Do the fluctuations in the cryptocurrency market really scare people?
Yes, let's take the classic example of Luna. You have 10,000 Luna, and when you went to sleep yesterday, it was worth 1 million USD. When you woke up, it had dropped to 700,000 USD. You say, I've been in the crypto space for so long, a mere 30% retracement, and UST only depegged by 10%, I trust Do Kwon, so I slept soundly again. The next day when you wake up, it has dropped to 10,000 USD. At this point, you think it has already dropped 99%,
It should have nowhere to fall now, if I buy in at the bottom and it goes up to 10 USD, that's ten times my investment, how wonderful! So you sell everything you have and gather another 200,000 USD to buy 200,000 Luna. At this moment, you can't sleep; you keep a close eye on it, hoping it will go back up, but all you can do is watch the price drop from 1 to 0.1 all the way down to 0.000001 before it gets delisted. In just three days, your 1.2 million USD in assets has shrunk to the price of a breakfast. You are completely devastated.
Apart from Luna, the crypto market has many differences compared to traditional financial markets: first, it operates 24/7 without breaks; second, there are no trading limits; third, the entry threshold is extremely low; fourth, the number of people abusing leverage is very high; fifth, altcoins have limitless fluctuations. Especially when points three, four, and five combine, it is not uncommon to get rich in one night and get liquidated the next. Be cautious with leverage, everyone; you may think that five times leverage is low, but there are days with over 20% volatility every year. Because of leverage, the more it falls, the harder it is to stop, ultimately leading to a chain of liquidations. Why could ETH drop to over 800 during this bear market? Isn't it because the liquidation prices on-chain are crystal clear, and there are funds swooping in to pick up the cheap corpses?
The market is never short of opportunities; the question is whether you can seize them. By teaming up with experienced and the right people, we can earn more! The team still has positions available, hurry up!
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