Stories in the currency circle: 120 million warehouses exploded in 3 hours

A trader opened a contract around 2 am on the 20th and posted the following testimonial on Weibo:

"The essence of trading is the test and constant challenge of self-humanity, and the market is the judge. He has seen mountains and seas, crossed mountains and seas of people, experienced extreme pain and madness, and experienced countless ups and downs. I am far more difficult than beating the market. I am tired of repeating this day and night. Whether it is heaven or hell in the end, it is doomed from the first moment you step into this market. With 18 million US dollars and more than 120 million yuan, bet on So, speed up this process and let the answer be revealed as soon as possible."

The anxiety and inner torment revealed in this description have made this trader completely lose his mind. Even if the market does what he wants this time and can make him a fortune, I believe his wealth will return to the market after all.

About 3 hours later at 5 o'clock, the user's more than 100 million funds were all liquidated.

I think this kind of liquidation case is definitely not the only one in this big waterfall. According to statistics, within 24 hours, the entire network exploded 5 billion yuan.

There are many rumors on the Internet about this catastrophe, and some say it was because Binance stopped withdrawing coins for system maintenance...

Regardless of the real reason behind this catastrophe, as ordinary investors, we should have a basic line of defense to protect ourselves against various risks in this turbulent market.

First of all, we must have a clear understanding of the investment market.

For most domestic investors,In addition to facing various internal and external risk shocks like all investment markets, the digital currency investment market also has a very special feature, that is, it has almost no risk warnings and restrictions.

Now the leverage of exchanges is as high as 125 times. Such a high multiple is unimaginable in the traditional regulated investment market.

The exchanges have seen that it is extremely difficult for human nature to resist greed, and in the game between exchanges and traders, greed will always kill traders without exception and make the exchange infinitely profitable.

Therefore, the exchange holds out all the ways to stimulate human nature. Human nature is completely exposed to such stimuli, and if one is not careful, all previous efforts will be wasted.

In this market, the vast majority of traders are the meat on the chopping board, the ones waiting to be slaughtered.

Whenever the market continues to improve for a period of time, traders' bullish sentiment rises, and impulsive traders will place heavy bets and increase leverage to buy more; and when the market continues to decline for a period of time, As the bearish sentiment of traders accumulates, there will be traders who bet heavily and sell short with leverage.

Just when traders placed heavy bets, dreaming that the market trend would continue to move in the direction of their bets, the market turned around, and in an instant, there was a bloodbath, and countless accounts were cleared.

I have repeatedly reminded of the risks of leverage and contracts in previous articles, but there is no fear of risks, there are always people who want to lick blood, and the greed of human nature is always suddenly rising or falling again and again Countless wealth and painstaking efforts were buried in it.

I recall that at the beginning of the year, Changpeng Zhao once mentioned that this year, contract trading will be the key development direction of Binance 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 wildly all the way. Without exception, the three major exchanges have tasted the sweetness of contract trading.

I am afraid that liquidation like this will become the norm in the future. We only hope that our readers will not fall into such a trap.