Recently, the crypto market has been too exciting! Some people quietly made a fortune with 3x leverage, while others faced liquidation with 40x leverage, ending up with nothing.
That guy who claimed to be the 'king of insider information' made $26 million half a month ago, but after two short positions on Bitcoin, he was forcibly liquidated for $24.7 million! Meanwhile, another low-key trader only used 3x leverage to go long on the obscure coin PUMP, earning $1.5 million effortlessly.
Why do some people become wealthy while others face liquidation? The key lies in three words:
Distinguish between 'washing the market' and 'offloading'
Washing the market is like a 'fake fall': the market maker intentionally crashes the price to scare people, but the trading volume actually increases (more people are buying in), and after a drop, it rebounds immediately. For example, last week, PEPE suddenly dropped 20%, and the next day it surged 30%, which is a typical wash.
Offloading is 'real running away': the price consolidates at a high level, trading volume keeps decreasing, and it continues to decline. Like the JELLY coin in March, the market maker raised the price and then secretly sold off, and in the end, the exchange delisted it, leaving retail investors trapped.
Leverage is not a gambling tool!
"Legendary trader" James shorted Bitcoin with 40x leverage, and as Bitcoin rose, he instantly lost $270,000.
The correct way to use leverage:
Suppose you have 1000U, split it into 5 parts, with each part using only 3-5 times leverage.
Cut losses immediately at a 50% loss (for example, withdrawing if 200U becomes 100U)
Encountering a 'monster coin' that doubles once can cover the previous four losses!
Market makers fear this kind of person the most
Before Ethereum's surge in July, it consolidated for 3 months, and many people called it a 'junk coin' and cut their losses. But on-chain data revealed: the top 100 holders quietly increased their positions to 66%! As a result, ETH surged 30% in a week.
Remember: when the market maker washes the market, you are crying; when they offload, you are laughing.
Finally, let me share a life-saving mantra with everyone: "If the market is consolidating with low volume, run quickly; if there's a surge in volume while falling, it's time to buy the dip; is your leverage over 10 times? Liquidation will find you sooner or later!"#币安Alpha上新 #套利交易策略
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