High Leverage on Low-Cap Altcoins: Risk vs Reality $BNB

Behavior: Applying extreme leverage (e.g., 20x) on low-cap altcoins or newly listed tokens without proper risk assessment.

Consequence: These tokens often have low liquidity and extreme volatility (10–20% swings within minutes), leading to rapid liquidation and uncontrollable losses. $AAVE

Additional Risk: Slippage and thin order books amplify losses during sudden price moves.

Result: Over-leveraging on illiquid assets increases exposure to market manipulation and unexpected price crashes.

Better Approach: Use moderate leverage on high-liquidity assets and always set stop-loss levels to protect capital.$AVAX

#CryptoRisk #LeverageTrading #AltcoinStrategy #MarketVolatility

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