Many newcomers who have just entered the cryptocurrency space do not take risk control seriously, and their minds are filled with thoughts like, "With this little principal, how can I quickly double it without leveraging?"
As a result, heavily investing with 20x or 50x high leverage has become the most brutal way for novices to pay tuition.
Let me make it clear: high leverage with heavy investments is not just likely to incur losses; it is destined to incur losses, with the only difference being when you get liquidated.
Most people mistakenly believe that leverage is a tool to magnify profits, but they overlook the core fact—it magnifies market volatility, not trend returns.
The clearly defined major trends in the cryptocurrency space are already scarce, and more often, it is a grinding market of volatile fluctuations and both longs and shorts getting wiped out.
The harshest scenario often is: you are right about the direction, and your trend judgment is not wrong, yet you get stopped out before the market starts moving. This is not a technical issue, but rather a problem of position structure stepping on a mine from the very beginning.
What kind of users do you think exchanges prefer?
It’s those who are fully invested, use high leverage, trade frequently, and love to hold positions.
In the eyes of the exchange, your stop-loss orders are a source of liquidity, your liquidation is a counterpart's chips, and the trading fees are a stable revenue stream.
What you think is a "gamble to turn things around" is essentially just fueling the market.
Those who can survive long-term in the cryptocurrency space have always been the ones who understand respect: trading with light positions to avoid black swan events, using low leverage or even zero leverage to reduce volatility risk, prioritizing survival, and seeking certain returns rather than fantasizing about high odds.
It’s not that they don’t want to make quick money; it’s that they understand opportunities are always there, and once the principal is gone, they are completely out.
If you still hold the idea of "turning things around with heavy investments and changing your fate with high leverage," stop trading; this is just drawing a line under your cryptocurrency career in advance.
No metaphysics, no selling courses, just a reminder: these pitfalls, whether stepped on early or late, are still pitfalls; it’s better to avoid them from the very start.
Follow me for practical skills that can be put into action, see you in the Binance chat room. @比特阿猫
