Most people in crypto have very little awareness of risk. Their heads are completely clouded by dreams of getting rich overnight. For ordinary people, trading futures is a negative-EV game in itself—one that is bound to lose money over the long run. Trading futures on shitcoins amplifies those negative returns even further.
Don’t underestimate even just 5x leverage. Crypto assets have no price floor, and their prices can fall to an endless string of zeros after the decimal point. Add the huge slippage caused by frequent wicks and drying-up liquidity, and for most people, the only difference is whether they lose sooner or later.
If you want to survive in the market over the long term, you need to allocate some of your portfolio to spot. And even if you trade futures, stick to Bitcoin, Ethereum, and US stocks—not shitcoins.
Bitcoin, Ethereum, and US stock futures have ample liquidity and are less vulnerable to manipulation by a single player. Their price movements are driven by macroeconomic fundamentals, and slippage risk is manageable. Losses are still possible, of course, but at least you avoid the extra, potentially fatal risk of a project team dumping its tokens. When you trade shitcoins, you’re not putting money into the market and waiting for it to grow—you’re continually funneling your principal into it, and the market could wipe out your account in one go at any moment.
Don’t underestimate even just 5x leverage. Crypto assets have no price floor, and their prices can fall to an endless string of zeros after the decimal point. Add the huge slippage caused by frequent wicks and drying-up liquidity, and for most people, the only difference is whether they lose sooner or later.
If you want to survive in the market over the long term, you need to allocate some of your portfolio to spot. And even if you trade futures, stick to Bitcoin, Ethereum, and US stocks—not shitcoins.
Bitcoin, Ethereum, and US stock futures have ample liquidity and are less vulnerable to manipulation by a single player. Their price movements are driven by macroeconomic fundamentals, and slippage risk is manageable. Losses are still possible, of course, but at least you avoid the extra, potentially fatal risk of a project team dumping its tokens. When you trade shitcoins, you’re not putting money into the market and waiting for it to grow—you’re continually funneling your principal into it, and the market could wipe out your account in one go at any moment.