Leverage lets you trade with more money than you actually have. For example, with 10x leverage, you can open a $100 position using just $10 of your own funds. This means bigger profits but also bigger risks.
💥 Quick Example:
Without leverage: $10 → 10% gain → $1 profit
With 10x leverage: $10 → 10% gain → $10 profit
But if it drops 10% → you lose everything (liquidated)
⚠️ Why It’s Risky:
Small price movements = big losses
You can get liquidated quickly
Easy to panic or overtrade under pressure
💡 My Personal Tips:
Stick to low leverage (2x–5x)
Always set a stop-loss
Don’t trade just because of FOMO
Practice with small capital first
🎯 Final Thoughts:
Leverage is a tool, not a shortcut to get rich. If you’re not careful, it can wipe out your account fast. Use it wisely, and always manage your risk.
🔑 Crypto Basics & Tools #1