You're right, controlling leverage and managing drawdowns is the key.
一树繁花
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Behind the $200 million liquidation is the collective collapse of the crypto 'leverage cult'
Liangxi's liquidation was not a coincidence, but the result of a faith collapse. You think he just failed to hold a short position on BTC, but in reality, he died clinging to a belief: high leverage is efficiency, and a reversal is what makes it respectable.
This is not just his fault, but a collective pathology of the entire crypto 'leverage cult.' Hanging on to leverage, mindless long and short trading, holding through pullbacks, and doubling down after liquidation.
You think they are experts, but in fact, they are a group of gamblers. You think they are calculating their positions, but they are just desperately prolonging the countdown to death.
A short position of 2000 BTC, three days without sleep, emotional collapse; this scene seems dramatic, but it is merely the classic ending of the 'leverage cult.' At every bull market peak, such a blood sacrifice will be offered: believers go crazy first, then liquidate, and then cry for the market's forgiveness.
What is even scarier is that the spectators do not learn from the lesson, but rather get excited: "He got liquidated, I went long, I made a profit!" But you forget, the market will always turn around to harvest all the proud ones; leverage is a double-edged sword, it can kill him, and it can kill you.
Liangxi collapsed; the lesson is extremely brutal. But you cannot just see the $200 million and ignore the logic collapse behind it.
Real trading is anti-leverage, anti-emotion, and anti-human nature. Holding onto positions is not bravery; it's foolishness. Stubbornly holding on is not loyalty; it's a poisoning of faith.
The 'leverage cult' has never lacked followers, but in the end, only tombstones remain. $ETH $BTC $XRP #BTC挑战11万大关 #BTC再创新高
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