A strong bull market tends to attract speculators and newbie traders who hop on to the rally with an aim to get rich quickly. In their eagerness to earn huge profits, traders throw caution out of the window and take on excessive leverage. While this strategy is fruitful during the asset’s up-move, sharp corrections wipe out most accounts due to the use of massive leverage.

Bitcoin’s (BTC) recent market drop below $30,000 caused the Bitcoin futures open interest to plummet from $27 billion…