4 Survival Principles When Trading Crypto – Lessons from 100,000 Dollars in Real Capital
1. Don't be enchanted by x100 leverage Some of you think that just having 100 dollars can turn into 10,000 dollars thanks to leverage of x100. But calculate carefully: When you use full margin with x100 leverage, the price only needs to fluctuate 600 points for your account to be liquidated. That means with a capital of 100,000 dollars, you can still lose everything if the price moves against you by 600 points. High leverage does not help you get rich quickly, it only makes you lose faster. The most reasonable leverage is x3 to x5 – just enough to boost profits while having a margin to handle situations.