Why do new retail investors keep pouring into the cryptocurrency market?
Because this place allows you to use five hundred as if it were fifty thousand.
This is the closest place for the poor to the rich. The rich have more money and can leverage it, while the poor have less money and face many restrictions in other markets or cannot meet high thresholds.
These restrictions are falsely named as protection, yet when a gambler is about to lose all their money, what can protect them?
When you only have five hundred, what can you invest in? Save it? Eat something good? Or buy a low-priced stock?
The possibility of being liquidated using leverage is very high; no one can accurately predict market trends, only speculate and estimate. Of course, many more are guessing and gambling. But for the poor, at least there is a chance, a thought.
Why do so many people buy lottery tickets knowing they won't win? Being foolish is one aspect, but they can't calculate the return rate. Many people see the lottery as a hope for life. The little money spent on lottery tickets doesn't help life improve, but if they win, it could completely change their current life. It's the same as trading cryptocurrencies with high leverage.
For the wealthy, using leverage is much more comfortable. They can even enjoy the profits without bearing the risks. As long as they go long in currency and keep the actual leverage below 1, liquidation is very difficult (if you go long in USD, you won't be liquidated). Given that the currency price will eventually rise, they will always earn more money (because spot trading = 1x long inherently carries risks).
Here's the key:
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