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After years of navigating the crypto trading world, I've seen countless stories about contracts—some people get rich overnight, while most get liquidated instantly. Today, I want to talk about something more realistic: why do people keep pouring money into contracts despite knowing the high risks involved?
**Where Does the Power of Leverage Come From**
Using $1,000 to control a $100,000 position, a 1% price increase can earn you $1,000. This "small money leverages large" thrill is indeed addictive. Compared to traditional financial markets with a maximum 5x leverage limit, the 50x, 100x, or even 125x leverage in the crypto space is like opening Pandora’s box. Humans are naturally eager for quick wealth, and leverage hits right at this pain point.
There's also a deadly attraction—the crypto market never distinguishes between bear and bull markets. You can go long when prices rise, short when they fall, and it seems there's always a chance to make money. Last year, during a market correction, those who shorted actually made a fortune. This illusion of "endless opportunities" keeps many people hooked and unable to stop.
**Myth of Instant Wealth in Communities**
Social media is full of stories like: "Last night, SOL contract skyrocketed 10x" or "Made enough for a down payment in a month." The more you see, the more tempting it becomes. Not to mention the newbies chasing "big V signals," blindly following others, which often results in them becoming the ones being exploited.
**Why Do You Always Get Liquidated**
High leverage is like a double-edged sword. With 100x leverage, a 1% adverse price movement can wipe you out instantly. The problem is, coins like SOL can fluctuate 10% in a single day—this is not rare. Many get liquidated not because they misjudged the direction, but because they chose such extreme leverage that they couldn’t withstand normal market swings. The risk is always there, but people tend to forget it selectively.