币姥爷
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February 15, 2025
Recently, I have learned that more people have been liquidated on February 3. I have talked to at least 7-8 people about this. You can imagine how widespread this liquidation is. I bring this up again not to open up scars, but to remind everyone, because I found that those who were liquidated in this extreme market have a commonality, that is, they opened a coin-based contract. As the name suggests, a coin-based contract uses coins as margin. Although it is opened with a 2-3x leverage, when the price falls, the value of the margin will fall simultaneously, so the actual leverage multiple is higher.
Take 1 ETH opening a 3x long order as an example. The current margin value is 2700U, and a position of 5100 US dollars is opened. If the ETH price falls to 2000U, the margin value will only be 2000U (not 2700U), and the loss amount is 700*3=2100U. The position has been liquidated, but the decline of ETH is less than one-third. Therefore, I would like to give you a suggestion again. Don't add leverage in the cryptocurrency circle, even at a low multiple. Extreme market conditions have not occurred much in the past two years, but this time it came so suddenly, and there will definitely be more in the future. In addition, currency-based contracts are more difficult to manage, so don't play with them.
Speaking of the market, it has started to fall again in the past few days, especially the AI sector altcoins that rebounded a few days ago, and some new coins on Binance, some of which fell below the low point. I took advantage of the rebound to do some swings, but the positions left were basically trapped. However, this is a must for left-side position building. Since some of the market values have reached tens of millions, I think it is not a big problem to hold some. Of course, altcoins are not worthy of belief. To buy altcoins at the bottom, you must control the position ratio because it is speculation.
Now many coins are basically priced relatively low, but mainstream assets such as BTC, BNB, and even ETH have fallen much less, and the cost-effectiveness of buying is quite high, but everyone will question whether there will be a bull market this year. From the perspective of the four-year cycle of the cryptocurrency market, there will be another round of crazier bull market this year. As early as last year, I also said that the market needs a round of adjustment. Now that it has really come, why are you so worried? Of course, we can only know the approximate bottom range of the price after the adjustment. It is impossible to completely catch the bottom. We can only buy in batches and be prepared to be trapped.
Thanks for your attention and likes.
Recently, I have learned that more people have been liquidated on February 3. I have talked to at least 7-8 people about this. You can imagine how widespread this liquidation is. I bring this up again not to open up scars, but to remind everyone, because I found that those who were liquidated in this extreme market have a commonality, that is, they opened a coin-based contract. As the name suggests, a coin-based contract uses coins as margin. Although it is opened with a 2-3x leverage, when the price falls, the value of the margin will fall simultaneously, so the actual leverage multiple is higher.
Take 1 ETH opening a 3x long order as an example. The current margin value is 2700U, and a position of 5100 US dollars is opened. If the ETH price falls to 2000U, the margin value will only be 2000U (not 2700U), and the loss amount is 700*3=2100U. The position has been liquidated, but the decline of ETH is less than one-third. Therefore, I would like to give you a suggestion again. Don't add leverage in the cryptocurrency circle, even at a low multiple. Extreme market conditions have not occurred much in the past two years, but this time it came so suddenly, and there will definitely be more in the future. In addition, currency-based contracts are more difficult to manage, so don't play with them.
Speaking of the market, it has started to fall again in the past few days, especially the AI sector altcoins that rebounded a few days ago, and some new coins on Binance, some of which fell below the low point. I took advantage of the rebound to do some swings, but the positions left were basically trapped. However, this is a must for left-side position building. Since some of the market values have reached tens of millions, I think it is not a big problem to hold some. Of course, altcoins are not worthy of belief. To buy altcoins at the bottom, you must control the position ratio because it is speculation.
Now many coins are basically priced relatively low, but mainstream assets such as BTC, BNB, and even ETH have fallen much less, and the cost-effectiveness of buying is quite high, but everyone will question whether there will be a bull market this year. From the perspective of the four-year cycle of the cryptocurrency market, there will be another round of crazier bull market this year. As early as last year, I also said that the market needs a round of adjustment. Now that it has really come, why are you so worried? Of course, we can only know the approximate bottom range of the price after the adjustment. It is impossible to completely catch the bottom. We can only buy in batches and be prepared to be trapped.
Thanks for your attention and likes.
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