If you constantly keep pace with everything transpiring in the cryptocurrency world, you might already be aware of the buzz surrounding GameStop (GME) saga playing out in traditional finance. For those who might have no idea about what we are talking about, GameStop, the video game retailer was short over 140 percent of the stock’s float by large hedge funds in anticipation for the stock to go down.
As a result, most investors who took notice of this sudden change decided to buy call options on the stock. This meant those holding these positions went underwater while others had to close their positions. To cut a long story, this was by far one of the biggest finances stories in 2021. Crypto investors, especially those who are into defibulls continue to take note of this trend as it signifies on-chain applications are the future.
Unfortunately, some investors tend to think the system is rigged and most traders will encounter issues while using the platforms. For them, they are better off with DeFi as it doesn’t arbitrate if users can or can’t make a trade. Instead, you need to interact with different platforms on a new blockchain, not forgetting your ability to pay the transaction fee.
Despite this, it is still okay to argue that defibulls.finance, shows how much the decentralized spaces has to grow in the future. However, it always pays off to know what you are dealing with in the first place before you finally switch. Keep in mind most traders net long on Binance future is a clear indication that they market may be too bullish. What this simply means is that traders who are more than willing to take the risk will enjoy a more profitable contrarian trade.
The Bottom Line
The cryptocurrency world continues to grow every other day and there is no time of slowing down any time soon. Either way, you need to remember that trading itself is all about risk management, and risk reward ratio. For this reason, you need to learn the hard way that the risk is greater to the upside, and reward even way more enticing on the other side of the trade.
Remember, the crypto market has been overly greedy for some time now. That’s why it pays off to have clear insights into what you are dealing with in the first place before you finally make up your mind to start trading.
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