The day before yesterday, I woke up at 4 am to go to the bathroom and habitually opened my phone in the dark to check the crypto market. I saw my good friend Q had sent several messages on WeChat and had made a few voice and video calls.
Opened a long position on a contract for 2500 Ethereum, with an opening price of 2056 and a liquidation price of 1576. On the eve of Black Monday, crypto anticipated the crash, and Ethereum fell by 17%. When I opened my phone, the price of Ethereum was 1616, just 40 dollars away from liquidation!!!
Q started going long on Ethereum at 3500, adding all the way down, and adding while dropping, a total of 2.7 million USD added in, now only 200,000 USD left. He always thought he had a lot of funds outside to average down, thinking he could never be liquidated.
Yesterday afternoon, he came to discuss the next strategy with me. He frowned because he hadn't rested well the night before, coupled with immense mental pressure, his tired eyes intertwined with unwillingness and regret.
My advice to him was not to add more, to stop at the edge of the cliff, preserve the principal, and turn back to safety. There is still 2 million USD outside, to buy the dip in Bitcoin in batches, using time to exchange for space; otherwise, no matter how strong the ability to make money outside, it will still lead to a total loss.
He listened to my advice; the liquidation price is 1505, the current price is 1551, and the Ethereum position is 2560. If this order is to explode, then let it explode, absolutely no more adding.
While we were having dinner, Ethereum dipped again, hitting 1412, and his ten times long position inevitably closed at zero. Although 2.7 million USD is just a part of Q's total assets, and he has a strong ability to generate capital, his hand trembled a bit at the moment it truly hit zero. He looked at his phone in silence for ten seconds, then calmed down and felt relieved inside. Truly a person who has weathered great storms.
As of now, Ethereum is back above 1610. Back and forth, the coin price hasn't changed, but the position is gone. I consider myself one of the people who brought Q into the crypto world, and we've agreed that after he recoups that contract, he will let me manage it for him, investing in Bitcoin regularly, I ensure the principal is safe, taking a certain percentage of the profits.
Do you ask me if I feel regret? Of course I regret.
If you ask me if I regret it, I believe that even if I could do it all over again, I would still give that advice. Although the 2.7 million USD is a lot of real money to pay for a lifetime away from contracts, the cost is a bit high. But looking at life extended over several decades, I think it is worth it.
I saw an internal data revealed by a friend from an exchange, over 99% of contract users will be liquidated within three months.
When it comes to contracts, you either die directly, or you enjoy it for a while and then have no place to bury yourself. In short, doing contracts is a guaranteed death. If you can't control yourself, it's better to die early than late, dying early leads to rebirth.
Many people are luckier than Q; they could stay away from contracts from the start, investing in Bitcoin regularly. Many are not as lucky as Q; after liquidation, they are beyond redemption, heavily in debt. Even their whole family is affected.