#PI coin circle Shanzhai coin investment risk revealed: don't let impulse ruin your Wallet

Folks, last night the cryptocurrency circle was a bloodbath, with many people being tormented by IP-related altcoins. Today, let's talk about why it's simply not feasible to set a close stop-loss for popular altcoin investments, as there's much more to it than meets the eye.

Let's first talk about the fees for popular altcoins, which are exceptionally high! The fees for most popular altcoins exceed 1%, generally hovering around 2%. Take IP and Pi as examples, the 'make control' strategy is evident here. The so-called 'make control' is simply the platform using investors' money to buy a large amount of spot goods, then dumping them into the market all at once. Meanwhile, our counterparts are also making moves on the other side.

Assuming there is a popular altcoin now, with a fee rate of 2%, holding 1000 units of 'short' positions, choosing 50 times leverage, settling fees every 4 hours or 2 hours, please note that these fees are calculated based on your 50 times leverage multiplied by the 1000 units of your position. Taking settling every 4 hours as an example, let's calculate together how much of the initial 1000 units you will have left after each round of fees deduction. It's pitifully little! So in this situation, the boss behind the altcoin doesn't need to make much effort to manipulate the market, as long as they steadily replenish the opposing positions and stabilize the market. Just by deducting these high fees, a large number of 'short' positions have been depleted. As for the 'long' positions, after receiving fees paid by the opponents, at the sight of a slight price increase, many people follow suit to increase their positions. In reality, this money is just circulating in the market and hasn't flowed out much.

This leads to a phenomenon where when the fees for some popular altcoins reach as high as 1%, the more people short, the higher the price goes up, provided that the boss of this coin has a strong control over the chips, manipulating the market direction. We often see that a sudden surge in the price of an altcoin, many people see the profit and follow the trend to short it, but the more they short, the higher the price goes, especially for those altcoins that are heavily controlled, the trend completely defies logic.

In the face of such altcoins that suddenly fluctuate up and down, they have always adhered to a cautious wait-and-see attitude and resolutely did not participate. Why? The stakes are too great! On the whole, if you have itchy hands and have to participate in this kind of altcoin investment, then you must not think that everything will be fine if you stop loss at the near point, you must at least be prepared to bear the risk of 50 times leverage liquidation, converted into a percentage, that is, - 5000% of the decline can be bearable, if you don't have this diamond diamond, don't take this porcelain work, and honestly stay away from these high-risk "pit money" altcoins. After all, our hard-earned money can't be wasted so easily, is this the reason why everyone says?