In the course of the last week, we have seen Bitcoin Mass Liquidations Reports.
For those who are not familiar with the term “liquidation” as applied to finance, it refers to when a merchant is forced to close an leverage operation because the margin for trade has exhausted.
In terms of daily plebean, it is when someone takes money to bet on the address of the price of Bitcoin and they are wrong, which results in losing the money they put through trade (or more, in some cases).
When it comes to exchange bitcoin with leverage, I take into account the first line of the publication below:
A fool and his leverage #Bitcoin They soon separate.
To quote one of my teachers, “up to 6% today, less 100% tomorrow.”@aartonop
To quote another, “#Notyourkeysnotyourcoins“
Be careful there. @michaeljburry You are right, there is a lot of hidden influence on #Bitcoin. WARNING VACOR.
– Caitlin Long 🔑⚡️🟠 (@Caitlinlong_) June 20, 2021
Therefore, the number one lesson to invest in Bitcoin is not to do it with leverage. (It is not financial advice).
Even now that Bitcoin has approximately a market capitalization of $ 2 billion, remains a highly volatile asset. Its price fluctuates remarkably in response to the news. Because of this, it is much safer to buy some bitcoin on the spot market and keep it long term (at least four years).
What is more, when and if you choose to buy some bitcoin in the spot market, consider remaining subxposed to Bitcoin instead of overexposed (those terms are subjective; interpret them as it will).
When it is overexposed to Bitcoin, or if you are new in the market and you have gone to Bitcoin, you are more likely to sell if your short -term price tanks.
How will you know if you are overexposed? It is likely to begin to lose sleep for him and/or be investing emotional energy in the hope that Bitcoin’s price will move in a certain direction (only above).
I share this based on experience. I was overexposed to Bitcoin in 2021-2022, I often felt sick because of that. Once I diminished my exhibition, I felt better and I could think more clearly.
Find an investment threshold with which you feel comfortable and, again, plan to keep in the long term.
With the aim of quickly getting rich with Bitcoin, it is almost a safe fire recipe to obtain Rekt.
Take it calmly and listen to the very wise advice of the legendary Bitcoiner Matt Odell: Stay humble, Stack Sats.
(The inverse of such advice of wise would be: being irrational, betting on Bitcoin irresponsibly).
Be careful there.
This article is a Carry. The opinions expressed are completely from the author and do not necessarily reflect those of BTC INC or Bitcoin magazine.
