I woke up very early today, and over the past couple of days, I received over a thousand in patent fees. I checked the bio and saw that sei and peaq dropped significantly yesterday, so I transferred eight SOL into Bitget to increase my position. Then, by some strange coincidence, I glanced at the contract list and saw a newly launched bombie contract. I had heard of this; it is a token for a chain game, and I think these are among the most worthless coins. So, I transferred three SOL into the contract account, thinking to short today and hopefully make some money, after all, I haven't made any profit from contracts this year.
Then, within half an hour, I lost nearly three thousand, and I directly stopped loss from 0.0015 to 0.0016. Since I always set a stop loss just a little before liquidation in every contract, I quickly withdrew the few hundred dollars that were left.
After losing, I really want to slap myself. Over the years, I have never made a profit on contracts. Whenever I have money, I easily treat the money like play money and lose it randomly. This thing is a negative-sum game; I have always known it, but I still can't help but open a position.
I also want to complain about other exchanges besides Binance. There is a reason why Binance can grow so large; among the exchanges I know of, it is the only one that can open perpetual contract cooling periods. The others have a maximum of one month. Exchanges mainly make money from contracts.
If exchanges could operate like the stock market, requiring a certain amount of assets and needing to apply offline to touch contract leverage, it would be great. There would be a lot fewer people losing everything. But I feel like that is still a long way off; at least they need to open up for regulation to be possible. I know many college students and even people in society who have lost everything or even gone into debt because of contracts.
Currently, I am preparing to take some actions to limit myself from playing contracts. I have been continuously DCAing Bitcoin and ADA for more than three years since I started, and I use a BTC cold wallet with a thirteenth word. I do not plan to open this cold wallet for twenty years unless quantum computers are able to crack the current encryption methods after 2030. By then, all chains will slowly start deploying new quantum-resistant algorithms, and I might consider switching wallets to store my coins or see how to manage them.
This way I won't at least touch the funds in these cold wallets. Now I am preparing to uninstall all exchange software except Binance, as they might make me touch contracts again, and I can view the prices of some purchased coins on other exchanges either on my computer or through the TradingView app on my phone.
I will download it back when I am ready to sell, trade, and then uninstall it again. This time I've lost less; every time this year, I've lost about ten thousand. Every time I lose in contracts, I don't regret the money too much afterward, just afraid that I will get too greedy and invest more money into contracts.
Like many people with some assets, as long as the majority is Bitcoin and there are physical assets, it's hard to become poor, unless one gets into contracts and throws all the money in.
In 2021, I met several people who got rich from FIL. A lot of people got rich from FIL that year, and the FIL mining machines sold out because mining machines require a large amount of staking, and they lock for half a year, which created a lot of buying pressure, pushing the coin price up. Then, the price rise made many people who wanted to make money buy mining machines to mine, and in the end, it was a left foot stepping on the right foot.
The price of FIL skyrocketed, and when the bear market began, the coin price plummeted. A large number of people who bought mining machines for mining were selling frantically. Once the staking ended, they sold. Mining machines themselves are not cheap, and in the end, the huge selling pressure caused a death spiral, but no one expected it to drop from 200 to 2.
Originally, even if a person with tens of millions in assets shrank by 90%, selling it would still allow them to live comfortably. So why do some people I know end up in debt?
When FIL dropped below 30, many people started bottom-fishing, and many felt it had dropped enough or were eager to break even, choosing to use long contracts to bottom-fish. In the end, they gradually held their positions, eventually borrowing money to hold, and when it dropped to 2, everyone was left with nowhere to go. FIL, which actually has a decent fundamental background, is now really dead; the selling pressure is just too great.
It was also from that year that I saw too many people's ups and downs, and I started my monthly investment journey in BTC. The amount of cryptocurrency assets I hold in BTC is always more than half, and when altcoins soar, I will slowly switch back to BTC.
And I almost never use large funds for contracts because I don't think I can beat others and the exchanges. Every small gamble is just a sign of my addiction. I can accept losses, but I won't let myself become poor.
It has been almost an hour since I finished typing the above words. BOMBI has dropped back to about 0.0014, so I smiled and went to have breakfast.
Stay away from contracts, friends. Just blacklist anyone who gets you into contracts. I don't know if contracts will make you rich, but at least not doing contracts won't make you lose all your money.
The above content does not constitute investment advice!
I am Xiaofei, nice to meet everyone. Xiaofei focuses on Ethereum contract spot ambush, and the team still has positions available, come join us to become the dealer and also the winner.#ETH走势分析 $ETH$BTC
