The cryptocurrency world is very risky, and contracts magnify this risk many times, and the result is basically a road of no return.
Contracts are more poisonous than snakes. Contracts are only suitable for a small number of professional investors, and they require huge time resources and motivation to survive in the cryptocurrency circle.
The trading platform wants everyone to sign a contract.
You can lose too much money by trading contracts, but exchanges can make too much money.
I have summarized the reasons why most people are not suitable for contracts:
First, the risk.
For any investment, the first thing we should consider is not making money, but the risks.
How to control risks within a reasonable range is the prerequisite for whether you can make money. The cryptocurrency market is a highly volatile and high-risk market.
The market keeps fluctuating up and down. If we invest in spot, as long as we don't invest in junk currency or cx coins, it will never go back to zero. There is hope for a turnaround.
But as long as you start doing a contract, no matter how many times it is, your risk is 100%.
>In a market that is already very risky, you use contracts to magnify the risk many times. Do you think you can do it? Second, the market can be manipulated.
Everyone who signs a contract thinks that they are participating in a fair game. In fact, it is not the case. For most people, they have already lost as long as they participate in this game.
Basically, most people in the cryptocurrency circle keep their coins in exchange accounts. Your coins are actually kept in the exchange, and the exchange can use all your assets at will, which is equivalent to when we deposit money in a bank, and the bank can take our money out to lend.
What do exchanges do with coins? They can use huge amounts of chips to dump or pull up the market.
Why do you want to dump or pull up the market? Because these chips can be used to control market fluctuations and cause you who are doing contracts to go bankrupt.
All your position data has been put on the desk of the exchange decision maker by big data statistics. You are a lamb to be slaughtered.
You may have seen that the market trends in the cryptocurrency circle are very strange. There are always pins in the middle of the night. One pin can cause countless people to be liquidated, and it often happens in the middle of the night. At this time, you are sleeping and have no time to replenish the margin. You can only be liquidated. Therefore, ordinary people who do contracts are basically doomed to death.
Many people may say that I am doing well in contract management now. That’s because others look down on you. Once they look down on you, you’re doomed.
Third, human nature.
Speaking of human nature, we all know why gambling is addictive?
Why can’t many people quit gambling even after their families break up because of gambling? It’s because of human nature.
The temptation to magnify the income 100 times is too great. 10,000 yuan multiplied 100 times is 1 million yuan, and your life can enter a new level.
Because the temptation ahead is big enough, the greed in human nature will make people rush forward unconsciously.
It doesn't matter if I lose. I always feel that I can make it back next time, and after that I will stay away from this place of trouble.
Then after losing all their money, they start borrowing when their principal is gone. If they can’t borrow anymore, they sell their house and car. The final outcome is likely to be a margin call.
Many people in the cryptocurrency circle have gone to extremes and chosen to go to the rooftops, because they owe debts that they cannot pay off in their lifetime. This is how the tragedy unfolded.
Fourth, contracts are only suitable for professionals.
Contracts require a lot of professional knowledge and data, and there are many quantitative institutions in the cryptocurrency circle that are working on contracts.
They have big data and some of the smartest people in the world, and are more likely to collude with exchanges in private to make money together.
So they can survive in the cryptocurrency world by doing contracts.
Most people are ordinary people, and their financial knowledge, resource capabilities, cash reserves, etc. are actually insignificant.
We cannot enjoy some of the resources in the core layer of the cryptocurrency world.
Therefore, signing a contract is basically a dead end.
Even after I said all this, there are still many people who will try contracts.
However, you must try with a small position. The key is not to be greedy. Once you decide to go for a big one, you will be on a path of no return.
