[Refreshing the present ]
1️⃣ I promised to study futures liquidation and margins, ADL, B Book Exchange and LP, but it was actually a fake. I don’t intend to study deeply.
We need to know the principles and concepts, but we also need to know the exact formula. Should we really live like that? Regardless of investment, we have lived our lives roughly. I want to continue living like that.
I know the word Read the docs as the first term used by the development side. Read the manual before asking questions and read the Readme before installation. That’s true, especially in investments. You don’t even have to recognize yourself where you put your big fortune.
But I want to be on the other side today. Most of them don’t read that well. So, can’t you be nice to me?
How many people buy a car and read the manual first? Most people grab the steering wheel, touch the console, and drive right away. Of course, the manual has a lot of information on it. But do we need to know what the maximum speed is and how the airbags go? Most people drive their cars at the right speed throughout their lives. There are things that help you if you know a lot, but there are always benefits in return.
Even if I know the liquidation formula, I can’t adjust the liquidation accordingly, so I’m just going to do what I’ve been doing.
2️⃣ After a day or so, when I slowly looked at yesterday’s situation by coin, 90 to 70% of alt and 50% of even major coins were shooting downward beams. Not only Binance but also other exchanges were the same. In the end, if the futures accounts were operated with 2-3x leverage (at the total ratio of MM rather than individual stocks), all of them would have burst.
I just think yesterday’s plunge was a natural disaster accident.
If an earthquake causes damage, we don’t blame it. Instead, we focus on what we can proactively prepare, such as disaster response systems and insurance. Should we not even use that leverage now that we have experienced this? Maybe. A safer way is not to invest (oh)
In the end, I think it’s a problem to overcome. If you get into a car accident, you’ll get traumas, but overcoming trauma and driving is the most beneficial to your life. Of course, it’s not easy.
3️⃣ Proactively prepared.
There has never been such a situation-a series of liquidations due to a sudden drop in a short period of time-and I don’t think there will be any in the future. However, in coin boards, such unexpected and large events often occur. If you collect big things, there can be dozens of cases a year, and it’s a significant frequency. So it seems very cumbersome to respond individually.
The best way to work is dispersing the risk (to be precise, dispersing the important things to isolate the damage caused by the risk)
At the very least, it’s better to prevent the gifting account from bursting and losing its entire investment.
In the case of coins, investments can be distributed on exchanges or on-chain, such as bits/alt/stables,
Investment itself can be distributed into coins/stocks/real estate/deposits.
Life itself also needs to be divided into coin life/general life, etc.
(Apart from this incident, personal asset hacking in coins and health are the best compatibility in life, so you need to pay special attention to this.)
Line 3 Summary:
- I’m going to invest as I’ve been doing. + But I’ll work harder
- It’s not my fault
- You don’t know what’s going to happen, so the risks are always dispersed