The crypto market can be described as a battlefield. This market is entirely driven by manipulation, leading to both significant gains and severe losses. If investing large amounts, it is crucial to understand investor psychology and acknowledge the high volatility of this space. Investors should diversify their portfolios, dividing their capital to manage risks effectively. When prices drop, buying in stages can help reduce costs, as market declines can go deeper than expected, and price surges can be unpredictable.
Altcoin investors have faced serious challenges recently. Many non-major coins have been pushed to new all-time lows. Market makers (MM) took advantage of the surge in new investors, partly influenced by Trump, and caused significant declines in altcoins, leading to substantial losses for investors. Currently, altcoins are in a sharp downtrend, possibly presenting buying opportunities.
Leverage trading in the crypto market carries extreme risk. Even in spot trading, portfolios can shrink by 80%, and using just 2x leverage can result in complete liquidation. Stop-loss orders must be used, and patience is crucial, as market makers will do everything possible to force liquidations and shake out traders.
