Yesterday, there was a major collapse in the crypto market, which caused huge losses for traders, especially those who trade futures contracts. This collapse made many people lose all their money, which led to severe panic attacks and some of them had heart attacks and strokes from the psychological pressure.
Loss size
The losses were in the billions of dollars, because the value of digital currencies fell dramatically in a very short time. This collapse was sudden, and left traders unprepared to face such huge losses.
Futures Impact
Futures contracts are risky financial instruments, as they are based on future expectations of cryptocurrency prices. In the event of a collapse, these contracts can cause huge losses for traders who do not take sufficient precautions. Many people have lost all their money due to the high leverage they used in these contracts.
Spot trading as a better option
In comparison, spot trading is considered safer and less risky. In spot trading, you buy and sell cryptocurrencies directly without relying on future expectations. This type of trading helps reduce financial risks and gives traders more control over their investments.
important
Diversification is not putting all your money in one digital currency.
Risk Management Use risk management strategies such as stop loss.
Research and Analysis Study the market and analyze trends before making any investment decision.