#river Does the rise and fall in the cryptocurrency market really scare people?

Yes, those who have experienced it know, it can be utterly shocking........

Taking the classic example of Luna, if you have 10,000 Luna,

Yesterday when you went to sleep, it was worth 1 million USD, and when you woke up, it became 700,000 USD,

You might say, I've been in the crypto world for so long, a mere 30% retracement, UST only de-pegged by 10%,

I believe in DoKwon, so I went to sleep confidently again. The next day, when I woke up, it had turned into 10,000 USD, and at this point, you think it's already down 99%, it can't possibly drop any further,

Now if I buy the dip and it rises to 10 USD, that would be ten times my investment, I’d be delighted, so you sold everything and gathered 200,000 USD to buy 200,000 Luna,

At this point, you can't sleep, you are staring at it hoping it can go back up, but you can only watch helplessly as the price drops from 1 to 0.1 all the way to 0.000001 and finally gets delisted,

In the end, in three days, your 1.2 million USD assets shrunk to just enough for a breakfast. You are completely devastated.

Besides Luna, the cryptocurrency market has many differences from traditional financial markets: first, it operates 24/7 without rest; second, there are no price limits; third, the entry threshold is extremely low; fourth, there is rampant leverage usage; fifth, altcoin price fluctuations are boundless.

Especially when points three, four, and five come together, it’s not unusual to get rich one night and face liquidation the next.

Be cautious with leverage, everyone. You might think five times leverage is already low, but little do you know, there are days when fluctuations exceed 20% every year. Due to leverage, the more it drops, the harder it is to stop, ultimately leading to a chain liquidation,

Often, because the liquidation prices on-chain are crystal clear, large holders and even institutions can be targeted, while ordinary people suffer.