It is true, we live in a high-speed world, but fewer and fewer are patient anymore. They want to make it today, or at most within 30 days or less.
I've been watching various videos to learn to better use a platform where dynamically managing your concentrated liquidity is the main attraction. As a defi evolutionary step, I find this very interesting.
As approaches people take, not so much. Sure, the point of having concentrated liquidity is to be... concentrated, so to use rather narrow ranges where to provide liquidity, rather than all over the place. But there are still different ways you can approach this, same as you can do it with leverage trading. It's one thing to use a 3x leverage based on your analysis/conviction that the price will go in a certain direction on the short term, another to use a 50x leverage and try to do some scalping.
And basically, many of the guides I've seen for the respective platform show how to do some scalping at 50x leverage (or the dynamically managed concentrated liquidity version of this), which is obviously a lot more risky. Sure, they have some systems, and some of them may be successful, but I am pretty sure most people trying this end up losing money.
Why don't they try the "3x leverage" version of concentrated liquidity, for a change? By that I mean providing liquidity for more than a few hours to exotic pairs. Maybe they do, but they don't talk about it, because it's not too exciting.
It's interesting that we are fast approaching the last part of the bull market, and every tool made for that platform tells you that if you don't have more dollar worth of tokens when you close your position, you lost. Really? Well, it depends. What if I'm buying the dip and want more tokens that are likely to go up once the market moves? One dollar equals one dollar now or in six months (well, not even that is true, since we have price increases of the things we can buy with dollars), but one volatile token now that is not in the exotic category, is likely to be worth more dollars six months from now.
Also, something else I remarked. In all the videos I watched to better understand how this thing is implemented and could be used, only once I heard someone mention "staking", as in: "take your gains and stake them". Everyone was all about chasing the next shiny pool that they could find on Twitter, Discord, using the tools, or whatever, stay in there for at most a couple of hours and jump to the next one. A space full of degens, as it is said...
That doesn't mean the same pools can't be used differently. I try to use them differently. I know I am not the only one. I may even try to find an advanced guide from someone who is more down to earth too, lol.
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The shiny new thing is easily to capture people's attention. So I am not surprised to see them do that. However, that 50x leverage sounds so risky. It sounds like something I would avoid right away even if you could get some massive gains.
It's a comparison, for people who are used to trading on leverage, but haven't tried out concentrated liquidity yet, particularly the way most people use them, because one could use it in a less risky way.
Never trade at 50x it will only result in loss, maximum 5 and 10x trades are successful.
I agree.