|
|
Some say that the cryptocurrency sphere is the most challenging test of human nature. Greed, timidity, ignorance, blind obedience, arrogance, self-conceit, and more are all laid bare in this virtual currency trading arena.
I. Arrogance
In the early days, when Bitcoin emerged as a novel phenomenon on the internet, people could obtain Bitcoin through various methods. Some were enthusiastic about researching and discussing this novel thing, while many others dismissed it.
It's well known that 10,000 bitcoins were once exchanged for two pizzas, marking the earliest real-world application of virtual currency trading. From its initial value of $0.0025, Bitcoin has experienced numerous ups and downs, skyrocketing to $40,000, a staggering increase of 16 million times. In other words, Bitcoin's growth surpasses all other investment options, making it the easiest way for the poor to climb out of poverty compared to investing in stocks, real estate, and other assets.
Unfortunately, despite many people acquiring Bitcoin in various ways during that time, they did not take virtual currency seriously, failed to seek relevant knowledge, and did not store it carefully. Instead, they left it casually aside or even discarded it, missing out on a potential windfall. As I write this article, Bitcoin has risen from $43,000 to $47,000 in the past month.
II. Timidity
Unlike the stock market, the cryptocurrency market has no trading halts or circuit breakers. This means that the prices of virtual currencies fluctuate continuously, potentially skyrocketing or plummeting to zero.
Faced with a coin showing an upward trend, are you willing to determine that the coin has not reached its peak and still has room to rise? Are you brave enough to buy more when it hits the bottom?
When the value of your coins in hand drops, can you remain calm and hold onto them without selling? If the market continues to decline, will you consider cutting losses and withdrawing in a timely manner? Most people have their jobs and only engage in cryptocurrency trading as a hobby, lacking sufficient knowledge to navigate the ups and downs of the crypto market, inevitably leading to timidity.
III. Greed
The most common manifestation of greed in the cryptocurrency sphere is leveraging contracts. Leverage of tens or hundreds of times can be considered one of the fastest ways to get rich in the crypto world. However, I sincerely advise against playing leveraged contracts because the risks are incredibly high. As the saying goes, "The bigger the waves, the more expensive the fish." High risk comes with high returns. Regarding the level of risk, it can be said that the majority of those playing leveraged contracts end up losing. Can you control your greed and only play with spot trading? Similar to the real estate speculation with loans in the past, some people in the current crypto world are borrowing to speculate on Bitcoin. There are individuals in the crypto sphere who, as faithful Bitcoin believers, are willing to sell their assets, or even take out loans, to bet on Bitcoin, preserving only the bare minimum for their livelihood.
IV. Ignorance
We all know that doing business involves buying low and selling high to make a profit. In the cryptocurrency sphere, most retail investors lack professional knowledge and essentially rely on intuition for buying and selling. It can be said that a significant portion of people are blindly trading, even buying at high points and selling when they can't wait for a rebound. Many beginners like to engage in frequent short-term trading, completely unaware that accumulated transaction fees can be a significant expense.
V. Blind Obedience
The cryptocurrency sphere does indeed have various investment risks and traps, including false advertising, market manipulation, and fraud. Before investing, it's best to do thorough research, choose reputable platforms and projects, be cautious about high return promises, and maintain risk awareness. |
|
Post time 25-2-2024 04:25:48
