The cryptocurrency world is never short of "trading gurus". They wave the banner of "making you rich" and share "profit screenshots" on social media platforms, attracting countless investors to follow their lead. However, behind these seemingly glamorous "gurus" often lie traps designed to harvest retail investors. Many investors, blindly following the trend, quickly fall from being "profit believers" to "liquidation victims", shattering their dreams of wealth while their principal is swept away.
"Guru-led trading" is the most common harvesting tactic in the cryptocurrency world. These "gurus" typically attract followers with false profit screenshots, then establish paid WeChat and QQ groups, claiming that "as long as you follow their trades, you can easily double your money". They recommend contracts for niche cryptocurrencies, using retail investors' funds to drive up prices and create the illusion of profit. Once retail investors flood in, they secretly sell off, leading to a crash in coin prices and forced liquidations for retail investors. When Xu Ning first entered the cryptocurrency world, he followed a "teacher" to buy Dogecoin and Shiba Inu, and although he made money initially, this habit of blindly following trends laid the groundwork for a subsequent tragedy of a 30 million liquidation. When the "teacher" recommended high-leverage contracts, he invested all his funds without doubt, ultimately becoming a "victim" of the market.
The spread of 'profit myths' has further intensified the atmosphere of blindly following trends. The crypto circle is a market where information spreads extremely quickly; news of an individual making a fortune through contract trading will circulate throughout the entire circle in a short time, prompting more people to follow suit. However, these 'profit myths' are often one-sided, only showcasing the profit side while concealing the truth about losses. A 'trading god' once claimed to have turned 100,000 yuan in capital into 10 million yuan in a month using 100x leverage, but in reality, he had already experienced over ten liquidations before this, and this profit was merely a matter of luck. Ordinary investors only see the superficial brilliance while ignoring the underlying risks, blindly following trends and increasing leverage, with predictable results.
The essence of blindly following trends is the lack of independent market judgment abilities. Many investors enter the crypto circle without learning trading knowledge or studying market rules, completely relying on others' advice to trade. They cannot distinguish between 'real investment advice' and 'harvesting tactics', making them easily misled by false information. For example, when a 'trading god' claims 'a certain cryptocurrency is about to skyrocket, hurry and buy with 50x leverage', they will invest funds without hesitation, not realizing that this cryptocurrency might be a 'pump and dump' with underlying manipulation risks. This behavior of following trends without independent judgment is tantamount to suicide in contract trading.
To avoid becoming a 'follower who is liquidated', investors must cultivate independent market judgment abilities. First, they should systematically learn the basics of contract trading, understand the leverage mechanism, margin system, stop-loss and take-profit strategies, and other core content; second, they need to learn how to analyze market trends, combining technical analysis and fundamental analysis to make rational trading decisions; finally, they must refuse to blindly believe in 'profit myths' and remain vigilant against any 'signal trading' behavior. There are no so-called 'trading gods' in the crypto circle, and any claim of 'guaranteed profits' is a scam. The difference between getting rich and being liquidated lies in whether one can maintain independent thinking and refuse to blindly follow trends. Only by relying on one's own judgment and abilities to trade can one truly safeguard wealth in this market.
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