Be the smartest one of you want to make money

Most of us came to the world of cryptocurrency to make money. Coming to the crypto space having the desire is quite natural and I think all of us have such kind of desire. Obviously, nobody comes into crypto to lose their money. Many people try to find financial freedom in the crypto space through trading and making continuous profits. There exists another reason because of what people came to cryptocurrency and it's because cryptocurrency gives the full freedom of assets.

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In the world of cryptocurrency, there exists a harsh reality and very few people talk about it. And the harsh reality is that everyone will never be able to make money from cryptocurrency. Only smart people will be able to make money. So in the case of financial freedom, very few people will be able to get financial freedom means only the smartest one and most of the people will suffer the loss and it's the truth. If you start to calculate then you will find out that most of the people currently are in loss. And in the future, it will remain the same because nothing can change it.

Crypto is not generating money itself. If one person makes profit then another one must face loss. It's not possible for everyone to make profit. At first, think about spot trading. Doesn't matter if it's a bull market or Bear market, somebody selling their cryptocurrency and at the same time, somebody buying cryptocurrency. Suppose in a high price somebody sells their asset and takes their profit then exactly at the same time somebody buys the selling assets. If the price drops from there, obviously those people will suffer the loss of those who buy at the high prices. Isn't it clear? So whenever we make profit then at the same time some others face loss. If we are the smart one then we will be able to buy at the cheap price and sell it at a high price and the others will lose their money. If there exists no buyer then we can't sell our assets. So there are always buyers. They can be trader like us or they can be the owner of the exchanger. But the owner of the exchanger ensures it not to face such kind of situation.

Let's talk about leverage or future trading. Many people may think about how leverage trading works. I am trying to make it understand with a simple example. Suppose the total value of an open long position is 100k and approximately the same amount of value open in the short position. If the price go up then those people who open long position will get profit and most of the people who open in short positions will start to be liquidated. Again if the price drops then the short position opener will make profit and the long position opener will be liquidated. In such kind of situation, there are no complications. But what if most of people open long positions and very few people open short positions? If the price goes up then where does the remaining money come from because Compared with short positions the amount is huge. If that thing happens then what will be the source of money? Obviously, the exchanger as well as the owner needs to pay the money from their own pocket if such things happen. But remember that the owner of an exchanger didn't build the exchanger to suffer loss. They know how to handle the situation well. They have the ability to make their loss into profit. Do you know what will happen? The owner of the exchanger will manipulate the market. Selling their assets they will dump the market and liquidate most of the long positions openers and then rebuy back their own asset in the cheap price. Besides most of the liquidated money will be their profit. Again if most of people open short positions then they will pump the market and liquidate the short position opener.

Remember one thing that the owner of an exchanger will never bear the losses. They know how to convert their loss into profit and they don't hesitate to manipulate the market for their benefit. That is the reason I always try to stay far from leverage trading and I think if anyone is not an expert then they should avoid it. As I said earlier only the smartest ones will make money and most of people will suffer the loss in cryptocurrency. So if you want to make money from cryptocurrency then try to learn from your mistakes and be the smartest one otherwise you will suffer the loss.