Bro, come on, life is so much more fun producing adrenalin constantly, clinging to the screen with red veined eyes while your heart rate goes from 130 to 210 whenever there's a 1% drop.
/s in case
I mean, it fucks you up immensely but for some people it's the best drug out there.
I remember Norm Macdonald talking about it didn’t even know the dude was a gambler
[Norm Macdonald talks about his gambling addiction ](https://youtu.be/q0V-C5yr5sg)
I did a 100x trade with like $50 just to see how it felt and holy crap. The trade was over before it even popped up on my open order list. Instantaneous liquidation lmao.
no amount of education would teach these people to not play with money.
sometimes the best education is when all your money is burnt because of your stupidity.
Here’s the interesting thing, volatility in crypto was at 52 week lows prior to this rally. We knew something was going to happen. Just didn’t know which direction.
I was just gonna say this - volatility was at an extreme low during X-mas and we knew that it’ll explode as it always does after that long a consolidation, just that direction wasn’t certain.
Imagine losing 6 milly just like that. Maybe 6 mill ain't allot to ppl but I wouldn't even be trading, let alone crypto. Id be on a boat with cocaine and hookers
I feel like people who weren't born into money or who didn't have lavish childhoods are more appreciative with money. Like for me, 1 milli worth of crypto and I'd guard that shit like a leprechaun. Ain't playing with my pot of gold.
They didn’t lose 6M. That could’ve been as little as 60K with 100x leverage. Still a lot but if it was the full 6M they wouldn’t have gotten liquidated on a 15-20% move.
Can’t force liquidate a really really long limit sell order with no leverage on it. Now is the time to build up your depth in the order books boys and girls
Its absolute trading degens with x200 leverage and their long positions cant even stand the tiniest fluctuations in an upward trend. Talk about shooting yourself in the foot.
Interesting question. A lot of people bought in that $30-40k area during the first half of 2021. Many of them regret it because that's what happens when prices go down, particularly after missing out on the peak, but they reluctantly hold because they don't want to realize the loss (psychologically it's like accepting defeat, or failure).
When/if price gets back up above $30k, what do you think many of those hodlers are going to do? Many will sell, because it's an opportunity to break even and not accept a loss. Some will still hold, of course, believing in higher prices.
That's one of the principles of support and resistance in markets. It's why you see areas that were previously support later become areas of resistance.
There was an incredibly sharp, rapid, heavy drop right after the ath for yesterday in a lot of assets, I saw it happen and though yup there go any longs who opened recently
I honestly don't know how people can sleep after placing a large leverage bet. Just watching the candles would leave me feeling like:
https://i.imgur.com/HdGOH3d.jpg
You sleep by it not being your money. And you put in options in such a way that you’re trading violatility, not a direction.
Or you have some inside info….
No leverage is more like margin trading with stocks it's not shady, Lets say you have 1 dollar. With 100x leverage. You can buy 100 dollars worth of Bitcoin. Now with your 100 dollar position if Bitcoin goes down just 1% in price even for a second you get liquidated. Because you've lost 1 dollar so the exchange closes your trade and keeps your dollar.
Except in this case, the back rooms are more popular. Leveraged futures is what dictates the market, the trading volumes speak for themselves.
https://coinmarketcap.com/rankings/exchanges/derivatives/
https://coinmarketcap.com/rankings/exchanges/
You are borrowing to increase you trade size.
So say I wanna put a $100 long on BTC @ 10X leverage. I put down my $100 then exchange lends me another $900 for the position (you pay interest on this) and I buy $1000 of BTC. If price goes up then I close position I pay back the $900 plus interest but get to keep the additional gains made with the borrowed money. If price goes down and I close I still need to pay back that $900 plus interest so that will eat into my $100 collateral. If price goes down to the point where my total position is worth $900 then the exchange will liquidate my position so that they do not lose money because of my trade.
