In the cryptocurrency market, contracts often lead to liquidation, and many people even sell their homes and commit suicide. Why are there still so many people involved?

Speaking of which, there is a significant temptation behind this. Take income as an example: if you work diligently every month, you only take home 10,000. However, in the cryptocurrency contract market, if you use 10,000 as principal to play with 100 times leverage, as long as the market 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 generally fall into two categories: one is wealthy experts who use small amounts of money to open small positions, treating it like holding spot assets, with a very stable mindset; the other category is mostly speculators with limited funds who want to get rich overnight through leverage.

In this cryptocurrency realm, when the market is extreme, the speed of price fluctuations is beyond imagination. It is common to see fluctuations of 1-2% in one second, which means that if luck is on your side, you can earn a month's salary in just one second. Some smaller capital markets are even more exaggerated, where it’s effortless to pull up 10 or 20 points in a minute. Even Bitcoin can easily drop 3-4 points in a minute.

Moreover, the compound interest in contracts is quite tempting, turning 10,000 into 20,000, doubling the profit; 20,000 to 40,000, also with a 100% return. In this way, wealth grows like it’s on a rocket, multiplying exponentially. If you trade ordinary spot assets with 100,000 and the market fluctuates by 1%, you only earn 1,000; but if you open a contract with 10 times leverage, the same 1-point fluctuation directly turns your profit into 100,000. This difference is like heaven and earth.

Additionally, some people are blindly confident, believing that as long as they can manage their positions well and precisely control risks, setting profit-taking and stop-loss for each order, they can make guaranteed profits.

However, in reality, the risks of cryptocurrency contracts are extremely high, and the so-called “guaranteed profit” strategies are mostly traps. Once you fall into them, you could lose everything. Recently, Dao Ge is quite optimistic about Musk's Dog PP, which has a low market value and huge potential, with at least 10 times more room for growth. Brothers who want to turn their fortunes around can pay more attention.