120 million liquidated in 3 hours!
A trader opened a contract at around 2 a.m. on the 20th and posted the following on Weibo:
"The essence of trading is to test and challenge one's own humanity, and the market is the judge. I have seen mountains and seas, and I have also crossed crowds of people. I have experienced extreme pain and madness, and experienced countless ups and downs. It is far more difficult to defeat myself than to defeat the market. I am tired of this repetition day and night. In the end, whether it is heaven or hell, it is destined from the first moment you step into this market. 18 million US dollars, more than 120 million yuan, bet everything, speed up this process, and let the answer be revealed as soon as possible."
The anxiety and inner torment revealed in this description have completely made this trader lose his rationality. Even if the market is as he wishes this time and can make him rich, I believe that his wealth will eventually return to the market.
About 5 o'clock three hours later, all of this user's more than 100 million funds were liquidated.
I think this case of liquidation is definitely not the only one in this waterfall. According to statistics, within 24 hours, the entire network was liquidated 5 billion yuan.
There are many rumors about this waterfall on the Internet. Some say that it is because Binance stopped withdrawing coins for system maintenance...
No matter what the real reason behind this waterfall is, as ordinary investors, we should have a basic line of defense to protect ourselves from various risks in this turbulent market.
First of all, we must have a clear understanding of this investment market.
For most domestic investors, the digital currency investment market, in addition to facing various internal and external risk shocks like all investment markets, has a very special place, that is, it has almost no risk warnings and restrictions.
Now the leverage of exchanges has reached 125 times, which is unimaginable in traditional regulated investment markets.
And exchanges have seen that human nature is extremely difficult to resist greed, and in the game between exchanges and traders, greed will always kill traders without exception and make exchanges make unlimited profits.
Therefore, exchanges have brought out all the ways to stimulate human nature. Human nature is completely exposed to such stimulation, and if you are not careful, all your previous efforts will be wasted.
In this market, most traders are meat on the chopping board, waiting to be slaughtered.
Whenever the market continues to improve for a period of time, traders' bullish sentiment rises, and there will be impulsive traders who bet heavily and buy more with leverage; and when the market continues to go down for a period of time, traders' bearish sentiment accumulates, and there will be traders who bet heavily and sell short with leverage.
Just when traders place heavy bets and dream that the market trend will continue to move in the direction of their bets, the market turns around and reverses. In an instant, there is a bloody storm, and countless accounts are cleared.
I have repeatedly reminded of the risks of leverage and contracts in previous articles, but there are always many people who are not afraid of risks and hope to lick blood on the edge of the knife. Human greed always buries countless wealth and hard work in sudden surges or plunges again and again.
I remember that at the beginning of the year, Zhao Changpeng once mentioned that contract trading will be the key development direction of Binance this year to meet the trading needs of the majority of traders. Binance, which used to not trade contracts, has now embarked on this path and is running all the way. All three major exchanges have tasted the sweetness of contract trading without exception.
Such liquidations may become the norm in the future. I just hope we don’t fall into such traps.
Well, the story ends here. If you want to delve deeper into the cryptocurrency circle but can’t find a clue, you can check my homepage profile. I will share more relevant information and communication opportunities for free. Next, we will also lay out some other hot sectors to be compensated to lead everyone to enter the market to eat meat. Welcome to continue to follow up!
