Today I must talk to you about the high leverage high-frequency contracts in the crypto circle; this is really not something for regular people! To put it bluntly, this is gambling with your life! Just look at Liangxi, who dropped out of school at 17, used 1,000 from his dad's bank card, and relied on 100 times leverage and high-frequency trades every 5 minutes to earn 40 million in a month during the Bitcoin crash in 2021, instantly becoming a legend. But this guy later suffered a judgment error and ended up in debt of 200 million.

Leverage

Let’s say this: leverage can be a 'wealth accelerator' if used well, but if misused, it becomes a 'capital crusher'. For example, with 10 times leverage, if the market fluctuates by 1%, your capital will fluctuate by 10%. Data from 2025 shows that accounts with 50 times leverage have a liquidation rate as high as 82%, and accounts with leverage above 20 times exceed a 40% liquidation rate in extreme market conditions. Liangxi made 25 million in a single day on April 9, 2025, but lost 12.5 million the next day due to Bitcoin’s short squeeze; it’s like riding a roller coaster, and those with weak hearts simply can't handle it.

Exchanges are more like 'suction machines'. Fees, funding rates, slippage, these things act like leeches, unknowingly draining your profits. Liangxi previously made a fortune of tens of millions with 43 consecutive winning trades, but fans who followed lost everything due to fees and slippage. This is the difference between a 'casino' and a 'gambler'.

Liangxi phenomenon

Liangxi's success is a 'survivorship bias'. He was able to make a wild profit of 1 million U with a principal of 2,000 U through 50-100 times leverage during the Bitcoin crash in February 2025, relying on precise market judgment and quick stop-loss ability. However, this guy has unlimited financing ability and top-notch technical infrastructure; ordinary retail investors simply can't play. Just like when he publicly shorted Ethereum in April 2025, his fans were completely wiped out due to extreme short squeeze conditions, losing over 10 million; this is the 'first become a legend, then harvest the leeks' tactic.

Stay away from leverage.

Folks, we must give up the fantasy of getting rich quickly. The wealth myths in the crypto circle are all 'survivorship bias'. Data from a certain platform in 2025 shows that 70% of retail investors' losses are due to not stopping losses in time. Real investment should be like Buffett says: 'The first rule is not to lose money, and the second rule is to remember the first rule.'

Stability is essential for survival.

Don't use high leverage: Keep leverage below 3 times, or give up contract trading altogether. The smart risk control system of XBIT exchange can reduce the liquidation rate to 0.8%, but retail investors can't use it at all; the safest way is to stay away from leverage.

- Diversify investments: Don’t put all your eggs in one basket; spread your funds across major coins like Bitcoin and Ethereum to avoid heavy concentration in a single asset. Liangxi stumbled because of excessive concentration in his bets.

Cold wallet storage: Transfer spot assets to a cold wallet to prevent exchange collapse. In 2025, the Tron trading platform had a single day liquidation of 180 million USD, which serves as a lesson.

Cherish life, stay away from high leverage.

High leverage high-frequency contracts are not the key to wealth, but a mirror reflecting human nature. In this market, surviving is more important than anything else—after all, there are always new gamblers at the gambling table, but the winners are always those who set the rules. Take my advice, cherish life, stay away from high leverage! If you are still trading based on feelings, stubbornly holding onto losses, and don’t know how to roll over positions, you will eventually be harvested by the market! Keep up.@加密楚门 Crypto Truman, the real winners are always one step ahead!
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