Avoid Using Leverage in Crypto During War — It’s Risky and Dangerous
When a war breaks out, like the current tension between Iran and Israel, the crypto market becomes extremely unstable. Prices can go up or down within minutes, and news can shake the entire market. That’s why using leverage during war times is a very risky move — and traders should avoid it.
Leverage means borrowing money to trade more than what you actually have. For example, if you have $100 and use 10x leverage, you can trade as if you have $1,000. While this sounds like a way to make more profit, it can also lead to faster and bigger losses — especially in unpredictable situations like war.
When wars happen, fear and uncertainty spread fast. One bad headline or missile strike can crash the market in seconds. If you're using high leverage, even a small drop in price can wipe out your position and liquidate your funds. This means your trade will close automatically, and you could lose everything.
For example, imagine someone used 20x leverage on Solana thinking it would rise from $145 to $150. But a sudden war update drops the market, and Solana falls to $140 — that trader could lose their whole amount in a few minutes.
Technical indicators like RSI, volume, or support/resistance don’t always work well during war, because emotions and panic control the market more than charts.
In times of war, stay safe. Trade with low risk, avoid leverage, and focus on protecting your capital. It's better to stay cautious than sorry.