On October 16, a piece of fake news appeared in the cryptocurrency circle: Bitcoin spot ETF was approved by relevant US departments and would be listed soon. Once this news was released, the price of Bitcoin rose rapidly, from US$28,000 to US$30,000 in more than 20 minutes, an increase of more than 10%.
However, the news was soon proven to be false. Then, Bitcoin suddenly plummeted and fell below $28,000, causing tens of thousands of investors to face tragic liquidation, and cryptocurrency investors were pulled back and forth. The price of Bitcoin did not change, but the money was gone! According to incomplete statistics, the liquidation of long and short orders totaled more than $100 million, and the market was wailing!
In this cruel investment world, leverage is a double-edged sword, and there are huge risks behind it. This article will reveal the dark side of leveraged investment and help investors avoid making the same mistakes.
It is obvious that you should never use leverage when investing. Although leveraged trading allows you to make larger investments with a smaller amount of capital, its risks cannot be ignored. Just like a balloon, as you keep adding air to it, it will become more and more fragile and may burst at any time, causing you to suffer heavy losses.
In the cryptocurrency world, Bitcoin is one of the most popular digital currencies. Its price fluctuates wildly, rising or falling by tens or even hundreds of percentage points in a day. Such drastic fluctuations provide unprecedented opportunities for leveraged trading, but also lay a huge trap. Investors increase their profit potential by adding leverage, but once the market goes against the trend, the losses will become unbearable.
The sharp fluctuations in Bitcoin prices in the past two days are a good example. When Bitcoin prices soar or plummet in an instant, many investors will fall into desperate situations because of leverage. They thought they could easily make profits, but they did not expect the market to be so unpredictable. Their investment accounts were wiped out in an instant, and they even owed huge debts. Such tragedies make people wonder: Is leverage really worth the risk?
Investors should think rationally when making decisions, and not be blinded by the mentality of winning at the moment. There are many high-quality investment projects on the market, and there is no need to rely on luck to increase leverage. Stability and long-term value are the cornerstones of investment. Let time prove your choice.
For newbies who are about to enter the cryptocurrency circle, they should remain rational and calm. Don't ignore the risks because of the immediate benefits, and don't lose your mind because of greed. Investment is a long-term game. Plan your strategy well and always be vigilant about market changes.
At this time when tens of thousands of Bitcoin accounts have been liquidated, let us open our eyes and stay away from the temptation of leverage. Never leverage your investment, maintain a rational and stable mentality, and build your own wealth empire with a solid foundation!
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Investing is risky, especially when it comes to leveraged investing. Now is the time to be alert! Bitcoin's rapid fluctuations can bring you huge returns, but they can also cause huge losses. Never leverage your investments, protect your capital, and pursue stable and long-term returns. I wish you a smooth investment! #BTC B
