Who is the bag holder?
In the volatile and risky realm of the cryptocurrency market, there are occasional reports of overnight wealth, but fundamentally, whether in the crypto circle or various investment markets, it is often the retail investors who end up becoming the bag holders. Behind this lies a complex and profound reason that most people know but choose to ignore, especially after the recent sharp decline, many are feeling restless again.
Let's first briefly outline the situation. Firstly, information asymmetry is a key factor. Institutional investors often have access to broader information channels and professional analysis teams. For example, before Bitcoin price fluctuations, large investment institutions can predict trends in advance through in-depth market research, close ties with industry insiders, and precise analysis of the macroeconomic environment. In contrast, retail investors mostly rely on publicly available news, which is often lagging.
Secondly, psychological factors also play an important role. Retail investors can be driven by emotions of greed and fear. When they see cryptocurrency prices soaring, greed drives them to rush into the market without regard for risks.
Moreover, a lack of professional knowledge and investment experience is also a significant reason. The cryptocurrency market involves complex blockchain technology, financial knowledge, and risk management. Most retail investors have limited understanding of these concepts, making it difficult to make rational investment decisions. Take Dogecoin as an example; many retail investors blindly invest simply because of its popularity on social media, lacking a deep understanding of the technology and value behind it, ultimately suffering huge losses during market corrections.
Additionally, market manipulation also works against retail investors. Some large players or institutions can manipulate market prices for their own benefit. They can create false market signals by buying or selling large amounts of cryptocurrency, inducing retail investors to follow suit.
Finally, a few heartfelt words for everyone to encourage each other!!!
Cryptocurrency is not a lottery, but a high-risk gamble.
Do not easily believe in "insider information"; it could be a phishing scheme.
Don't go all-in on leverage; you cannot stop losses when the exchange crashes.
Learn the underlying logic; be wary of the trap of getting rich quickly.
Investment is a marathon; surviving is more important than making quick profits.
