In a bull market, there are 2 types of people who suffer the most losses, the smarter they are, the worse they lose!

Type 1: Newcomers who hear that others are making money and choose to enter the market.

All newcomers initially make money in the cryptocurrency space, thinking it is their own ability, but they do not realize it is just a favorable market condition. Once the market starts to decline, they will suffer huge losses. Newcomers, after tasting the sweetness in the cryptocurrency space, will increase their investments, and in the end, they will be completely wiped out.

Every newcomer has gone through this; they initially mock the seasoned investors for being timid, not knowing that seasoned investors were once young and aggressive like them. They will regret why they didn't enter the cryptocurrency space earlier, working hard in real life, and at the end of each bull market, countless people quit their jobs to trade cryptocurrencies, only to return to the workforce eventually. Not only did they not make money, but they also delayed their careers.

Type 2: People who use high leverage, choosing excessive returns.

As long as the market is good, everyone feels their capital is insufficient. If they only have 100,000 yuan, they fantasize that if they had 1,000,000 yuan, their profits would double. This mentality makes them anxious, feeling that if they do not seize the opportunity, their lives will be like this, and how many times can one take risks in life? They choose to use leverage to make up for their insufficient capital.

Such players, from the moment they increase their leverage, become gamblers. No one has become wealthy by using leverage because they are always greedy; they will never stop once they make a profit. If they have this mindset, they would not increase their leverage, making it a false proposition. In every bull market, the larger the level, the more those who use leverage will suffer. Because leverage amplifies market fluctuations.

The above two types of people cannot take away profits; they only create market volatility and provide wealth to those who profit in exchanges. The former group is newcomers, and their losses are understandable; everyone has to go through these experiences. The latter group is overly arrogant; newcomers do not use leverage; they only keep moving their deposits.

The final outcome is the same; when the market turns bearish, they will suffer huge losses because at that time, their positions are the heaviest, and they bear the greatest risk, ultimately not only returning the profits they made but also suffering significant losses on their capital. #BTC