Will the rise and fall of the cryptocurrency circle really scare people to death?

Yes, take the most classic example of Luna. You have 10,000 Luna. When you went to bed yesterday, it was worth 1 million U. When you woke up, it became 700,000 U. You said that I have been in the cryptocurrency circle for so long, and it only retreated by 30%, and ust only decoupled by 10%. I believe in DoKwon, so I went to bed again. The next day, I woke up and it became 10,000 U. At this time, you think that it has fallen by 99%, and it should have fallen to the bottom. I will buy it now and it will rise to 10U, which is ten times. So you sell your pot and get 200,000 U to buy 200,000 Luna. At this time, you can't sleep. You keep staring at it and hope it will rise back, but you can only watch the price go from 1 to 0.1 and then to 0.000001 and finally be delisted. In the end, in three days, your 1.2 million U assets have shrunk to the money for a breakfast. You are completely collapsed.

In addition to Luna, the cryptocurrency market is very different from the traditional financial market. First, it is open 24/7. Second, there is no price limit. Third, the entry threshold is extremely low. Fourth, there are many people who abuse leverage. Fifth, the rise and fall of altcoins are boundless. Especially when the third, fourth and fifth points are combined, it is normal to get rich overnight and blow up overnight. Be careful with leverage, everyone. You think your five times leverage is already very low, but you don’t know that there are days every year when the fluctuation exceeds 20%. Because of leverage, the more it falls, the more it cannot stop, and finally leads to a series of liquidations. Why can ETH reach more than 800 in this bear market? Isn’t it because the liquidation price on the chain is clear, and there is money to pick up cheap corpses?

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