A recent phenomenon worth noting — a leading institution holding 473 million XRP is stuck in a loss trap, with unrealized losses exceeding $220 million. This organization, claiming to build the world's largest XRP asset reserve, entered at an average cost of about $2.44, and even chased higher to build positions at $2.54. Now, XRP is only fluctuating around $2.2.

This case exposes a market misconception. For a long time, retail investors have believed that professional institutions are "smart money" with market intuition beyond ordinary investors. But in reality, this institution's operational logic is no different from retail traders — repeatedly buying the dip during a downtrend, trying to dilute the average cost through dollar-cost averaging.

The problem is, this strategy, effective in traditional financial markets, fails in the crypto market. The volatility in the crypto space far exceeds that of stocks, bonds, and other traditional assets. Buying the dip strategy not only failed to turn the tide but also seemed to pour more capital into a deepening pit. If the trend doesn't reverse, each additional purchase only worsens the losses.

The difference between institutions and retail investors may not lie in market understanding but in psychological resilience and risk management. When the professional halo fades, what remains is the simplest investment principle: don't bet on the direction, manage the risks.