The unfortunate outcomes of people in the crypto world are essentially a tragic web woven from human weaknesses, market rules, and technical characteristics. As a witness to countless individuals going from wealth to bankruptcy, I want to reveal the cruel truth of this wealth game through real stories and data.
Contracts are a death trap that 99% of people can't escape.
Contract trading is like Russian roulette in a casino; it seems like there's a chance to win, but the outcome is predetermined. During the Bitcoin crash in March 2025, over 160,000 people across the network faced liquidation, and many lost their life savings in an instant. A 32-year-old white-collar worker in Shenzhen mortgaged his house for $800,000 to trade contracts, originally aiming to earn a down payment, but ended up being liquidated within five minutes, with his wife and child moving out. He messaged a friend on the rooftop: 'Contracts are like drugs; they make you feel in control, but in reality, it's a slow suicide.'
Leverage amplifies not just gains, but risks. Risks can come at you faster than you realize. There are always some people who get carried away, believing they have the luck to endure high leverage. A 10x leverage means a 10% price fluctuation can wipe you out. In May 2025, an investor shorted Bitcoin with 60x leverage, making $5 million in the short term but ultimately going bankrupt due to a market reversal, losing even his $15,000 principal.
Psychological Terminal Illness: Those who have experienced becoming rich through contracts find it hard to work peacefully again. They keep adding funds like gamblers and ultimately fall into a vicious cycle. A study in 2025 showed that 90% of contract traders experienced symptoms like anxiety and insomnia, with 40% even contemplating suicide.
The evolution from 'Squid Game' to AI fraud.
Scam methods in the crypto world mutate like viruses, from early ICO scams to AI deep forgery in 2025, leaving investors defenseless.
Here comes the classic example: Squid Game Coin in 2021, scammers issued tokens riding on the popularity of (Squid Game), with prices soaring from $0.15 to $2856, only to instantly crash to zero. One investor lost $28,000 of his pension and wrote in despair: 'I thought I had seized the opportunity for sudden wealth, but it turned out to be a coffin board.'
This year's new trick: Generative AI makes scams more realistic. Scammers use AI to create videos of 'Elon Musk recommending new coins' to lure users into buying, then abscond with the funds. A Chainalysis report shows that in 2024, crypto scams generated $9.9 billion, with projections to exceed $12 billion in 2025. What's even scarier is that 85% of scams are conducted through fully verified accounts, rendering traditional risk control methods ineffective.
Pig Butchering Scam: Scammers disguise themselves as 'wealthy beauties' on social media, building emotional connections with victims before inducing them to invest in cryptocurrencies. Data from the Canadian Anti-Fraud Centre shows that in 2023, losses from crypto investment fraud exceeded $300 million, with many victims not only losing their savings but also suffering emotional trauma.
Those who fall victim to pig butchering scams are truly unfortunate. They lose both money and life, and this scam has been around for so many years that even if they haven't encountered it, they should have heard of it.
Technical black holes and operational traps.
The technical complexity of cryptocurrencies has turned ordinary people into illiterates.
The tragedy of lost private keys: In 2025, an investor mistakenly wrote his Bitcoin private key on a tissue, which was thrown away by his family as trash, resulting in the permanent loss of assets worth 3 million. He posted on a forum: 'At that moment, I felt like a primitive man.'
The trust crisis of exchanges: In 2025, a certain exchange caused users to be unable to withdraw due to system failures, leading to collective rights protection. An investor stood outside the exchange holding a sign: 'You talk about decentralization, but it’s even less reliable than banks!'
The undercover war of greed and fear.
The crypto world acts as a mirror reflecting human weaknesses, amplifying flaws such as greed, luck, and blind following.
The story of the post-2000 'contract war god' Liangxi is a microcosm of the tragedies in the crypto world.
In February 2025, he shorted Bitcoin with a $15,000 principal and 60x leverage, wildly earning $5 million, becoming a top player in the crypto world. He boasted in a live stream, 'To me, U is just a joy bean.'
In May, he collapsed emotionally due to a $200 million liquidation and was repeatedly reported for mental instability. When creditors came to collect debts, he even absurdly suggested 'using his girlfriend's body as payment.' Now, he has turned to WeChat to set up a paid group, facing accusations of harvesting 'leeks' to extend his life.
Liangxi's experiences confirm the cruel law of the crypto world - money earned by luck will ultimately be lost by skill. His last Weibo post before leaving the scene: 'There are no war gods in the crypto world, only walking ATMs.'
Survivors in the crypto world often rely not on ability, but on luck to withdraw in time. Those seemingly glamorous 'big shots' may be burdened with huge debts or legal risks. Those who manage to exit unscathed understand that cryptocurrency is not a shortcut to wealth freedom, but a meat grinder for human weaknesses.
As the old saying goes, fortunes rise and fall. What made you profit this time might not guarantee the next. Timely withdrawal is truly important; greed will only leave you empty-handed.
Let me share some practical insights.
Any cryptocurrency that has risen for two consecutive days should be promptly reduced in position.
If any cryptocurrency rises more than 7%, there may still be an opportunity to rise the next day; continue to watch.
Strong bull coins must be entered only after the correction ends.
Any cryptocurrency that has remained stagnant for three consecutive days should be observed for another three days; if there's no change, consider switching.
If any cryptocurrency fails to recover the previous day's cost on the following day, exit promptly.
If there's a rise in the rankings, there must be a drop; if there's a drop, there must be a rise. For cryptocurrencies that have risen for two consecutive days, buy on dips; the fifth day is usually a good selling point.
Volume and price indicators are crucial; trading volume is arguably the soul of the crypto world. When the price breaks out with increased volume at a low consolidation level, it deserves attention; when there's increased volume at a high level but stagnation, it's time to decisively exit.
Strictly control positions within 50%. Retreat can be defensive, and advance can be aggressive. Never go all-in; if the market crashes, no one can save you.
Once a cryptocurrency rises 2-3 times, make sure to sell half first. After recovering your costs, use profits to play slowly with the market makers, and when you reach your target price, gradually sell. We keep 10% as a bottom position to avoid missing out on the benefits from strong market pulls.
When the market is crazy and everyone is chasing profits, you must gradually sell your chips in stages and batches. Don't be superstitious about the numbers in your account; only the money you have in your pocket is truly yours; the account balance is just a string of numbers.
Trading cryptocurrencies is not as simple as you think; it's not just about buying low and selling high to make endless profits. A qualified trader must understand economics, follow news trends, be aware of national policies, care about international affairs, study the fundamentals and technicals of virtual currencies, and constantly fight against their own fears and greed. One must have a big heart to withstand significant ups and downs, from nothing to something, and from something to nothing, resist temptation, and endure hardship. It can be said that those who survive in the crypto world are essentially resilient, impervious to harm, and forged through trials. Most people clearly lack such perseverance; success has its paths, and failure has its causes.
One crucial point is to avoid following the crowd. Many newcomers start trading cryptocurrencies, seeing someone in a group saying to sell or risk a major drop. This is the dumbest thing to do, as many people either have no assets or are misleading novices, creating panic to make you sell at a loss. Some people can't withstand the fear and quickly sell all their holdings. After you sell, those people buy at a lower price; you sell low and lose heavily, while the market makers and panic creators profit from your loss. Trading advice from others is always just advice; the key is still to make your own judgment.