1500U to 37,000 U, I rely on "not using leverage" to protect my principal

In the past, I thought "leverage is a wealth accelerator". Seeing others make money with 5x leverage, I learned from them. With 1500U principal, I bought ETH with 5x leverage. At that time, ETH rose from $1600 to $1700, and I made 300U in an instant, feeling particularly proud, even telling my friends, "Leverage is really useful, at this rate, I will double my money quickly."​

However, just a few days later, ETH suddenly corrected, falling from $1700 to $1650. It seemed like a drop of only 3%, but after using 5x leverage, my loss reached 15%, and my margin balance was instantly insufficient. I wanted to add to my position, but I had no spare cash on hand, and could only watch my account get liquidated, leaving only 200U. Looking at my empty account, I finally understood: leverage can amplify profits, but it can also amplify risks. Once the market turns against you, there's not even time to react. ​

Since then, I vowed to "never touch leverage again", only using my principal for trading. Without the pressure of leverage, I became calmer: a 5% increase in BTC is satisfying, and I take profits when due; a 2% loss in ETH means I cut losses, never holding onto losing positions. Once, BTC rose from $30,000 to $33,000. If I had used leverage, I could have made more, but I only used my principal to buy 500U, making 150U before exiting. Later, when BTC corrected to $31,000, I didn't lose much because I didn't use leverage and could hold onto my principal for the next opportunity. ​

After two years, my account slowly grew from 200U to 37,000 U. Although I didn't earn as quickly as others using leverage, every bit of profit felt solid, and I never experienced the pain of liquidation again.

Now I often tell newcomers: "Leverage is a double-edged sword; it can make you rich overnight, but it can also bring you to zero in an instant.

In the crypto world, surviving is more important than anything else. Without leverage, you can go further."@小花生说币