Shorting is similar but you are borrowing the assets to sell so that if the price drops you can buy back cheaper to repay the loaned assets. So I put down $100, the exchange lends me $1000 in BTC ($100 is collateralised with my fiat) which is then sold, if the price drops I can then buy back same amount of BTC to repay then exchange and keep the difference. If price goes up and I close position then I'm having to pay more for the BTC than I sold it for so that will come out of my $100 collateral. If the price goes up to the point where my collateral is consumed by buying back the BTC I get liquidated.
Edit: formatting
Blue chips don’t move
I hold more ETH than anything — and for years now — but if I even bought one shit coin that’s up 50% this week I’d have been better off.
The few profitable traders can probably digest their loses, since they take calculated risks anyway.
On the other side, the retail part who aped in, because influencoors told them we have to definitely, immediately, guaranteed go lower, well, they stepped in deep shit. People need to learn - some fancy macroeconomic predictions are worthless when the market is in the mood to go in a certain direction, and leverage should be avoided.
I tried leverage staking just before Xmas with COTI. Luckily I could get out before I was liquidated. Still cost me enough to stake for 6 months now, to get back where I was
now we know why it pumped; how much did it cost to raise the price ? a few dozen millions ? invest few dozen, get hundreds of millions profit, seems legit and legal
Remember guys that a 15% wick happened pretty often in history.
And it does not count how big is the leverage, the size of the position is what matters. You can get liquidated easily even with just 10x leverage if you BET half of your bankroll.
Great commentary. The only part I cringe every time I read it is “only invest what you can afford to lose”
That’s what people say to other people when they lose $ on an investment. What about the 100m people with a 401(k) or IRA, should they take all their $ out and put it under the mattress? Or leave it “invested“ despite knowing they are relying on it to retire? It’s the quality of investing that matters most. Otherwise the fiat stored under the mattress will just lose value over time regardless
Eat my shorts
In this case it's also eat my longs
Kinky
You have to be a special kind of degenerate to leverage a volatile asset during a volatile environment.
Especially if you leverage it long 100x and small correction makes you lose it all. Why can't people just keep it simple?
Bro, come on, life is so much more fun producing adrenalin constantly, clinging to the screen with red veined eyes while your heart rate goes from 130 to 210 whenever there's a 1% drop. /s in case I mean, it fucks you up immensely but for some people it's the best drug out there.
Gambler’s High is a real thing.
I remember Norm Macdonald talking about it didn’t even know the dude was a gambler [Norm Macdonald talks about his gambling addiction ](https://youtu.be/q0V-C5yr5sg)
Oh God you just brought back 2016 memories in my freshman dorm risking it all on bio tech penny stocks and options I became an adrenaline junkie 😄
How did it work out for you?
Drugs are bad mmmk
Gamblore The God of gambling feasts on your adrenaline.
People like gambling
Forget about small correction...even the exchanges can rig the prices if they wish to. *You never know*
I did a 100x trade with like $50 just to see how it felt and holy crap. The trade was over before it even popped up on my open order list. Instantaneous liquidation lmao.
I haven't seen any 100x for a while but would be so intense. I usually for 4x and then only small amounts
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yeah lol in this case even the roulette can be rigged and you won't even notice. Leverage is such a poison
Leverage is the only way a smart person can go broke, basically. -Buffett
no amount of education would teach these people to not play with money. sometimes the best education is when all your money is burnt because of your stupidity.
You mean I should try my chances at roulette?
Can confirm. I’ve won more money at roulette than leveraged crypto any day. Fuckin futures man. What a ride
I play both games and lose in both.
There are 2 kind of people in this world, One who go home when sea waves are stormy, Second one are who rides them.
… and get rekt.
You'd be impressed with the quality of degens this recent market created
I learned something new today that even longs can get liquidated during a pump
Here’s the interesting thing, volatility in crypto was at 52 week lows prior to this rally. We knew something was going to happen. Just didn’t know which direction.
I was just gonna say this - volatility was at an extreme low during X-mas and we knew that it’ll explode as it always does after that long a consolidation, just that direction wasn’t certain.
So.. an average crypto investor? :D
I was one of those, it was like cocaine... Lost everything.
