People with millions of dollars on their exchange balance, why do you risk?

[shield132]

There are rumours in my country, which I believe is not true, that 2000 people committed suicide after crypto crash and I've bookmarked lots of tweets that was shared on a local crypto group but I'm thinking about, those people who have millions of dollars on their exchange balance, why do they risk and trade with their whole capital with a high leverage? You can't get liquidated when the price goes from 120K to 100K if you don't use a very high leverage. The crypto market saw more than $19 billion in liquidations across leveraged positions just a few days ago. This isn't normal, especially when Trump manipulates the market as he wants.

[OmegaStarScream]

I personally don't understand why would people take the risk of doing leveraged trading to start with, as opposed to just do spot trading, let alone placing positions worth millions of dollars that could get liquidated with a flash crash... but I guess to each their own. Besides, when you make money (obviously not everyone in the space) easily and from memecoins, etc. you don't really develop that "risk management" mindset.

And by the way from my understanding, the 19 billion dollars were just the reported one (because Binance's API does not report everything?). It's probably ten times  higher.

[Wiwo]

Pointing to an individual figure as the sole market manipulator is somewhat bringing bitcoin and the entire cryptocurrency market under one central figure and his actions, regardless of his political position, yes the United States and China tariffs crisis have caused alot of stocks to lose significantly and cryptocurrency is not entirely out of that wave, but the truth is that Trump actions alone may not be the reason for the huge dump in the price of most cryptocurrency assets.

Back to reason traders leave thousands of dollars on their trading account and why they often us high leverage, the answer is greed, when someone decides to be so greedy and overconfident onna particular trend, they can take such actions to use huge amount and with high leverage.

We have various whales in trading those whales combined actions is qhat most time shake the market real quickly like what we saw few days ago.

[Oshosondy]

The main reason is because they do not know where they are coming from but they want fast means to earn money. That is the reason they are using high leverage to trade. And at the end, they are losing.

I am posting from what I experienced myself until I decided to think otherwise that high levegege trading is not worth it at all. It only give false sense of money making.

[Asiska02]

There are rumours in my country, which I believe is not true, that 2000 people committed suicide after crypto crash and I've bookmarked lots of tweets that was shared on a local crypto group but I'm thinking about, those people who have millions of dollars on their exchange balance, why do they risk and trade with their whole capital with a high leverage?

Too much of confidence in their strategy is what has made many traders loss their money and some had to commit suicide because of the big losses they faced after the big crash of the market. They failed to understand that the market is always volatile and no trader is 100% perfect with their strategy, losses are part of the market that cannot be avoided but can be controlled to a limit you can absorb at a time.

You can't get liquidated when the price goes from 120K to 100K if you don't use a very high leverage. The crypto market saw more than $19 billion in liquidations across leveraged positions just a few days ago. This isn't normal, especially when Trump manipulates the market as he wants.

As long as Trump remains the president and is still actively influencing the world economy, more of this are going to come and we will face some liquidations in the future again. It is important that we play safe henceforth when trading because we never can tell when a crash will come. Only insiders gets that information and not you and I who are not insiders to know of the government policies.

[GhostRider25]

They do it out of greed and ignorance.
They get drunk off the sirens call of get rich quick in the comfort of your own wank chair!!!  This is fueled by the scammers all over yt and the likes telling them how easy it is to be a billionaire.

Greed consumes all common sense and they get burned, it happens all the time.  They may win a few times then think they are unstoppable.... until that one trade goes south, then it's all over.

Lazy plays into it too.  since they never actually held that money in their hands, or had to work for it, many don't quite understand it's REAL money !!!  If you had to walk to the bank and remove that kind of money and give it to me,  would you be so irresponsible with it?  No???  Then why now??  It just doesn't click how much that really is because they never really seen it, it's just numbers on a webpage to them.

Also, when one does become a billionaire,  a million dollars is pocket lint.   If Elon lost a million, he'd tell the cleaning lady, empty out my pockets next time you do my laundry, it'd mean pretty nothing to him.  to me, yah suicide might be a thought.  Lets put this in your world.  would you leave 5 dollars in an exchange?  why?  because it's only 5 dollars, it's not worth the hassles and time to move it around, if i lose it meh.....  well to that kid starving in ethopia, that 5 dollars is the same as the millions you are eyeballing..... it's all about perspective.

finally, quit complaining when the market moves,  quit complaining when the govt moves it,  it always comes back, stop looking short, look long, let it ride.  or better yet, look what's going on and hop on that train.  

the crypto world is full of a bunch of emotional little girls, squealing every time their rock star fanboy comes on stage and throwing their panties at him.  Those are the traders who run on emotion and panic every time someone farts.

the whales know when they bellow, ya'll gonna scramble, clean up the mess you made, then swim off with the food you just dropped.  Nancy pelosi threatens to 'regulate' the market, it panics, guess what, her short position just made a mint.  A few days later she says, well ok i wont,  everyone runs to buy back their stuff... now she makes a mint selling you back all the stuff you panic dumped, for a 20 percent markup.....  STOP trading on emotions, trade on confidence.   or better yet ride nancy's coat tails, you see her putting that move up, follow suit... you know what it is, ride it.  You can't stop that train, you are too small, but you sure as heck can get in its wake on your bicycle and let it pull you along a little bit making your work a little easier.

