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You want to turn $100 into $10,000 overnight? Yeah, I get it. We all want that. But here is the ugly truth that nobody tells you on Twitter : high leverage isn't a tool for wealth, it's a donation to the exchange. Most of us have felt that rush, opened a massive position, and watched it vanish in seconds.
The Math is Against You (Literally)
Let's break this down simply. If you open a 20x Long, you only need a 5% move against you to get fully liquidated. Rekt. Gone.
In the stock market, 5% is a crash. In crypto? That’s just a Tuesday morning sneeze.
Look at
$SOL right now. It can swing 6-8% in a single 4-hour candle without any major news. If you are sitting there with 20x leverage, you aren't trading. You are flipping a coin where the house (Binance) has an edge. You are providing exit liquidity for the whales.
The "Scam Wick" Reality
Here is the thing. Market Makers see your liquidation points. It’s not a conspiracy, it’s on-chain data. They know exactly where the mass of 20x and 50x stop-losses are clustered.
If the chart looks bullish on
$FET but there’s a huge cluster of long liquidations just 3% lower, guess what happens? Price dumps, wicks you out, takes your money, and then pumps. You were right about the direction, but you lost anyway because of greed.
Call me crazy, but I prefer to be wrong and keep my money than be right and broke.
Unpopular Opinion: Leverage is for Hedging, Not Gambling
Here is my hot take: If you need more than 3x leverage, you don't have enough conviction in the trade.
Real institutional traders use leverage to hedge risk, not to amplify it blindly. If you are aping into a trade with 20x because "it has to go up," you are already the bagholder. You just don't know it yet.
The Survival Checklist
Stop guessing. If you absolutely must use leverage, follow these rules or quit:
Max Leverage: Cap it at 3x-5x. Seriously.The 1% Rule: Never risk more than 1% of your total deposit on one trade.Check Funding: Go to Coinglass. If funding is super positive, everyone is Long. Don't join the herd.RSI Check: Don't Long if the Daily RSI is > 70. Don't Short if it’s < 30.Stop Loss: Set it at a technical level, not a monetary one.
Trading isn't about hitting a home run every day. It’s about staying in the game long enough to win. Leverage kills that longevity. Start small, survive the volatility, and stop donating to the market.
Tricky Question: If you open a Short at 10x leverage and the price drops 10%, but the Funding Rate is -2%, how much profit did you actually make? (Hint: It’s not 100%). 👇
#Write2Ear #Write2Ear #BinanceSquare