The risk of investing in the cryptocurrency circle: don't let impulse ruin your Wallet

Folks, last night in the coin circle was a 'bloody storm,' with many people being tossed around by IP-related knockoff coins. Today, let's talk about why investing in popular knockoff coins and using stop-loss strategies is simply not effective. There are intricacies involved in this.

Let's first talk about the fees of popular altcoins, which are exceptionally high! The fees for most popular altcoins exceed 1%, generally staying around 2%. Take IP, Pi as examples, there are plenty of 'doing control' tricks involved. The so-called 'doing control', simply put, is when the platform uses investors' money to buy a large amount of spot goods, and then smashes them into the market all at once. At the same time, our opponents are not idle and are making moves on the other side.

Assuming there is a popular altcoin now, with a fee rate of 2%, holding 1000 units of 'short' positions, choosing 50 times leverage, settling fees every 4 hours or 2 hours, please note that the fee is calculated based on your 50 times leverage multiplied by 1000 units of position. Taking settling every 4 hours as an example, everyone may want to calculate. After deducting the fees round by round, how much of the initial 1000 units in your hands will be left? It's pitifully little! Therefore, in this situation, the boss behind the altcoin doesn't need to make much effort to pull or push the market. Just steadily replenish the counter market, stabilize the market. Just by deducting such high fees, a large number of 'short' positions have already been exhausted, while the 'long' positions, after receiving the fees paid by the opponents, see a slight price increase, and many people follow to increase their positions. In fact, this money is just circulating in the market, hardly flowing out much.

This leads to a phenomenon where when the fees of some popular altcoins reach as high as 1%, the more people short, the more the price goes up, provided that the boss of the coin tightly controls the chips and manipulates the market. We often see that a sudden surge in the price of an altcoin entices many to short, but the result is that the more they short, the higher the price goes, especially for those heavily controlled altcoins, whose trend completely defies common sense.

In the face of such altcoins that suddenly fluctuate up and down, they have always adhered to a cautious wait-and-see attitude and resolutely did not participate. Why? The stakes are too great! On the whole, if you have itchy hands and have to participate in this kind of altcoin investment, then you must not think that everything will be fine if you stop loss at the near point, you must at least be prepared to bear the risk of 50 times leverage liquidation, converted into a percentage, that is, - 5000% of the decline can be bearable, if you don't have this diamond diamond, don't take this porcelain work, and honestly stay away from these high-risk "pit money" altcoins. After all, our hard-earned money can't be wasted so easily, is this the reason why everyone says?
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