Do not use more than 2x leverage

[leonair]

Totally agreed .Its very risky for any traders to over leverage when opening positions will be much better to accumulate small profits than go for a huge one and get liquidated easily ,I have lost so much over-leveraging during my days as a new trader  with time i have since learnt my lessons and refrain from such bad trading habits.

When one trades with high leverage the chances of liquidation are high because when you go to trade with a $100 budget and use 10x leverage it will trade an amount equal to $1000 and if the price of your chosen coin is up 10% or  Down and if it is against your entry you will lose your $100 and the trade will be cancelled.  There if you take 2x leverage then the price of that coin has to change by 50% for you to liquidate.  High leverage means more profit and more loss.  So it is better to use less leverage to be less risk

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[poodle63]

Totally agreed .Its very risky for any traders to over leverage when opening positions will be much better to accumulate small profits than go for a huge one and get liquidated easily ,I have lost so much over-leveraging during my days as a new trader  with time i have since learnt my lessons and refrain from such bad trading habits.

When one trades with high leverage the chances of liquidation are high because when you go to trade with a $100 budget and use 10x leverage it will trade an amount equal to $1000 and if the price of your chosen coin is up 10% or  Down and if it is against your entry you will lose your $100 and the trade will be cancelled.  There if you take 2x leverage then the price of that coin has to change by 50% for you to liquidate.  High leverage means more profit and more loss.  So it is better to use less leverage to be less risk

high leverage exist for people that don't have high capital but want to get big profit, the risk involved is i think understandable, after all when we can get the opportunity to profit as if we are investing 10x of our capital thats definitely not happening without future trading, but then again as you said it will definitely have a risk, even more so with those people that i've seen frequently using 25x leverage is if it was nothing the slightest flash dump could definitely liquidate their money it just nuts.

but overall its a fair game if you know how to take advantage of it properly the thing with most of people is that they don't even have idea about the coin they are investing but still go with high leverage just in case they are proffiting big from it not knowing that the opposite scenario could definitely something thats gonna happen instead.

[michellee]

Before people use leverage in futures trading, they should understand that the risk of losing is greater. They must be able to accept this risk by adjusting it to the funds they use.

And whatever leverage they use, they must be aware of the risks. They don't need to use large leverage if they don't want anything bad to happen. You can continue as long as you are ready for whatever will happen with your futures trading. But if not, it's best not to use futures trading because the risk is greater than spot trading.

That is why if people do not have experience or ability in trading, they should not try futures trading. They can learn to use spot trading while learning more about trading, including analysis. If their skills have improved, they can use futures trading but must use the leverage they can afford.

[humanvelocity]

I don’t do “IF,BUTS OR MAYBES, I DO ABSOLUTES” 20x or nothing

[8rch7]

Just spending funding fees only when trading in future with 2x leverage, usually minimum leverage I used in trading future under 10x and looks better to earn much profit than 2x leverage. I think if leverage around 2x better trade on spot and not required have to pay funding fee each 8 hours and depend with kinds of coins trading get pay more higher fees.
Indeed coins movement drastically up or down its depend on how careful our research and not problem with some coins suddenly up and down significant in short time just as TRB coins last several days. Price drastically up from $150 to $500 but in short time return back to lower price more drastically until $130.

[JariKriting]

if you only use a small leverage it is better and better to trade in spot not in futures. if you really want to enjoy a little challenge in the future it is better to use margin trading which is not a big leverage. if you are looking for safety with a small leverage, it is even safer to trade in spot not in future trading.

[Fuso.hp]

2x leverage is more risky but I used 20x leverage hoping for extra profit. It was a big wrong decision for me at the time because I lost a lot of money due to it several times. With such a high risk I would be satisfied with a small profit but when losses occurred I would remind myself how much I was risking my capital for a small profit. After losing huge amounts several times I learned that I shouldn't be trading futures with such high risk. When I didn't have the money to trade I figured spot trading would make a small profit if needed but I would never get involved in futures trading again. There may be temporary loss of money in spot trading but there is no possibility of total loss of money and since then I have given more importance to spot trading.

[God bless u]

Yes, you are absolutely right, because the more leverage you give, the more chances of getting credit in your loan, the less leverage you have, the safe your money will be. The money will Safe from being liquidate,

So I will also prefer that the person who has most of the leverage should keep it low, then whatever we have, we will continue our trading with safety and our profit will be confirm instead of loss from liquidation

[Twentyonepaylots]

Leverage is not important, risk management is important.

It makes no sense to talk about leverage in a context where trade-risk in relation to your account size and position-size is not mentioned.

Agree, totally non-sense if the size and risk is not being considered. If you this post by Vitalik, 'don't use greater than 2x leverage' if you got $30 in your account would you even dare to follow him?

Once you have calculated those two parameters, then can you evaluate if your leverage is too high.

I'm not sure how to calculate to know if your leverage is high, too high, too low, or just right enough. I guess this is pretty subjective for one to know.

Leverage is just a tool, nothing more.