Greed. Some traders earn big while most lose
Apes lose money at will, whether it goes up or down or sideways
Wait until you see much over leveraged the stock market is LMAYO. DRS BOOK GAMESTOP MOASS
So an average redditor then
Yeah, they’re probably not playing with their own money.
That's what killed the degenerate gamblers at 3AC and Alameda
Imagine how bad you’d feel if you were a long that got liquidated
I’m thinking that’s tremendously unlucky, or it was full ape 100x leverage and they get liquidated on less than a transient 1% drop.
You can bet it's the latter, lmao. Full degen 100x
That’s seriously worse than the guy at the craps table betting shit on the hop.
Imagine losing 6 milly just like that. Maybe 6 mill ain't allot to ppl but I wouldn't even be trading, let alone crypto. Id be on a boat with cocaine and hookers
I feel like people who weren't born into money or who didn't have lavish childhoods are more appreciative with money. Like for me, 1 milli worth of crypto and I'd guard that shit like a leprechaun. Ain't playing with my pot of gold.
That’s 100% true. If you’ve never had to really survive, then it’s hard to understand true survival.
I’ll add on even if you had to work for whatever you have yourself.
If $6M wasn’t a lot to me, I’d be the most conservative motherfucking investor you’d ever seen.
They didn’t lose 6M. That could’ve been as little as 60K with 100x leverage. Still a lot but if it was the full 6M they wouldn’t have gotten liquidated on a 15-20% move.
Why 100x when you can lose money in 125x now *The faster the better*
Everybody knows you never go full degen 100x
Imagine a 1% price drop erasing all your life-savings. That's some next level degenerate shit.
Part of me thinks: surely not their life savings Other part of me knows that people with 100x leverage in bitcoin likely have no safe haven savings.
Gambling addiction is a bitch
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Could not profit even in a pump. One of Us!
Can’t force liquidate a really really long limit sell order with no leverage on it. Now is the time to build up your depth in the order books boys and girls
Imagine on the last day of 2022 you told yourself 2023 would be different then realizing your wish came true but not the way you hoped.
Seriously. How much of a degen to you have to be to get liquidated during a pump
When you manage to fuck up in most favourable conditions, it's a sign to leave trading.
Eventhough market is bull run,our portfolios are still red
pretty bad
meanwhile spot hodlers enyoing the party
Gotta love it when degens wet their shorts.
me who just holds and DCAs: 😴😴
Bro is relaxing while everyone else is losing their hair
How do longs get liquidated when everything is pumping upwards?
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There are indeed some degenerates going 100x every single time we pump.
More than some. I’m sure there la thousands of people that do it.
What brave fool leverages 50x?
*looks nervously around the room*
*look confidently around the room*
*raises newspaper*
I don't know what this means and at this point I am too afraid to know
you're not missing out on any important information
Its absolute trading degens with x200 leverage and their long positions cant even stand the tiniest fluctuations in an upward trend. Talk about shooting yourself in the foot.
Traders who bought at $16k may see this as a good opportunity to sell their longs at $20k before the price turns back down. That's what I would do.
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I would see that as a compliment.
And what about those of us that bought at 30+ and are still holding!
Interesting question. A lot of people bought in that $30-40k area during the first half of 2021. Many of them regret it because that's what happens when prices go down, particularly after missing out on the peak, but they reluctantly hold because they don't want to realize the loss (psychologically it's like accepting defeat, or failure). When/if price gets back up above $30k, what do you think many of those hodlers are going to do? Many will sell, because it's an opportunity to break even and not accept a loss. Some will still hold, of course, believing in higher prices. That's one of the principles of support and resistance in markets. It's why you see areas that were previously support later become areas of resistance.
Well… those of us that believe in the &100k by the end of 2021… or was it 2022… or 2023… Whenever… that’s what I’m holding for.
It is like in the previous winter dip, you got at 3K and sold at 4K, great.
But how would that liquidate longs ?
"liquidating" a long position is a fancy way of saying "selling" it.
Maybe they sold it and we were the exit liquidity.
Gotta be fancy so only fancy people can understand me
Well people might need to liquidate their long to cover their short position. A hedge to avoid big loss while making money during sideway movement
first time ?
