【Core principles for choosing multipliers】
✅ Must-read for beginners:
1️⃣ 1-5x leverage: High margin for error, can withstand 20%-50% fluctuations (e.g.: under 3x leverage, 1000U can withstand a 30% reverse fluctuation before liquidation)
2️⃣ Mainstream: Fluctuations relatively stable, leverage below 5x is more secure
3️⃣ Shanzhai warning: Attributes of explosive rise and fall, over 3x leverage ≈ Free pit avoidance guide:
Blindly opening 50x, 100x leverage, a 2% reverse fluctuation directly leads to liquidation (exchanges love to harvest such leeks!)
📉 Relationship between multiplier and risk】
1️⃣ Mathematical rules:
10x leverage: Price fluctuation 10% → Principal doubles or goes to zero
100x leverage: Price fluctuation 1% → Account evaporates
（Blood and tears formula: Leverage × Fluctuation = Account survival rate）
2️⃣ Liquidation critical point:
10x leverage: Must withstand 10% reverse fluctuation
50x leverage: Only requires a 2% reverse fluctuation to be liquidated
Rule verification: In September 2024, BTC saw a spike and drop of 8%, causing 50x leverage players to collectively liquidate
【Dynamic multiplier adjustment method】
1️⃣ Market volatility law:
Low volatility period (BTC daily volatility <3%): 5-10x
High volatility period (major positive/negative news): Reduce to 1-3x
2️⃣ Kelly formula application:
Single position leverage ≤ Total capital × (Win rate - Loss rate / Profit-loss ratio)
（e.g.: Win rate 60%, profit-loss ratio 2:1 → Leverage ≤ Total capital × 20%）
3️⃣ Step-by-step leverage increase/decrease:
Floating profit 30% → Can add 1x leverage (e.g.: 3x → 4x)
Floating loss 10% → Immediately reduce leverage by 50% (e.g.: 10x → 5x)
【Practical pit avoidance guide】
1️⃣ Platform hidden rules:
Small exchanges may maliciously trigger high leverage liquidation (choose large exchanges like Binance/OKX!)
Some platforms restrict withdrawals after profits: High leverage profits need to wait for settlement before withdrawal
2️⃣ Psychological trap:
FOMO multiplier: Seeing others flaunt 100x profit charts and following suit → Must cool down
Anti-single multiplier: Blindly increasing leverage after a loss to average down → Accelerates to zero
3️⃣ Fee black hole:
50x leverage trading fees are 3-5 times higher than 5x (high frequency can directly lose all)
🌈 Summary: Multipliers are not metaphysics, they are mathematics!
Remember this iron law:
Leverage = (Your acceptable loss % ÷ Expected fluctuation % ) × Coefficient (0.5-0.8)$BTC The probability of it breaking is very small! But we still need to have risk awareness! After selling, wait for it to rise above the daily moving average again, then buy back, leaving 168 below ☝️🚗!
