Misconception in the cryptocurrency circle: I only do spot trading and not contracts, so it’s always stable, right?

I do spot trading and don’t touch contract leverage, so I won’t get liquidated. Let me first say the conclusion: a considerable proportion of people who do spot trading will eventually be unable to resist doing contracts, and it is out of control.

This has to do with a fatal flaw in human nature: greed. You may not believe it and think you have strong self-control. You overestimate human nature.

Okay, follow my thoughts and imagine that you invested 10,000 in spot trading and made 20 points one day. What would you think? First of all, you must be very happy. Then? Start to regret: I knew it would rise. If I invested 100,000, I could make 20,000! MD, I made tens of thousands less!

Look, you are not happy even if you make money, because you think you made less money.

At this time, how will most people react? Two: either add positions or think about using leverage.

Note that at this time, you are already in a state of excitement.

If you open a contract, you must be very rational and cautious at the beginning. "I'll double it first, it's more stable."

Yes, double is really okay. But the magic of contracts is that no matter how low your leverage is at the beginning, most people will eventually increase the leverage bit by bit uncontrollably.

If you don't believe me, look:

1) If you make money with 2x leverage, you will think, (⊙o⊙) Wow, I made twice the profit, thousands of dollars! Isn't this much better than taking this crappy class? ! Fuck, triple it, no, five times! If I bet on the market again, I can make an extra 10,000! ! ! Go!

2) If you lose money with 2x leverage, because you opened 2x leverage, you will lose twice as much as spot. You see, you worked so hard to watch the market every day before, and you couldn't sleep day and night thinking about it, but in the end you lost all the profits and lost the principal, which is really unpleasant.

"Fuck, just open five times in the next market, as long as you guess right, you can get it back! Go!" It's over, it's over, you've fallen into the devil's way. When you reach this point, it can be said that one of your feet has already stepped into the palace of Hades. $BTC $ETH #HMSTR开盘 #美联储11月降息预期升温 #美国二季度核心PCE符合预期 #加密市场反弹 #美联储宣布降息50个基点