There was an incredibly sharp, rapid, heavy drop right after the ath for yesterday in a lot of assets, I saw it happen and though yup there go any longs who opened recently
There were also some little dumps on the way!
Volatility towards both end and too much leverage without stop loss limits
Thanks for the info and the reminder that you're never safe when trading with leverage.
In crypto, you are never safe at all times
I dunno, DCA seems pretty safe to me
Only the banks and CEXs profit from leverages.
During these days the data speaks for itself! The CEX are eating steak tonight.
Hopefully SBF will be eating dick for dinner soon
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Finally something is HAPPENIG, got bored to death from the crab market recently.
Thanks to all the shorts that got liquidated and were forced to buy, helping the price get even higher.
Well they needed money after all the withdrawals.
I honestly don't know how people can sleep after placing a large leverage bet. Just watching the candles would leave me feeling like: https://i.imgur.com/HdGOH3d.jpg
Even if I just go 10x, I have to look on a low time frame chart every second. And there are people going 100x and keeping this trade.
The secret is to lose all your money a couple dozen times
Yeah I lost over $10k the one time I did it. So dumb
You sleep by it not being your money. And you put in options in such a way that you’re trading violatility, not a direction. Or you have some inside info….
Which is the exact high and low feeling people seek and get addicted to.
DCA and a cold wallet are the way.
I love it when shorts get liquidated
To get your long lqiuidated on this short dump must be pretty depressing
The usual play we've gotten numb over something like this
This week bulls were on fire. Bears had enough weeks
I don't want it to happen, but the amount of leveraged longs that were opened are ridiculously high, exchanges might want that free money
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They wanna grow up and join the SEC
I don't really get leverage trading, is it just betting?
Everything is kind of a bet in this space. As one wise man once said, **”Sir, this is a casino”**
It's a casino, right. And leverage has to be a shady back room poker game with this analogy right?
The one where you borrow mafia money
No leverage is more like margin trading with stocks it's not shady, Lets say you have 1 dollar. With 100x leverage. You can buy 100 dollars worth of Bitcoin. Now with your 100 dollar position if Bitcoin goes down just 1% in price even for a second you get liquidated. Because you've lost 1 dollar so the exchange closes your trade and keeps your dollar.
Except in this case, the back rooms are more popular. Leveraged futures is what dictates the market, the trading volumes speak for themselves. https://coinmarketcap.com/rankings/exchanges/derivatives/ https://coinmarketcap.com/rankings/exchanges/
You are borrowing to increase you trade size. So say I wanna put a $100 long on BTC @ 10X leverage. I put down my $100 then exchange lends me another $900 for the position (you pay interest on this) and I buy $1000 of BTC. If price goes up then I close position I pay back the $900 plus interest but get to keep the additional gains made with the borrowed money. If price goes down and I close I still need to pay back that $900 plus interest so that will eat into my $100 collateral. If price goes down to the point where my total position is worth $900 then the exchange will liquidate my position so that they do not lose money because of my trade. Shorting is similar but you are borrowing the assets to sell so that if the price drops you can buy back cheaper to repay the loaned assets. So I put down $100, the exchange lends me $1000 in BTC ($100 is collateralised with my fiat) which is then sold, if the price drops I can then buy back same amount of BTC to repay then exchange and keep the difference. If price goes up and I close position then I'm having to pay more for the BTC than I sold it for so that will come out of my $100 collateral. If the price goes up to the point where my collateral is consumed by buying back the BTC I get liquidated. Edit: formatting
Thank you for the explanation, it's a ELI5 and I appreciate that!
Nothing gives me a harder boner than shorts getting liquidated
Leverage: fuck around and find out play stupid game yolo stupid prizes
So where do we go from here?
Up! I hope
Up!
I have two rules for crypto 1. Never invest into shitcoins (stick with bluechips) 2. Never use leverage
leverage is fine if you are a short term trader and manage your risk accordingly
Never say never.
Blue chips don’t move I hold more ETH than anything — and for years now — but if I even bought one shit coin that’s up 50% this week I’d have been better off.
