When Bitcoin plummeted more than 16,000 yuan in a single day, nearly 3.7 billion yuan was harvested within a few hours. Xu Ning watched helplessly as a 30 million yuan contract was liquidated, collapsing to the ground in that instant, perhaps truly understanding the heavy meaning of 'In the cryptocurrency world, the difference between getting rich and being liquidated is just a thought.' In this market filled with wealth myths, some people earn a lifetime's salary in a single day with Dogecoin, while others see their investment in Gorilla Coin shrink from 100,000 yuan to 180 yuan just 20 minutes after buying. These two extreme twists of fate are merely a microcosm of the contract trading ecosystem.
The core attraction of contract trading lies in the leverage effect, allowing a small margin to control positions several times or even dozens of times larger, which causes individuals like Xu Ning to lose themselves in a bull market. When Bitcoin surged earlier this year, the temptation of the 'wealth code' led him to follow the trend and buy Dogecoin, Shiba Inu Coin, and other cryptocurrencies. When a day's earnings exceeded the total salary of many years, greed began to devour rationality. He was no longer satisfied with the stability of spot trading and instead plunged into high-leverage contracts, firmly believing that he could quickly achieve financial freedom this way. This mentality is not an isolated case; Ms. Yao also harbored the fantasy of 'making a fortune with little investment' when she bought Gorilla Coin, neglecting the essence of 'air coins' which lack any physical backing and practical value.
Leverage is a double-edged sword; while it amplifies profits, it also magnifies risks to the extreme. On the night of Xu Ning's liquidation, the 'Bitcoin waterfall' came unexpectedly, and the despair of having account funds wiped out in an instant is far more unforgettable than the ecstasy of making a profit. Data from the Bank for International Settlements shows that 75% of cryptocurrency traders ultimately incur losses, while the loss rate in contract trading far exceeds this number. This is because, in leveraged trading, the margin for error is extremely low. For example, with 10x leverage, a 5% drop in coin price leads to a 50% loss of principal. Once the maintenance margin is reached, forced liquidation follows, leaving no chance for recovery.
What is more alarming is the artificial manipulation traps behind the market. The operators of those 'air coins' create shell companies, spend money to design tokens, and then use celebrity endorsements and online live broadcasts to hype them up. Once the price skyrockets and attracts enough funds, they sell off en masse, pocketing the hard-earned money of investors. Dogecoin, Catcoin, Pigcoin, and other various types of coins are essentially a game of 'passing the parcel,' while the existence of contract leverage makes the harvesting speed of this game faster and its destructive power stronger. Ms. Yao and others know full well that investing in virtual currencies is highly risky, yet they still hope that they are not the last to be eliminated. This gambler's mentality is the key to being harvested.
The harsher reality is that the existing judicial practice in our country does not protect virtual currency trading contracts. Once faced with liquidation or fraud, losses can only be borne by the investors themselves. Xu Ning warned future generations after his liquidation: 'Do not touch virtual currency, do not use leverage, a single loss means you lose everything.' This is a lesson bought with 30 million in principal. When the bubble of wealth myths bursts, what remains is only a landscape of devastated accounts and endless regret. The dream of getting rich through contract trading in the crypto world has always been an illusion, while the harsh reality of liquidation is the true backdrop of the market.
Follow me @币圈罗盘 and next time I will take you through the underlying logic of contract strategies, helping you avoid detours and earn real money! #比特币流动性 $BTC $ETH
