The recent wave of bitcoin liquidations highlights the dangers of leveraged trading in a volatile market. When traders overextend and borrow to bet on bitcoin's price, they risk significant loss when price fluctuations don’t favor their positions. The article advises against using leverage, recommending a long-term investment strategy where one buys bitcoin directly and maintains reasonable exposure to avoid panic selling during downturns. The author shares personal experience about the negative impacts of being overexposed and emphasizes the importance of emotional well-being alongside financial investments.
When you're overexposed to bitcoin, or if you're new to the market and you've gone all in on bitcoin, it's more likely that you'll panic sell if its price tanks.
Aiming to get rich quick with bitcoin is nearly a sure fire recipe for getting yourself rekt.
Even now that bitcoin has about a $2 trillion market cap, it's still a highly volatile asset.
It's much safer to just buy some bitcoin on the spot market and hold it for the long run.
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