1. Why did the hospital issue a warning? Leveraged crypto trading has triggered an 'insomnia crisis'.
Recent data from leading hospitals' psychiatric departments shows a 300% year-on-year increase in insomnia patients due to crypto trading, with common symptoms including palpitations while watching the market at 3 AM and hallucinating the sounds of K-line charts after a liquidation.
High leverage can be considered 'mental opium': under 100x leverage, even a 1% fluctuation can cause heart rates to soar to 180 beats per minute, far more stimulating than Red Bull and caffeine.
4 types of people face extremely high risks when using leverage: students, those with mortgage debts, individuals with a history of depression, and those over 35 who often stay up late. For these people, using leverage to trade crypto is akin to 'gambling retirement funds on high-risk assets'.
You should know that while exchanges promote 'you can make money even when prices drop', they won't tell you that when you get liquidated and incur losses, hospitals won't accept USDT for medical bills.
2. Real-life case: How does leverage affect people's lives?
Case 1: A college student borrowed money online to participate in contract trading, using 50x leverage on ETH. Initially, they earned six months' living expenses from a 5% increase in ETH, but one night, the price fluctuated wildly, causing them to lose their principal and owe the exchange 80,000 yuan. Now, they can only pay off their debt by delivering food.
Case 2: A seasoned investor adjusted their strategy after losing $330,000 while shorting ETH with 25x leverage: first, they reduced the leverage to below 5x, and second, they set an alarm to ensure they sleep 6 hours a day. Subsequently, their annualized returns increased by 20%.
Retail investors using leverage are like running naked into a minefield, while professional institutions wear protective gear. The difference lies not in the amount of capital but in whether there is a clear awareness of stop-loss.
3. Crypto trading survival guide: How to balance profits and health?
Leverage should not exceed your age: For a 25-year-old, leverage should preferably not exceed 25x; for a 50-year-old, it might be better to choose spot trading, as the heart is much weaker than K-line charts.
Set a 'mandatory cool-down period': Withdraw 1% of profits to your bank card for every 10% profit; if you lose 5%, turn off your computer and go for a walk. Remember, there are always opportunities in the crypto world, but what’s lacking is people who can participate consistently.
Beware of the 'insomnia trifecta': perpetual contracts, high funding rates, and major market movements at midnight—this is often a common combination for exchanges to harvest retail investors.
If you want to develop long-term in the crypto space but feel lost, wish to quickly get started, understand industry information gaps, obtain first-hand information and in-depth analysis, and learn the 'reasonable leverage usage methods' from professional institutions, follow Su Xiaowan for stable investments.
