Today I must talk to you about the high leverage high-frequency contracts in the cryptocurrency world. This stuff is really not for humans! To put it bluntly, it's a gamble with your life! Take Liangxi for example, who dropped out of school at 17, used 1,000 yuan from his dad's bank card, and relied on 100x leverage and high-frequency operations every 5 minutes. In a month during the Bitcoin crash in 2021, he made 40 million, instantly becoming a legend. But this guy later faced a loss of 200 million due to a single judgment error.
Leverage
Let's just say, leverage is a "wealth accelerator" if played well, but a "principal crusher" if played poorly. For example, with 10x leverage, a 1% market fluctuation means your principal fluctuates by 10%. Data from 2025 shows that the liquidation rate for accounts using 50x leverage is as high as 82%, while the liquidation rate for leverage above 20x exceeds 40% in extreme market conditions. On April 9, 2025, Liangxi made 25 million in a single day, but the next day he lost 12.5 million due to a Bitcoin squeeze, which is like riding a roller coaster; those with weak hearts simply cannot withstand it.
Exchanges are like "money siphons". Fees, funding rates, slippage—these things are like leeches, unknowingly draining your profits. Liangxi previously had a winning streak of 43 trades making millions, but his fans who followed him ended up losing everything due to fees and slippage; this is the difference between a "gambling house" and "gamblers".
Liangxi Phenomenon
Liangxi's success is a "survivorship bias". He was able to make 1 million U from a 2,000 U principal using 50-100x leverage during the Bitcoin crash in February 2025 due to his precise market judgment and quick stop-loss ability. But this guy had unlimited funding capacity and top-notch technical infrastructure, which ordinary retail investors simply cannot afford. Just like when he publicly shorted Ethereum in April 2025, his fans ended up losing over 10 million due to an extreme squeeze, which is the tactic of "becoming a legend first and then harvesting the chives".
Stay away from leverage
Folks, we need to give up the fantasy of getting rich quickly. The wealth myths in the cryptocurrency world are all "survivorship bias". Data from a certain platform in 2025 shows that 70% of retail investors' losses were due to not stopping losses in time. Real investment should be like what Buffett said: "The first rule is not to lose money, the second rule is to remember the first rule."
Only by being stable can you survive
Don't use high leverage: keep leverage below 3x, or simply give up contract trading. The smart risk control system of XBIT exchange can reduce the liquidation rate to 0.8%, but retail investors simply cannot utilize it. The safest way is to stay away from leverage.

- Diversify your investments: Don’t put all your eggs in one basket. Spread your funds across mainstream coins like Bitcoin, Ethereum, etc., to avoid over-concentration in a single asset. Liangxi stumbled because of excessive concentrated betting.

Cold wallet storage: Transfer your spot assets to a cold wallet to prevent exchange failures. In 2025, a trading platform for Tron coin had a single-day liquidation of 180 million USD, which is a lesson learned.
Cherish life, stay away from high leverage.
High leverage high-frequency contracts are not the key to wealth, but rather a mirror reflecting human nature. In this market, surviving is more important than anything else—after all, there will always be new gamblers at the betting table, but the winners are always those who set the rules. Take my advice, cherish your life, and stay away from high leverage!$BTC $ETH
#美国加征关税 #币安Alpha上新