Leverage trading on ATH BTC. Think again!

Bitcoin just hit an all-time high.

So before you start thinking about going heavy on longs or shorts, quick reminder on what leverage really means.

Say someone shorts BTC at $108,000 using 40x leverage. That’s $50k controlling $2 million worth of BTC. Sometimes it’s exciting to imagine oneself as a whale! :)

Sounds like a power move, right?

Yeah, until you realize a 2.5% move up to around $110,700 wipes them out completely. All gone. One quick bounce and it’s over.

Sure, if BTC drops to $105k, they could make a few hundred grand fast. But most people never get to that part.

Here’s the part people don’t talk about enough:

Crypto moves fast. 3-5% swings in a few hours is normal.

Big wins you see online? Usually they are whales who know what they’re doing or can afford to lose. Most small time retail traders don’t blow up because their call was wrong. They blow up because they went in too big, no stop-loss, no plan.

Leverage doesn’t make you smarter. It just makes everything happen faster. Profit or liquidation.

So if you’re thinking of playing this game:

• Keep leverage low. Even 3x is already spicy.
• Use a stop-loss.
• Don’t bet money you need to sleep at night.

There’s no shame in sitting out. No one’s gonna remember the trades you skipped — but they’ll sure notice if you go full tilt and get wrecked.

Trade safe. Don’t get over excited!

Posted Using INLEO