I have a friend named Xiao Li. He was originally an ordinary office worker, living a routine life every day. One day, by chance, he overheard friends around him discussing the cryptocurrency world, saying that some people could double their money in a day through contract trading, and wealth grew rapidly like a snowball. His friends described it with excitement, as if the crypto world were an inexhaustible gold mine.
Xiao Li was intrigued. He began to delve into contract trading in the cryptocurrency world. He saw traders online bragging about their glorious achievements, with screenshots claiming 'doubling in a day' and 'earning millions in three days' flooding the internet. Those numbers were like tempting magical symbols, making him itch with desire. He thought that if he could be like them, his life would completely change.
Thus, Xiao Li took out his hard-earned savings and plunged into the world of contract trading. His first operation involved using 100 times leverage, just like a gambler betting all his possessions on the dice. He watched the fluctuating prices, his heart racing faster. He thought that as long as the price fluctuated a little, he could make a fortune. However, he overlooked the enormous risks behind it. If the price fluctuated by 1%, he would either earn 100 yuan or lose everything.
At first, Xiao Li seemed to have good luck, making a few small profits. This made him even more convinced that he had found a shortcut to wealth, and he began to increase his investments, even borrowing money from friends. His mind was filled with those screenshots of profits shared online, fantasizing that he could also buy a new car and a house, reaching the peak of life like them.
However, the good times didn't last. One day, the market suddenly experienced severe fluctuations, and prices became uncontrollable like wild horses. Xiao Li watched helplessly as his account balance rapidly shrank. He wanted to close his positions to stop the losses, but it was too late. In the end, his account was liquidated, losing not only all his savings but also incurring a mountain of debt to his friends.
He was completely stunned, falling into deep despair. It was then that he realized that those who flaunted their profits online were like the winners in a casino, banging drums and cheering, while people like him, who were liquidated, could only hide in a corner and cry. He began to realize that the so-called money-making stories he saw might all be carefully crafted scripts, a kind of survivor's fallacy.
He discovered that those who traded contracts seemed to share a similar fate. When Bitcoin rose to $100,000, everyone went crazy with leverage, fantasizing it would reach $1 million, their greedy appearances resembling madmen intoxicated by wealth. But when Bitcoin fell to $50,000, they were all scared and hurriedly cut their losses. This behavior of chasing highs and selling lows saddened Xiao Li; he saw the frailty of human nature in the face of greed and fear.
There are only two outcomes for those who trade contracts. One type, like him, gets liquidated and exits the market, trembling at the mention of the word 'leverage', never daring to venture again; the other type is still at the gambling table, unwilling to accept defeat, waiting for the next 'turnaround', like those addicted to playing mahjong, always thinking they will win back in the next round. But in reality, the only ones making money are the exchanges running the casinos, like the big bosses behind the scenes in the crypto world, driving their newly bought Lamborghinis and watching the retail traders struggle in contract trading.
After experiencing these painful lessons, Xiao Li began to follow me and join an institution to build his own trading system, focusing on spot trading.
Through learning, he discovered that those who truly made money in the cryptocurrency world were the ones who held onto their coins. Bitcoin has risen thousands of times over ten years, but perhaps less than 1% of people held on to it from start to finish.
Most people always want to 'buy low and sell high', but the result is often the opposite. When prices rise, they fear a drop and sell early; when prices fall, they fear a crash and quickly cut their losses. It's like an old farmer planting trees; if he digs them up every day to check if the roots are growing, the trees will eventually die.
From then on, he was no longer fooled by the fantasies of getting rich overnight, but chose to become wealthy slowly. He followed professional institutions, invested in potential cryptocurrencies at the bottom of the bear market, patiently waiting for the value to return, then cashing out profits at the peak of the bull market, and repeating the cycle.
In this world of temptation and traps in the cryptocurrency realm, Xiao Li finally understood a truth: leverage amplifies not the profits, but the greed of human nature. There are no miracles in the casino, only a fate of being harvested. And gradually becoming wealthy is more reliable than getting rich overnight; this is the true essence of surviving in the cryptocurrency world. (By the time you finish reading this article, another 500 contract accounts in the crypto world have been liquidated...)