Attention contract players! What you frequently say, '5x leverage is very conservative,' is simply self-deception. Today, I will break this illusion—talking about leverage multiples in the crypto space is meaningless; what's truly deadly is the risk exposure.
For example: if you use $1000 with 5x leverage, it's like betting $5000. If you go all in, a 20% fluctuation will wipe you out. But if you split that $1000 into 10 parts and only use $100 each time with 5x leverage, your actual risk exposure is only 10% of your capital. This is true risk control.
Now do you understand why most people get liquidated? They make two fatal mistakes:
First, mistaking platform leverage for actual risk. A platform showing 10x leverage isn't scary; what's scary is betting your entire capital.
Second, ignoring the volatility characteristics of the crypto market. A 5% fluctuation in BTC in a single day is normal; altcoins can fluctuate by 20%. Using stock leverage thinking here is a guaranteed failure.
True professional players follow three iron rules:
Single risk should not exceed 2% of capital (for example, with a $10,000 account, the maximum loss per trade is $200)
Keep total risk exposure within 20% (leaving 80% ammunition to cope with extreme market conditions)
Maintain at least 50% of the time in a flat position (waiting for certain opportunities)
Remember, the money made in contracts is not from direction, but from risk management. Those players who get liquidated are essentially giving money to those who understand how to control risk. Only when you can achieve 'when others are fearful, I am greedy; when others are greedy, I am fearful' can you be considered truly initiated.
Finally, let me share a painful lesson: in the crypto space, those who survive long are secretly counting money, while those who die quickly are shouting trades in live streams. Whether you choose to be a hunter or prey depends entirely on how you treat risk.
Blindly going solo will never bring opportunities. Follow me, and I will guide you to explore tenfold potential coins! Top-tier resources!
