Yesterday a brother asked me: 'What leverage do you usually use?' I said 10x at most, and he laughed directly: Coward! I start at 50x, 100x is the thrill!
Does this sound familiar? In the crypto world, among those who trade contracts, eight out of ten think this way — the smaller the principal, the higher the leverage, take a gamble, and a bicycle turns into a motorcycle. But the reality is: the level of leverage is not the key; the key is whether you have a 'safety net' to save your life.
The essence of leverage: borrowed money must be repaid.
Assuming the current BTC price is $116,000:
Open a 1x contract? You need to put up $11,600 as margin (rich man play).
Open 10x? $1160 can get you in (retail investor's favorite).
Open 100x? $116 can play (casino feel).
But don't be fooled by 'low cost'! Even if you use 2x leverage, if the market moves against you by 50%, you'll still get wiped out completely. The difference is: high leverage makes you die faster, while low leverage makes you die more clearly.
The 'cowardly' operations of seasoned traders
First ask yourself: how much loss will keep you awake at night?
If you’re playing contracts with $5000 and you explode at $3000, does your mindset collapse? Then your single risk shouldn’t exceed $1000.Isolated margin mode is a lifesaver.
Full margin mode = all money tied together to blow up, isolated margin mode = individual contracts bear the burden, at least it won't take everything away in one go.All your assets.
Setting a stop-loss is as natural as breathing.
Setting a stop-loss is not admitting defeat; it's buying insurance for your account. I've seen too many people 'hold their positions', suffering a 10% loss and stubbornly holding until liquidation, only to blame the market for cutting the retail investors.2% daily is more profitable than going all in.
With a $5000 principal, earning $100 (2%) daily, you'll steadily have over $2000+ in a month. Meanwhile, those who go all in at 100x every day have likely closed their accounts quietly on some deep night.
To speak franklyContracts are this thing,used as a tool by some, and as a weapon by others.Look at those who have survived in the market for over three years, which one didn’t come out as a 'coward'?Earning less is always better than getting liquidated; staying alive means there’s a next game.
People are more important than anything else! If you’re still wandering in confusion, why not check out @crypto Guang Ge to help you snipe every wave of the bull market?
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