and the risks they bear are the greatest. In the end, they not only return the profits they have earned, but also lose a lot of principal.

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