For those with weak hearts, it's really unbearable; one second you're smiling, and the next second you're crying.
One: Let's take the classic Luna as an example. You have 10,000 Luna, and while you were sleeping yesterday, it was worth 1 million U. When you wake up, it has dropped to 700,000 U. You think, having been in crypto for so long, a mere 30% retracement, and UST has only depegged by 10%, I trust Do Kwon, so you confidently go back to sleep. The next day, you wake up and it has turned into 10,000 U. At this point, you think it has already dropped 99%, it can't drop any further, right? If I buy the dip and it rises to 10 U, that's ten times my investment, great! So you sell everything and put together 200,000 U to buy 200,000 Luna. Now you can't sleep, you keep watching it hoping it will go back up, but you can only watch the price drop from 1 to 0.1 to 0.000001 until it's delisted. In the end, in just three days, your 1.2 million U in assets has shrunk to the cost of a breakfast. You are completely devastated.
Besides Luna, the crypto world is very different from traditional financial markets.
One, 24/7 without rest.
Two, no limit up or down.
Three, the entry threshold is extremely low.
Four, there are many people abusing leverage.
Five, the volatility of altcoins knows no bounds.
Especially when points three, four, and five come together, becoming rich one night and getting liquidated the next is completely normal.
Be cautious with leverage everyone. You might think that a five times leverage is low, but you don’t realize that there are days with over 20% volatility every year. Because of leverage, the more it falls, the harder it is to stop the losses, ultimately leading to a chain liquidation.
