Because it has a wealth effect.
In this circle, you often hear about someone making a fortune. The previously hottest Liangxi made 20 million by shorting during the 519 incident; although life is tough now, he is famous enough.
The post-00s rich generation on Zhihu.
There's also a high school student who studied in the US, who made a lot of money.
There’s also a female college student who made ten million by shorting Luna.
Bitcoin King also made tens of millions.
The previously famous Ma Deshui turned 10,000 into 50 million.
There are also other people who make money in bits and pieces.
This has attracted a large number of people wanting to make a profit.
However, among those who trade contracts, there can be stable profits, but it's less than one in a thousand. Don’t talk about how much you made in the short term, or ten times, a hundred times, etc.
With small funds, I've experienced hundred times in a short period. The problem is that this does not contribute to asset appreciation at all.
This type of person often feels that their capital is not much and can only rely on contracts to gamble, which is often the beginning of losses.
On the other hand, due to the economic downturn, class solidification, ordinary people can only enter the finance industry with a very high degree.
The stock market goes without saying; those who understand know.
For various reasons, everyone wants to trade cryptocurrencies and achieve wealth through contracts.
Take out a year's income, buy in a bear market, and sell in a bull market.
With good luck, in one cycle, making ten times is equivalent to working for ten years.
Of course, after staying in the crypto space for a long time, many people look down on making ten times, believing that it has to be a hundred or thousand times to be free.
In fact, making ten times in one round is already very good.
Why is it easy to make money in this market? Making money relies on two things.
One is volatility; the other is the amount of capital.
If you have a few million, then you just need to do a good asset allocation to make steady profits.
Most of those playing in the crypto space are broke cattle.
Then you can only rely on volatility. If you have 20,000, allocate to altcoin spot trading; a five times leverage gives you 100,000.
This is why we come to play in the crypto space: high volatility, high risk-reward ratio. As long as you choose the leading coins in each field, the probability of going to zero is very low. Losses can only be 20,000, but gains can be over 100,000.
The second is that the competitors are too weak; the competitors are all foolish, thinking about getting rich every day and cannot remain calm.
Then calm and rational people will become wealthy.
Therefore, to make money trading cryptocurrencies, you need to be a bit stronger than your competitors.
You can be calmer than your competitors, and you can also be more patient than them.
Those with more resources can get information faster than their competitors.
More disciplined than your competitors.
If you came to the crypto space just by watching others make money, then your money will eventually end up in someone else's pocket.
Similarly, being just a little better than others in other industries only allows you to earn a little more salary each month.
In the crypto space, other people's money will always flow into your pocket, allowing you to accumulate your first pot of gold.
It also depends on two conditions.
First, your original capital; second, how much money equals financial freedom for you.
If your capital is 10,000 to 30,000, then in a bull market, you can make 5-20 times, and with good luck, make 50 times. So in one round, extremely fortunate can make 1.5 million but might only make 50,000. In short, you need two bull markets to possibly achieve financial freedom.
If your capital is 200,000 to 300,000, the same principle applies: one round down, bad luck might be 1 million, good luck might be 15 million.
Most people need to be at this level to achieve financial freedom.
According to ordinary people's statement, achieving financial freedom is still quite difficult.
If the capital is small, at least two rounds of bull markets are needed to achieve it; if the capital is a bit more, it may be achieved in one round.
Of course, there are also skilled traders who can make money regardless of bull or bear markets, making profits through volatility.
Have your own trading system, build steadily, and accumulate slowly.
Financial freedom is not that simple; it needs to be considered from three aspects: personal ability, time, and capital.
If personal ability and capital are not enough, then you can only extend the time.
If time is not enough, you can only rely on capital and ability to achieve it.
Achieving financial freedom is difficult in any industry; it’s just that the crypto space has more opportunities and greater volatility.
