I just saw someone shout 'Leverage should not be touched; it goes to zero at the slightest touch,' and I burst out laughing — it's like crashing a car into a wall and blaming the steering wheel for being too responsive? As someone who has been in the crypto space for 5 years, let me be frank: high leverage has never been a monster; foolish operations are!
First, let's give beginners a straightforward calculation: when the market starts, a 6-point rise in spot prices might just cover the transaction fees, but if you choose the right direction and use the right strategy, compliant leverage tools can directly boost profits to 100% or more. This is not mysticism; it is the 'multiplicative effect' of leverage — it acts like an amplifier, infinitely magnifying your trading logic. Those who make money rely on it to accelerate wealth accumulation, while those who lose money curse it as 'harvesting chives'. The root of the problem has never been the leverage itself, but rather 'who is operating' and 'how they are operating'.
Why do so many people stumble with leverage? I've seen too many ridiculous operations: panicking to cut losses if the market pulls back 2%, expanding positions when up 3%, and even not setting stop-loss lines, all while holding a 'let's gamble' mindset and going all in. What kind of trading is this? Clearly, it’s just giving money to the market! True leverage experts understand three iron rules, which is how they can steadily profit.
First, make accurate judgments and avoid vague trading. The premise of leverage is having a clear understanding of the market – knowing where the support and resistance levels are, whether the trend is bullish or bearish, and what the entry signals are. Every time I use leverage, I spend 3 hours reviewing candlestick charts and validating indicators, never entering based on 'feelings.' Vague judgments + high leverage equal handing your account over to luck; liquidation is just a matter of time.
Second, be steady in your actions and refuse to operate emotionally. The crypto market changes rapidly, with price fluctuations being the norm. Some people panic at market volatility, constantly chasing trends and buying high and selling low, ultimately leading to greater losses. When I use leverage, I set my entry price, take profit price, and stop-loss price in advance, executing automatically without letting emotions take the lead. Remember: keeping a stable mindset enables you to hold onto profits.
Third, be ruthless with stop-losses; never stubbornly bear losses. This is the most critical point! I've seen too many people who set stop-loss levels that are effectively non-existent, always thinking 'let's wait a bit; maybe it will rebound' when losses increase, resulting in even more losses, and eventually wiping out their accounts. In leveraged trading, a stop-loss is not admitting defeat; it's to protect your principal and keep your capital intact. My principle is: once the stop-loss is triggered, I close the position without hesitation, even if the market does rebound afterward – missing one opportunity is not scary; losing all your capital is truly losing all chances.
To put it simply, leverage is a 'magic mirror': if you have a mature trading system and strict discipline, it becomes your wealth accelerator; if you lack logic, mindset, and strategy, it becomes your liquidation trap. I know people who profit every month using 10x leverage and others who blow up their accounts daily with 3x leverage; the difference lies in these three iron rules.
Lastly, I want to emphasize again: don't be scared away by leverage at the first mention, and don't impulsively go all in either. The crypto market is never short of opportunities; what it lacks are people who can master those opportunities. Leverage itself is neither right nor wrong; the key is whether you have the corresponding ability and discipline.
The market never waits for anyone; the next trend might be as soon as tomorrow! Follow me, and I'll continue to share market analysis, leverage strategies, and practical skills to help you avoid pitfalls and seize opportunities. Remember: in the crypto market, money earned by luck will eventually be lost by skill; money earned by ability is the real stability! Don't wait until others are reaping the rewards before you remember to catch up – follow now, and when the next market surge starts, you'll be the one confidently profiting!
