Unlike the previous Bitcoin bull market, this time many people who are afraid of missing out choose to speculate with high leverage. Recently, I have seen similar large-scale liquidations on social media every day.

But even so, countless people still engage in high-leverage contract trading every day. Of course, their end result is often a margin call.

Strictly speaking, this round of digital currency bull market actually started at the beginning of 2024. Friends who follow me are also very clear that I started to be bullish on BTC at around 20,000. During this period, I have always said not to touch A-shares, it is better to buy BTC.

Moreover, we can easily find from the Bitcoin trend chart that Bitcoin has undergone several technical adjustments since it started to rise in January last year, but the adjustment ratio has not exceeded 25%.

In other words, as long as you exaggerate a little and use a low leverage of 2-3 times, you can magnify your returns to 500-1000% without worrying about a margin call.

But just recently, Bitcoin fell from 72,000 to 60,000. With such a drop of less than 20%, many people lost their entire fortunes.

The reason is simple: high leverage was used.

Every year, news reports highlight Bitcoin margin calls as evidence of high risk. But the problem is, if you use 10x or 20x leverage, what risk-averse investment can you achieve? All I can say is that Zhang Xuefeng was right once again.

I think any domestic home buyer now has a 30% down payment, which is a naked 3x leverage. Theoretically, if the house price drops by 30%, you will lose your money. In other words, almost all the buyers who bought at high prices between 2018 and 2021 have now lost their money!

But does anyone care about the risks these homebuyers face? No. The rabble, led by these sleazy writers, simply repeats the rhetoric of “Bitcoin is risky” and “investing in Bitcoin will lead to people jumping off buildings.”

As for the purely leveraged speculative market such as the domestic commodity futures exchange, over the years there have been myths of overnight wealth such as Fu Haitang, as well as countless retail investors and professional investment funds that have gone bankrupt. After all, if they don't lose money, who will provide hedging for the spot holders?

I have suffered from leverage before. My wealth, which once reached as high as 16 BTC, has shrunk greatly. Moreover, I am afraid of losing money when hoarding coins. Now, apart from the few BTC I have on a mobile phone that is not connected to the Internet, I also have a small account with tens of thousands of dollars to play with and to provide for my daily expenses.

I was already short at the beginning of this round of decline, and put all the USDT into OKX's financial products. At the highest point, it could give an annualized return of 48%. Although it has now dropped to 1%, at least some profit is better than losing money.