How should one handle spot trading in the cryptocurrency market?
The belief that 'holding spot is not scary' is actually a fatal misconception.
The biggest danger of spot trading is the lack of awareness when prices drop.
Traders in spot markets may feel that a drop is not a big deal since the quantity of coins hasn't decreased; they just wait for prices to recover, but when prices do rise, they hesitate to sell, and then the prices drop again, ultimately leading to a loss of all value.
Moreover, they may fall into a self-delusion during a crash, caught in a vicious cycle of 'wait for a rebound after a 10% drop → delete the app after an 80% drop';
Compared to contract traders who are quick to cut losses, spot traders often have a lower awareness and perception of project risks.
The real risk is not the volatility, but ignorance and negligence towards risks.
'When you gaze long into the abyss, the abyss also gazes into you' — the excess returns in the crypto market are always proportional to the hidden risks.
If you currently feel helpless and confused in trading, and want to learn more about cryptocurrency-related knowledge and cutting-edge information, follow me, and you won't get lost in this bull market! Yi Xiu has been navigating the market for many years and understands the opportunities and traps within.
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