99% of retail investors in the crypto market have misconceptions about contract leverage

A crypto friend mentioned to me that he often trades with 50x or 30x leverage.

Taking Bitcoin as an example, 30x leverage requires a margin of 1600 USDT, 50x leverage requires 1000 USDT, and 100x leverage only requires 500 USDT.

Under the same market conditions, I personally recommend directly using 100x leverage.

Because once leverage is used, whether it’s 1x or 100x, there are risks involved. However, in terms of returns, there is a world of difference between 1x and 100x leverage.

Some people feel that 1x leverage has lower risk, but take Bitcoin as an example: under 1x leverage, one contract requires a margin of over 470 USDT. When the market does not rise significantly, the transaction fees can eat up the profits, making even profitable trades negligible.

Therefore, since you choose to engage in leveraged contracts, you should fully utilize the advantages of leverage and go for 100x directly.

Many people have limited funds but engage in contracts that exceed their capacity. With insufficient margin, it’s difficult to withstand market fluctuations; even a slight market movement can lead to liquidation, causing them to miss subsequent profit opportunities.

Thus, when trading perpetual contracts, if conditions allow, prepare as much margin as possible to be on the safe side. Investing carries risks; what we should do is reduce risks first and then pursue profits. Holding onto losing positions is a major taboo in contract trading, and timely stop-loss is essential.

Timely stop-loss, combined with a position-by-position approach, can minimize risks to the greatest extent without risking the principal. Set a daily profit target for yourself, and once the target is reached, stop trading; contract trading will become simple.

Experienced crypto friends know that if you have 5000 USDT as capital, making a daily profit of 50 to 100 USDT is not difficult, especially once you master the methods. Assuming you achieve your target over 20 days in a month, you can still make a considerable profit.

Of course, unexpected situations like market volatility will occur during actual operations, but with reasonable planning, profits are still achievable. I hope these shares can help fellow crypto friends.

Many souls have perished on the crypto road, but my senior only helps those destined to meet: @加密大师兄888