Low Leverage and High Leverage Contracts: Two Types of 'Lives' in the Cryptocurrency World
In the cryptocurrency world, dealing with contracts at low and high leverage offers two completely different experiences, akin to playing two different games.
When I first got into contracts, I started with low leverage, around 5x. While trading at low leverage, it was normal to make accurate judgments about price movements, as the volatility wasn't that extreme. The returns were stable; 2x and 3x were common, with one time reaching as high as 8x, totaling over 30x in profits. Even when faced with downturns, I wasn't afraid; I could hold on and ride it out, maintaining a steady mindset, feeling that making money in the cryptocurrency world was just like this.
Later, I felt that 5x wasn't thrilling enough, so I jumped into 100x contracts. As a result, this past month felt like I was specifically 'targeted' by the platform! When I went long, the market seemed to play dead and wouldn’t rise; when I went short, it stubbornly wouldn't drop. Even worse, as soon as I closed a long position, it would immediately skyrocket; closing a short position would lead to an instant crash. I could tolerate it once or twice, but after a month of this, my mindset completely broke down. It felt like the market was taking me for a ride, leaving me utterly frustrated. Moreover, high leverage is too fragile; a 5-point fluctuation in the cryptocurrency market is normal, but with high leverage, a drop of just 4 points on a long position could trigger liquidation, and a rise of 4 points on a short position would wipe me out. After getting liquidated multiple times, I became numb, with no feelings left, even doubting that the platform had 'heavenly eyes' specifically watching high leverage contracts to harvest profits, treating even the smallest trades as 'meat' to be devoured, leaving the market to move as it pleases afterward.
In comparison, the differences between low and high leverage are significant:
In terms of mindset: low leverage is 'rise and fall at will, I’m as steady as an old dog'; high leverage is 'even a slight fluctuation causes panic, liquidation leaves one numb'.
In terms of judgment: low leverage requires just an overall trend, with a high margin for error; high leverage requires precise predictions of short-term fluctuations, with any slight deviation leading to liquidation, purely relying on luck.
In terms of operation: low leverage allows for long-term holding, and uninstalling the app wouldn’t matter; high leverage requires high-frequency trading, dozens of times a day, where the fees could eat up the profits, making long-term trading nearly impossible.
To be honest, when trading contracts, don’t easily touch high leverage; even 20x should be carefully considered. It’s better to stick with 5x responsibly. But human nature is like this; after earning a bit, we always want to gamble for more, often ending up liquidated to zero, paying countless tuition fees, or even going bankrupt. I still need to remind myself that making money in the cryptocurrency world is not easy; being steady is the way to go, don’t let the excitement of high leverage blind you, or you’ll be left with nothing but regret.
However, I’m trading at 100x-120x 😂😂😂