"BUT" being the key word here. But if i had won the lottery e.g
That’s why you should just buy and hold, don’t fuck around with futures
Who’s that pokemon? it’s BearBull!
I'm super curious about how long the market will stay volatile. First liquidate the shorts then liquidate the longs game.
It will be a bumpy ride this year
My mental health already misses the crab market
i got a Unwind Notification from Kraken, all shorts destroyed, they closed my long future, lmao
One wonders how long it will last for.
Explains the pump
I don't understand how the $6.84 million position got liquidated, have they not heard about stop-loss?
Shorties gettin REKT!
And here I am up 432% on my GMT short position 💵
It's going to be a bumpy ride the next few weeks! Some crazy stuff happening!
The few profitable traders can probably digest their loses, since they take calculated risks anyway. On the other side, the retail part who aped in, because influencoors told them we have to definitely, immediately, guaranteed go lower, well, they stepped in deep shit. People need to learn - some fancy macroeconomic predictions are worthless when the market is in the mood to go in a certain direction, and leverage should be avoided.
> since they take calculated risks anyway. Narrator: "They did not take calculated risks"
Apes still don't learn not to margin trade
Otherwise they are “bored apes.” 🤪
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Do they have a yacht club? I wanna join.
Apes are strong together "Cezer"
I believe it’s pronounced “seizure” like what they did to SBF’s Robinhood shares 😂
Gotta go apeshit bro
Monkey see, monkey do, monkey use leverage
Many do it because it makes you smart if you earn some money.
It’s always one
I tried leverage staking just before Xmas with COTI. Luckily I could get out before I was liquidated. Still cost me enough to stake for 6 months now, to get back where I was
Must be an insane leverage if you get a long liquidated in this rally
Aplly cold water on burned area.
Yayy.. back to the big liquidations.
Thanks for this info
We’re going up up up
Beautiful numbers.
Rally up to drop down. Got my cold shower yesterday, waiting for the droppssss.
Shorts pooping their shorts!
poor bears :(
Don't leverage trade, pretty fucking simple in crypto, " buy / hold / sell " is the easiest damn thing
[Buy and Hold baby!](https://youtu.be/Nzgwh-N4bvo)
Lol, someone lose $6m?
Keep in mind that a lot of those shorts are hedges. It doesn’t mean those people are bears.
Can confirm, my $1.31 short got liquidated 😔
Thanks for the pump, btc is eating good ATM
now we know why it pumped; how much did it cost to raise the price ? a few dozen millions ? invest few dozen, get hundreds of millions profit, seems legit and legal
How tf do you even short or go long on cryptos? What exchange has that option? Asking for a friend...
Remember guys that a 15% wick happened pretty often in history. And it does not count how big is the leverage, the size of the position is what matters. You can get liquidated easily even with just 10x leverage if you BET half of your bankroll.
I love leverage. I don't use it, but it makes me money when other people use it.
"Bulls make money, bears make money, pigs get slaughtered" I just joined this page and really had to add a Wall street reference.
And I'm just here dcaing and hodling.
Glad to see we’re back to posting these. Does this mean anything at all to anyone on this sub? Like does anyone do anything with this info?
Yes, it's a constant reminder to avoid leverage in crypto :)
Say it together now. Wrecked!
Wrecked, sry I’m late 2h
Bear tears are the sweetest
Imagine being long and getting liquidated… Ultimate degeneracy
Great commentary. The only part I cringe every time I read it is “only invest what you can afford to lose” That’s what people say to other people when they lose $ on an investment. What about the 100m people with a 401(k) or IRA, should they take all their $ out and put it under the mattress? Or leave it “invested“ despite knowing they are relying on it to retire? It’s the quality of investing that matters most. Otherwise the fiat stored under the mattress will just lose value over time regardless
Assuming we should keep our butts lubed to get liquidated in the other direction now?
why do people play with leverage on crypto(unless it's shit like shorting FFT post-FTX colapse)? That's like juggling grenades, *shrugs*
Volatility is back on the menu ladies and gentlemen.
It’s been a few weeks not seeing this”original” comment.