Why I never trade in futures…
Bitcoin flash crash
December 11th Bitcoin plunged down a few thousand dollars per Bitcoin in a matter of minutes. Something that can always happen in a market where there a lot whales with very large positions. Due to that crash over 300 million USD of long futures positions got liquidated and it created an ever bigger sell off.
This made a lot of people lose big money! And it is always the risk when one invests in derivatives like futures and options instead of the real deal.
Always go for the real asset
That’s why my motto is to always invest in the real asset and never in derivatives like futures and options. Because even when the market dumps you still are holding the asset. Unlike with the derivatives. In that case you lose a lot of money and you are left empty handed!
When it comes to commodities, stocks or crypto, always by the asset or even just a portion of it, but stay away from derivatives. It’s always a gamble, and things can go very fast, especially with crypto!
Have a great week,
Sincerely,
Pele23
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yup, crazy markets! I was sweating over my small trade just earlier. I don't think I could stomach a several thousand dollar drop on btc tho.. :P