🌟 April 20 Market Update | Bloody lesson: Don't touch contracts; options are the way for ordinary people 🌟
📉 Today's market: The 'meat grinder' in a volatile market
Current BTC price fluctuates between 83,000-85,200 USD, with a 4-hour chart showing a triangular convergence pattern, indicating a directional breakout is near. However, behind the seemingly calm market, contract players are bleeding profusely—
ETH remains weak: The ETH/BTC exchange rate has dropped to a historical low of 0.0191, with whales selling off and staking liquidation risks increasing;
High leverage trap: Over 2.4 billion liquidated across the network in 24 hours, 75,000 people went to zero due to holding positions, heavy positions, and counter-trend operations;
Miner selling pressure concerns: BTC miners sold 15,000 coins in a single day; if the price drops below 83,000 USD, it could trigger a chain reaction.
Technical signals:
BTC key levels: Break above 85,500 USD bullish to 88,000; break below 83,000 USD or retrace to 80,000;
ETH lifeline: 1,580 USD is the dividing line between bulls and bears; breaking below will trigger 336 million USD in leveraged liquidations.
💔 Real case: How do contracts 'consume' people?
A recently circulated (liquidation diagram) in the community reveals the brutal truth of contract trading👇
Data truth:
78% of losses stem from high leverage, holding positions, and frequent trading;
12% of losses due to blindly chasing altcoins (rug pulls, liquidity traps);
Only 10% are due to other investment mistakes.
Core conclusion: Contracts are a wealth crusher for 99% of players!
🚫 Why is it said that contracts = chronic suicide?
1️⃣ Leverage kills invisibly:
With 20x leverage, a 5% fluctuation can lead to liquidation, whereas BTC's daily fluctuation often exceeds 8%;
In the case of 'King Short Bird', 50x leverage fully invested, went to zero in 2 hours.
2️⃣ Emotional manipulation trap:
During losses, 'fantasizing about a rebound', during profits, 'greed without taking profit';
"Finance Wukong" could have stopped losses at 3 million, but held on until 18 million went bankrupt.
3️⃣ Black swan solutions:
Exchange spikes, server crashes, sudden policy changes… Non-technical factors are hard to guard against.
💎 Smart choice: Use options to steadily gain
If you have also suffered losses in contracts, you might want to try a low-risk options strategy👇
🛡️ Earning plan in a volatile market: Sell straddle options (5% position)
Operational logic:
Simultaneously sell an 88,000 USD Call + a 78,000 USD Put (expiration date May 19);
Earn premium: As long as BTC fluctuates within the range of 78,000-88,000, you can lock in a profit of 0.005 BTC.
VS crushing advantages of contracts:
Losses have an upper limit (premium cost), while profits can snowball sustainably;
No need to monitor, time value automatically makes money for you.
📈 Practical comparison:
Contract party: 100,000 principal × 20x leverage → 5% fluctuation = liquidation to zero;
Options party: Sell straddles with a 5% position → Volatile for 30 days = 5%-8% profit.
✨ Three survival rules for beginners
1️⃣ Uninstall contract platforms:
Delete all high-leverage trading entries, keeping only spot and options accounts.
2️⃣ Practice options with a 5% position:
Start with 'selling call options' to feel the power of time value;
Example: When the current price is 85,000, sell an 88,000 USD Call (weekly profit of 0.3%).
3️⃣ Establish a trading checklist:
✅ Single investment ≤ 5%
✅ Strategy hedge (e.g., buy Put to protect spot)
✅ Daily review of profit and loss logic
🌈 Last sincere words
"Behind the excitement of contracts is a bottomless abyss, while underneath the monotony of options is the Great Wall of compound interest."
Slow is fast, let's encourage each other!
⚠️ Disclaimer: This article is for risk education only and does not constitute any operational advice!
#ContractRiskWarning #OptionsProfitStrategy #CryptocurrencySurvivalGuide #InvestmentPitfallManual
@Everyone Protect your principal, stay away from contracts!