Analysis: Who is more likely to get rich by trading EOS long futures on centralized exchanges vs. buying RAM?
With the growing prosperity of the digital currency market, decentralized exchanges (DEX) and various digital asset investment methods are increasingly favored by investors. In EOS investment, investors often face a choice: to trade EOS futures through DEX, or to buy RAM directly? This article will explore the pros and cons of these two investment methods, focusing on why buying RAM may be a better choice.
EOS long futures trading on decentralized exchanges
advantage:
Leverage effect: Futures trading on DEX can use leverage to amplify profits.
Liquidity: Futures markets generally have high liquidity, and investors can enter and exit the market quickly.
Diversified strategies: Investors can use a variety of trading strategies, such as long, short and hedging.
shortcoming:
Risk of liquidation: One of the biggest risks of using leveraged trading is liquidation. Market fluctuations may cause insufficient margin in the account, resulting in forced liquidation and significant losses.
High fees: Leveraged trading is usually accompanied by high transaction fees and holding costs, which may not be cost-effective for long-term holding.
Complexity: Futures trading is complex and requires high market knowledge and operational skills, and is not suitable for all investors.
The long-term large-scale long positions have forced the market makers to make profits only through short selling, which has had a huge reverse driving effect on the price growth of EOS and greatly damaged the interests of EOS spot holders.
Buy RAM: One-way long leverage that never explodes on EOS
Characteristics of RAM
RAM (Random Access Memory) is a resource in the EOS network that is used to store account data and smart contracts. RAM has a limited supply, a fixed total of 390.17GB, and is continuously deflated, with its price fluctuating based on market demand and supply.
advantage
No risk of liquidation: There is no risk of liquidation when purchasing RAM. Investors only need to purchase once and then hold on to it, and market fluctuations will not lead to forced liquidation.
One-way long: RAM price is closely related to the development of the EOS ecosystem. As the EOS network develops and its applications increase, the demand for RAM increases and its price may rise.
Long-term value: As a fundamental resource of the EOS network, the demand for RAM is likely to grow in the long term, especially as the EOS ecosystem continues to expand.
Good liquidity: RAM has good liquidity in the market. Investors can buy or sell RAM relatively easily, which is comparable to or even higher than the liquidity of the futures market.
shortcoming
Price Fluctuation: RAM prices are affected by market supply and demand and the Bancor algorithm, and may fluctuate greatly, requiring investors to have a certain risk tolerance.
Opportunity cost: Purchasing RAM locks your funds into a specific asset and you may lose out on other investment opportunities.
in conclusion
Futures trading of EOS longs on decentralized exchanges is extremely risky for investors and has no benefits for EOS. However, withdrawing coins to buy RAM is beneficial to EOS. Buying RAM is a more stable investment method with no risk of liquidation, suitable for investors who are optimistic about the long-term development of the EOS ecosystem. In addition, RAM has good liquidity in the market, allowing investors to trade more flexibly.
In general, for most investors, especially those who lack trading skills and are afraid of taking high risks of liquidation, buying RAM is a more attractive option. It not only provides investors with the opportunity to participate in the development of the EOS ecosystem, but also avoids significant losses caused by market fluctuations. It is a one-way long leverage investment tool worth considering. The most correct action for investing in EOS is to withdraw EOS from the exchange, then purchase RAM, hold it patiently, and wait for a 10 million times return.
