In the cryptocurrency market, a battlefield filled with information fog, the balance of power between retail and institutional investors is severely tilted. Market makers, with funding and information advantages, meticulously construct three major cognitive traps, accurately capturing the weaknesses of human greed and fear.
I. The Information Manipulation Maze: When Trends Become Harvesting Scythes
The explosive rise in the cryptocurrency market often hides secrets. When a certain coin rapidly surges in a short period, and social media is flooded with positive interpretations and collective endorsements from KOLs, it is likely a carefully orchestrated 'harvesting script' by market makers. They manipulate the market with financial advantages, creating the illusion of breaking through key resistance levels, and with well-packaged positive news, they disguise potential risks as investment opportunities. Retail investors, driven by the fear of missing out (FOMO), blindly chase the rise, unaware that in the exchange's depth chart, massive sell orders are already poised, waiting for high-level retail investors to take the bait.
II. The Abyss of Leverage Illusion: The Deadly Temptation of Contract Trading
Contract trading seems like a shortcut to rapid wealth appreciation, but it is, in fact, a 'zero-sum game' carefully designed by exchanges. Regardless of market fluctuations, exchanges can steadily collect transaction fees, and the funds resulting from investors' liquidation will belong to the platform. Retail investors are drawn to stories of 'becoming rich overnight with 100x leverage,' overlooking the cruel probability laws behind it. Under the normal distribution of market rules, using extreme leverage undoubtedly pushes the success rate of investment towards zero. This gambler's mentality of risking a little for a lot will ultimately make retail investors the 'blood donors' of the market, while exchanges and professional institutions sit securely on the fishing platform.
III. The Liquidity Trap Vortex: The Wealth Scam of False Prosperity
The myth of the explosive rise of niche crypto assets like meme coins and celebrity coins is essentially a game of market-making with insufficient liquidity. Market makers artificially create a false sense of prosperity by holding more than 90% of the chips. When retail investors are attracted to the surge and try to profit at high levels, they find that the market lacks sufficient support, and even a slight sell-off can trigger a price avalanche. This liquidity black hole traps retail investors, ultimately leading to the value of their assets plummeting to zero in a situation where no one is there to take over.
The Path to Breaking the Game: Building a Resilient Investment System
To survive in this brutal market game, retail investors must achieve cognitive iteration:
1. Abandon Technological Superstition: Move away from purely relying on candlestick charts for investment thinking, and delve into the project's fundamentals, focusing on core elements such as team background, technical strength, and application scenarios.
2. Scientifically Use Leverage: Use the Kelly Criterion to Reasonably Control Positions and Avoid Devastating Risks Caused by Over-Leverage.
3. Focus on Liquidity Indicators: Prioritize Actively Traded, Deeply Sufficient Mainstream Assets, and Steer Clear of Illiquid Niche Coins to Reduce the Risk of Falling into Price Manipulation Traps.
In a time when institutional investors dominate 80% of market trading volume, retail investors must establish a rational and scientific investment system, enhancing the anti-fragility of their investment strategies, in order to safeguard their wealth amidst the turbulent waves of the cryptocurrency market and avoid becoming victims of market liquidity.