The truth: the 'starting point' of rises and falls is different!
Assuming Bitcoin's current price is $30,000:
- A 10% rise → becomes 33,000 (+3,000 dollars)
- A 10% drop → becomes 27,000 (-3,000 dollars)
Looks symmetrical? Wrong!
- Rising from 30k to 33k is +10%
- But dropping from 33k back to 30k only requires -9% (not 10%! )
👉 It is easier to drop than to recover, this is a mathematical rule and has nothing to do with the platform!
Leverage amplifies this asymmetry!
Example with 10x leverage:
- Going long with a 5% rise → principal doubles 50% (5%×10x)
- Shorting a 5% drop → earns 50% the same (absolute value symmetry)
But here comes the problem!
- If the price drops 5% first, then rises 5%, you still lose money!
- For example, if it drops from 10,000 to 9,500 (-5%), then rises 5% to 9,975 (still losing 25 dollars)
👉 This is the illusion caused by different 'starting points' for rises and falls!
In summary:
The absolute returns of going long and short are the same, but the 'recovery difficulty' is different.
To recover from a 50% loss, you need to earn 100%, and high leverage speeds up this process!
Beginner's pitfall avoidance guide:
1. Don't just look at percentages, calculate how much actual money you earn!
2. Don't stubbornly hold during a drop, setting a stop loss is more useful than faith!
3. Before playing with leverage, try using Binance's demo account!
🚀 Remember: the market has no bias, but math has traps.
Only those who see the rules can earn real money!
