The "Deadly Traps" of the Bull Market in Cryptocurrency: Whether Mainstream or Altcoins, I Hope You Don't Step into the Pit
A brutal truth circulates in the cryptocurrency world: there are far more people losing money during a bull market than in a bear market. The reason lies in the soaring market sentiment, with a frenzied atmosphere sweeping everyone along, and the anxiety of "if I don't go all in now, it will be too late" permeating, giving rise to a series of blind operations that lead to falling into an abyss of losses.
1: First and foremost is the frequent switching of positions.
In a bull market, the rise and fall of various cryptocurrencies occurs at vastly different paces. Many people, upon seeing another coin skyrocketing, cannot resist and immediately switch positions to follow. But just after switching, they encounter a 30% drop; then, the coin they just sold surges 300%, throwing them into a state of chaos as they switch back, only to be hit hard again. After a few rounds of this, the bull market is gone, the coins are lost, and the capital has also vanished. It's important to know that trying to precisely time the rise of all coins is pure fantasy; holding onto the coins you have and patiently waiting for them to rise is the right path.
2: Short-term trading is also a big pitfall.
Most people harbor dreams of "selling high and buying low," but reality often slaps them in the face. In a rush to realize a mere 30% profit, they hastily sell, only to miss out on 3x or 5x explosive growth. What's even more frustrating is that after selling, the price of the coin soars, and unwilling investors buy back at high prices, putting themselves in a precarious position, resulting in losses.
3: The most dangerous is recklessly opening leveraged contracts.
Regardless of how poor the project's fundamentals are, never easily short. Behind the cryptocurrency world, forces are unpredictable; a "garbage" project can be resurrected by mysterious forces, skyrocketing dozens of times; high-quality projects can also plummet 99% without warning. The occasional "heaven and earth needle" emerging from exchanges can instantly wipe out leveraged players. Therefore, this muddy water of contract leverage should not be touched; safeguarding your capital is the only way to potentially reap real rewards.
4: Holding spot is better than anything else; those who can endure are the true kings. The concept of Musk's #puppies has already increased 5 times in a week. Have you held onto yours??
