In the first round of a major bull market, there are 2 types of people who suffer the most, the smarter they are, the more they lose!

Type 1: Newcomers who hear others are making money and choose to enter the market.

All newcomers initially make money when they enter the cryptocurrency space, thinking it’s their own ability, but they don’t realize it’s just the good market conditions. Once the market starts to decline, they will face huge losses. Newcomers, after tasting sweetness in the crypto world, will increase their investments, and in the end, they will be wiped out.

Every newcomer goes through this; at first, they will mock the old investors for their cowardice, not knowing that the old investors were once young and aggressive like them. They will regret not entering the crypto world sooner. In real life, they struggle hard, and at the end of every bull market, countless people quit their jobs to trade cryptocurrencies, only to return to the workforce eventually. Not only did they not make money, but they also wasted their careers.

Type 2: High-leverage individuals seeking excessive returns.

As long as the market is good, everyone will feel their capital is insufficient. With only 100,000 yuan, they will fantasize that if they had 1 million yuan, their profits would double. This mindset makes them anxious, thinking if they don’t seize the opportunity, their lives will remain stagnant, and how many chances do they get to gamble in life. They will choose to leverage to compensate for the lack of capital.

These players become gamblers the moment they increase their leverage. No one becomes rich through leverage, as they are always greedy. If they have this mindset, they wouldn’t leverage, hence it’s a false proposition. In every bull market, the larger the leverage, the more they will lose. Because leverage amplifies market volatility.

Both types of people cannot take profits; they only create volatility in the market and provide wealth to exchanges and those who profit. The former are newcomers, and their losses are understandable; everyone must go through this. The latter are overly arrogant; newcomers won’t leverage; they will only move their deposits endlessly.

The final outcome is the same; when the market turns bearish, they will all suffer huge losses because at that time, their positions are the heaviest, and they bear the greatest risks, ultimately returning not only their profits but also suffering significant losses on their capital.