I have never seen a financial asset with so many people promoting it vigorously. It's like in some organizations, if you dare say something negative, a bunch of people will scold you. The reason is simple: if there are no newcomers to take over, the coin price won't go up. Moreover, the crypto space is the most absurd financial model I have ever seen, with many ways to encourage traders to recruit new users, such as rebates, and to encourage frequent trading, like many activities at the Sesame Exchange requiring you to reach a certain trading volume. Every exchange launches trading activities weekly, offering some kind of contract vouchers or rebates. This is especially true when altcoins are newly listed. However, the associated trading fees are very high, around one percent or so. For example, if you short sell $1000 worth of an altcoin, the fee for one round trip would be around 0.1%. If you use leverage, it becomes complicated. Regardless of how these people hype up the crypto space, my view remains that it is a bubble, although I don't know when it will crash to zero.
Additionally, even though a lot of large funds are entering the market now, I still don't have high hopes. The maximum limit for Bitcoin is at most $500,000, and I believe it won't reach that limit in the short term. This thing is, to put it nicely, digital gold; to put it bluntly, it's just chips for a group of people gambling. If we want to talk about convenience, stablecoins are more reliable than this. A group of early Bitcoin hoarders is counting on government-level forces to come in and take over. Unless the U.S. government goes crazy, there are over 30 million types of virtual currencies; why should Bitcoin be recognized? It's just a group of vested interests maintaining it through various marketing efforts. BCH and BSV also have a constant limit of 21 million like Bitcoin; why should they be inferior to Bitcoin?
The third point is that Bitcoin is not anchored to any real asset. Because there is no anchor, this thing does not generate profits like a company and will not expand on its own; this is similar to gold, which is what we call a 'parasitic asset'. However, it is clear that this thing is not as good as gold. For example, when the tariffs on the 4.2 opened, gold surged, while Bitcoin plummeted. Why is that? Personally, I think the early adopters were based on blockchain technology, but later it was joined by a group of speculative players with various marketing strategies. It's best for ordinary people to avoid it.
In short, ordinary people are fortunate not to have touched the crypto space, thanks to the country's ban on this thing. I have personally participated in forex, commodities, and stock index futures, and I have rarely seen leverage above 100+, with daily fluctuations of 20-30%. However, in the crypto space, you can basically see this every three months. People without financial knowledge should avoid anything with leverage as it’s a recipe for disaster. The A-shares are quite tricky, but unless you are extremely unlucky, they usually won’t wipe you out completely; the crypto space often does that. Now Bitcoin has returned to $100,000, and the largest buyer, MSTR, has sold all its shares, and there are also 421e of preferred shares. I personally feel this time it will peak at $112,000 at most.
Moreover, I have indeed been trading derivatives; so far, my total position is $2 million, all from short-term contracts.
Continuing to fight alone and relying on luck to make money will ultimately lead to losing based on skill and being drowned in the market's tide!
The market never lacks opportunities; the question is whether you can seize them. You need to follow the right people to survive in the market long-term and earn more!
Want to double my account, want to enjoy big profits, want to successfully recover my capital.
Stay close to Sister Xin and position yourself in advance for the main bullish wave!
