Why are there still so many people keen on trading cryptocurrencies? Because this place allows you to use five hundred as if it were fifty thousand.
In fact, the crypto world is neither heaven nor hell; it is merely a mirror that amplifies human greed, fear, and fragility. What everyone is addicted to may not be money, but rather that 'desire to change one's fate quickly.'
This is the closest ordinary people can get to wealthy individuals. Wealthy people have more money and leverage, while ordinary people have less money and face many restrictions in various markets, or cannot meet high thresholds.
These restrictions are euphemistically called protection, but when a gambler is about to lose all their money, what can protect them?
When you only have five hundred, what can you invest in? Save it? Treat yourself to something nice? Or buy a low-priced stock?
The possibility of being liquidated using leverage is very high; no one can predict market trends, only make guesses and estimates. Of course, more people are speculating and gambling. But for ordinary people, at least there is an opportunity, a thought.
Why do so many people buy lottery tickets knowing they won't win? Being foolish is one aspect; they can't calculate the return rate. Many people view the lottery as a hope for life. That little money spent on lottery tickets doesn't really help improve life, but if they win, it could completely change their current life. It's the same as trading cryptocurrencies with high leverage.
For wealthy individuals, using leverage is much more comfortable. They can even enjoy the profits without bearing the risks.
As long as they go long with cryptocurrency and keep the actual leverage below 1, it is hard to get liquidated (going long on USDT and short on cryptocurrency won't lead to liquidation). Under the premise that cryptocurrency prices will eventually rise, they can always earn more money (because spot trading = 1x long inherently carries risks).