Finally one more circle back to your origanal ?
someone who DOES predatory trading on those panic kind of market moves, needs those funds available now.  When something blows, sometimes you only have a few minutes to gather up the spilled goods, before it's all swept back up. You need that money right NOW.... waiting 15 minutes for a 'funding' transaction to finally clear to be able to use your money, may be too long, and you missed the opportunity.... so you leave it there, immediately ready to put into action.

just some thoughts,  nothing personal...
peace.

Aaron

[Jubilee58]

The truth of this matter is that, most traders tends to take higher risk when they have reasonable amount of money in their exchange balance, because the want to make more money, they take higher risk and trade with very high leverage, and they fail to understand that the cryptocurrency market is highly volatile and when the cryptocurrency market crashes they loose their money massively, and this kind of situation can be disheartening, and can lead to emotional instability.

While trading, try as much as possible to minimize your risk as prevention is better than cure.

[Bitcoin_Arena]

Human greed has just so many infinite levels. This is the same as people who still invest their entire savings into Ponzi schemes or big butchering scams introduced to them by some stranger with a profile of a beautiful looking girl on social media.

I have had my fair share of trading mistakes, but none of the losses really puts me in any sort of depression or even get a thought of committing suicide. Maybe people should learn to trader with disposable funds that they can afford to lose.

[TheUltraElite]

So many suicides? I dont think that is completely true, maybe some people did but again I think they have been more careful about what they had invested in.

Crypto is risky and we long term holders know that to avoid the risk we must go for it in the long term and not short term.

The life of a human is priceless and hence future traders need to have that mindset and cash cushion such that they dont succumb to market pressure and do such things.

[Mrbluntzy]

situa author=shield132 link=topic=5562452.msg65925411#msg65925411 date=1760550465] but I'm thinking about, those people who have millions of dollars on their exchange balance, why do they risk and trade with their whole capital with a high leverage? You can't get liquidated when the price goes from 120K to 100K if you don't use a very high leverage. The crypto market saw more than $19 billion in liquidations across leveraged positions just a few days ago. This isn't normal, especially when Trump manipulates the market as he wants.
[/quote]Maybe that is the fun of trading for them, they probably get more excited seeing the millions of dollars on their balance and the excitement too is in the position size they enter, knowing the expected reward of that position size if their price level is met (I'm only guessing). Why do they use high leverage? the answer is obviously, high leverage is applied so that they can make a massive profit very quickly. Don't you know that that is the reason they use high leverage?
 I saw a trader who posted his successful trade on x just recently, the trade was successful, it was just a 20 minutes trade of BTC/USDT pair, do you know the leverage he used? He used 100x and made about $5k within that 20 minutes. Too much a short time to make such profits, I see that as greed and you can tell the reason why high leverage is applied.

Proper risk management is difficult to build and difficult to handle, so I won't even dare to involve myself in leverage trading, except the reason for my decision changes in the future.

[GhostRider25]

Mr blunt brings up an excellent point.

The day traders often work spur of the moment events.   these events happen very quickly, and you have to be ready now when it happens.
He flipped it in 20 minutes and made bank.  if he has to wait 15 minutes for a funding transaction to hit and finally be released, he may have missed that trade.
Also, at times, especially in stocks, a trade can be locked up for a bit until it clears.  If your money is tied up in transactions clearing, you can't use it.  This often can happen if you are working a cat kick too. 

It takes money to make money, and the money has to be available.

Greed, perhaps but it worked for him.  He could have just as easily gotten burned and lost it too.  Just like everyone hates short sellers,  why?? it's all part of the whole ecosystem.  They cry that he profited when the price went down, conveniently glancing over the fact that every time there is a trade the money comes from somewhere.  Every time you make money... someone had to lose it.

Aaron

[Rruchi man]

.. why do they risk and trade with their whole capital with a high leverage?

Just as overspeeding kills, overconfidence also kills, especially in trading. I believe that most traders who still use high leverage and trade with large amounts of money are just really overconfident in the skill that they have and think that because they have been trading for a long time, they can take such risks. The market constantly reminds them that they can never be 100% perfect and correct always, and since they have refused to learn the lesson, they pass through the experience again.

Leverage in trading is not necessary when you have a large account size.

[Franctoshi]

There are rumours in my country, which I believe is not true, that 2000 people committed suicide after crypto crash and I've bookmarked lots of tweets that was shared on a local crypto group but I'm thinking about, those people who have millions of dollars on their exchange balance, why do they risk and trade with their whole capital with a high leverage? You can't get liquidated when the price goes from 120K to 100K if you don't use a very high leverage. The crypto market saw more than $19 billion in liquidations across leveraged positions just a few days ago. This isn't normal, especially when Trump manipulates the market as he wants.

There are various reasons that contributed to the liquidation of these traders aside from using high leverage to trade,
Some traders do trade without stop loss and which I do sometimes for personal reasons and due to liquidity hunt, though very risky and not recommended if you're not a pro trader.

I witnessed another thing that happened on that day, when the Market crashed at some point, Binance platform were no longer taking orders, a sudden system glitch,  I did all I could to buy the dip but my orders wasn't placed, imagine someone who just place a trade and the market started crashing without having to put a stop loss..  however I don't know about what happened with other exchange platforms that day.

[GhostRider25]

That happens a lot in the crypto world.
when things start going bad  all of the sudden you little people are not allowed in to protect your positions  and markets are halted to give the big boys a chance to hedge their position, which is why i don't trust any of that crap.

look at the garbage they pulled with that game stop fiasco on robin hood and others.  halting trading so the whales could cover their asses while you were left flapping in the breeze.  it happens more than you can imagine.  the game is not meant for you or i to play.

Aaron