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Futures Trading in the crypto world is indeed a severe test of human nature, amplifying the greed, fear, anxiety, and arrogance inherent in people, leading many traders to losses or even psychological breakdowns due to emotional decision-making. Here are several key aspects of how Futures Trading in the crypto world becomes a testing ground for human nature:
### 1. **High Leverage and Psychological Pressure**
- Futures Trading allows for 10x, 50x, or even 100x leverage, which means that small price fluctuations can lead to liquidation. For example, with 100x leverage, a 1% adverse movement can wipe out the principal.
- This extreme risk amplifies the psychological pressure on traders, causing them to greedily increase their positions when they are profitable and panic sell out of fear when they incur losses.
### 2. **24/7 Market and FOMO (Fear of Missing Out)**
- The cryptocurrency market operates around the clock, and prices can fluctuate dramatically within minutes, causing traders to constantly monitor the market at the expense of sleep and socializing.
- FOMO (Fear of Missing Out) drives traders to blindly chase prices during market euphoria or hastily cut losses during a plunge, ultimately becoming the "fuel" of the market.
### 3. **The vicious cycle of emotional trading**
- **Greed**: Continuously raising take-profit targets while making profits, ultimately resulting in profit giving back.
- **Fear**: Hanging on until liquidation when in loss.
- **Revenge Trading**: Eager to recover losses after a setback, leading to riskier operations.
- **Overconfidence**: Excessive confidence after continuous profits leads to neglecting risk management, ultimately being taught a lesson by the market.
### 4. **Social Isolation and Disconnection from Reality**
- Many Futures Trading traders are obsessed with candlestick analysis and the crypto world community, gradually becoming disconnected from the real world and even losing basic interpersonal skills.
- In the anonymized crypto world environment, some people use the virtual identity of "trading expert" to replace their real life, avoiding genuine social relationships.
### 5. **Addictiveness of Futures Trading Design**
- Exchanges stimulate traders to operate frequently through high leverage, competition activities, and instant profit and loss feedback, similar to a gambling mechanism.
- Research shows that among traders who continue to increase their positions after a loss, 65% experience the "recoup impulse," which is highly similar to the gambling mentality.
### **How to cope with the test of human nature?**
1. **Set Hard Rules**: Such as fixed trading hours, disabling high leverage, and strict stop-loss.
2. **Fund Management**: Trade only with idle funds to avoid affecting your livelihood.
3. **Psychological Intervention**: If severe anxiety or depression has occurred, professional help should be sought.
4. **Return to Reality**: Cultivate non-trading related hobbies and force offline socializing.
The essence of Futures Trading in the crypto world is a zero-sum game, with long-term winners being less than 10%. True trading masters do not defeat the market, but rather conquer their own human weaknesses—binding greed with discipline and resolving fear with rationality, while remaining clear-headed during market frenzy. As one trader said: "In the crypto world, living long is 100 times more important than making money quickly."