The fluctuations in the cryptocurrency market can really be terrifying.
Imagine, you have 10,000 SOL, and while you were sleeping yesterday, it was worth 1.5 million USD. When you wake up, it has dropped to 1.05 million USD. You tell yourself, just a 30% pullback, UST has just depegged by 10%, and the 'old experts' in the square are still calling for stability, so you choose to continue believing and sleep peacefully.
The next day you wake up, and your account has only 10,000 USD left. You feel like it has already dropped by 99%, how much lower can it go? So you add another 200,000 USD to buy the dip for 200,000 SOL, thinking that even if it rises back to 30 USD, it would be a multi-fold return.
This time, you can’t sleep. You start watching the market, hoping it will rise back, but the reality is the price drops from 1 to 0.1, then to 0.000001, and finally it gets delisted. In just three days, your 1.2 million USD asset has turned into breakfast money. Total collapse.
Besides LUNA, there are many differences between the cryptocurrency market and traditional financial markets:
7*24 hours without rest
No price limits
Extremely low entry barriers
Widespread leverage abuse
Altcoins have boundless volatility
Especially with the last three points compounded, it makes getting rich one day and going bankrupt the next in the cryptocurrency market seem perfectly normal. Many people think that 5x leverage is already low, but in the crypto world, a 20% or even 50% fluctuation in a day is not uncommon.
So please be very cautious when using leverage. When the market is good, leverage is an amplifier; when the market is bad, leverage is a meat grinder. The more it drops, the more you add to your position, and in the end, it often leads to a series of liquidations, leaving no chance of even a rebound.
I hope everyone can last a little longer in the cryptocurrency market, earn a little more, and sleep a little more soundly.
If you want to make money in the cryptocurrency market, you must be cautious, very cautious! Be mindful of your position management.
