Many traders got rekt this cycle, and here are three major reasons why:
1. Overleveraging and Liquidations Leverage trading has been a double-edged sword, especially with crypto's volatility. Many traders went all-in on long positions, expecting perpetual pumps. When sudden corrections hit, liquidations wiped them out. Exchanges thrive on liquidations, and this cycle was no different.
2. Chasing Hype Instead of Fundamentals Meme coins, low-cap altcoins, and "the next Bitcoin" narratives led traders into bad positions. Many jumped into projects with zero real-world utility, only to see their portfolios go to zero when the hype died. Smart money moved into Bitcoin, Ethereum, and high-quality projects while retail got left holding the bag.
3. Ignoring Market Cycles and Greed Every bull run follows a cycle—parabolic rise, euphoria, and eventual correction. Many traders refused to take profits, thinking the market would go up forever. When the inevitable correction came, they were trapped, holding assets that dropped 70-90%. The lesson? Bulls make money, bears make money, pigs get slaughtered.
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Comments
1. Overleveraging and Liquidations
Leverage trading has been a double-edged sword, especially with crypto's volatility. Many traders went all-in on long positions, expecting perpetual pumps. When sudden corrections hit, liquidations wiped them out. Exchanges thrive on liquidations, and this cycle was no different.
2. Chasing Hype Instead of Fundamentals
Meme coins, low-cap altcoins, and "the next Bitcoin" narratives led traders into bad positions. Many jumped into projects with zero real-world utility, only to see their portfolios go to zero when the hype died. Smart money moved into Bitcoin, Ethereum, and high-quality projects while retail got left holding the bag.
3. Ignoring Market Cycles and Greed
Every bull run follows a cycle—parabolic rise, euphoria, and eventual correction. Many traders refused to take profits, thinking the market would go up forever. When the inevitable correction came, they were trapped, holding assets that dropped 70-90%. The lesson? Bulls make money, bears make money, pigs get slaughtered.
I can't thank 'Crypto recovery team' enough. He literally changed my wife, my daughter, and my life forever.
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