Hmm, I guess yeah, that's just what it is. It is a tool we need to know how to use, and use wisely.

[2Pizza410000BTC]

I am referring to Vitalik Buterin, one of the ethereum founders post on Twitter that states that people should not use more than 2x leverage.

Don't use >2x leverage. Just don't.

It is one of the things he listed as a financial advice. As a trader, what do you think about it? We set some money aside for trading and as for me I still use up to 2.5x leverage for bitcoin to open a long position.

I think using this low leverage is good for traders. But investors should not use leverage at all. Investors should even supposed not to leave coins on exchanges but moved the coins to a noncustodial wallet.

This is also not applicable to many coins that are very volatile in a way that 1x leverage can even lead to liquidation of asset. See what happened to TRB recently that fall from almost $700 to $125.

In my opinion it is better to use low leverage in trading platform because with low leverage your risk of losing in trading is much less. Those who use 10x 25x 50x 75x  leverage have a higher risk of their assets. So I would always say it is better to use low leverage even if the trading platform has low profit. However, 2X can be used up to a maximum of 10X. Using more than this means increasing the risk of your assets on the trading platform.

[Bushdark]

Yes, you are absolutely right, because the more leverage you give, the more chances of getting credit in your loan, the less leverage you have, the safe your money will be. The money will Safe from being liquidate,

So I will also prefer that the person who has most of the leverage should keep it low, then whatever we have, we will continue our trading with safety and our profit will be confirm instead of loss from liquidation

There is nothing wrong with leveraging but sometimes some persons do misuse the ability for them to leverage.
Leverage is a way for us to increase the amount of funds we are using to enter the market. Once we understand the brain behind leveraging, we are not going to have problem on the right way to leverage. Many have leverage ld and have made money from the market while others had ended up in loses.

[shinratensei_]

if you only use a small leverage it is better and better to trade in spot not in futures. if you really want to enjoy a little challenge in the future it is better to use margin trading which is not a big leverage. if you are looking for safety with a small leverage, it is even safer to trade in spot not in future trading.

thats definitely what should people doing instead of always choosing future trade, spot is always the safest, if coin dump just wait it, if it increase just find right opportunity to dump. its as simple as that yet people are sticking with future trading maybe because they are used to it and maybe they want to take advantage of some small leverage which aren't gonna be giving profit but honestly even if its 2x leverage its already two time of our initial capitals so it does make sense though why people are still sticking with future trading because we can get double the profit but with double the risks.
personally i always stay with spot trading though since im already used to it also sometime we can follow some staking program when we are stuck with some loss.

In my opinion it is better to use low leverage in trading platform because with low leverage your risk of losing in trading is much less. Those who use 10x 25x 50x 75x  leverage have a higher risk of their assets. So I would always say it is better to use low leverage even if the trading platform has low profit. However, 2X can be used up to a maximum of 10X. Using more than this means increasing the risk of your assets on the trading platform.

50x and more leverage are definitely just trying to give away our money, yes the market can grow high but also remember that if the market just dipped a bit we lost our money, its as simple as that.

[snowpega]

I am referring to Vitalik Buterin, one of the ethereum founders post on Twitter that states that people should not use more than 2x leverage.

Don't use >2x leverage. Just don't.

It is one of the things he listed as a financial advice. As a trader, what do you think about it? We set some money aside for trading and as for me I still use up to 2.5x leverage for bitcoin to open a long position.

I think using this low leverage is good for traders. But investors should not use leverage at all. Investors should even supposed not to leave coins on exchanges but moved the coins to a noncustodial wallet.

Dear instead of that I would say those who are beginner traders.. trading on leverage is a big risk to their funds besides that they should start trading in spot and can learn easily because it has less risk in losing funds although the risk is also included here.

...... See what happened to TRB recently that fall from almost $700 to $125.

well, haha I also noticed this big trap of TRB where the people who short it at the lower prices have to face big lose, and on the other hand people who long it at higher prices have to face big lose as well 

[Hamza2424]

Dear instead of that I would say those who are beginner traders.. trading on leverage is a big risk to their funds besides that they should start trading in spot and can learn easily because it has less risk in losing funds although the risk is also included here.

Hmm, still some people prefer high leverage for fast returns. TBH this greed sucks and I've encountered many people who gambled their money on high leverage and in the end as always lost all of them.

well, haha I also noticed this big trap of TRB where the people who short it at the lower prices have to face big lose, and on the other hand people who long it at higher prices have to face big lose as well 

Hmm, Hype waves suck haha.. Again, natural trading and risk management always give a safe playing field. In the end of the day over-hyped and over-valued projects should not be considered as reliable for the trading not even on the short timeframe.

[AakZaki]

This is what I keep telling anyone who trades in futures. You really have to use leverage wisely and don't use high leverage. The aim is to get bigger profits, but the risk of loss is also bigger. In my opinion, using 2x leverage is enough. Sometimes those who are new to futures use higher leverage and end up being liquidated. Apart from that, management needs to be done correctly, without management trading will not go according to plan.

[TookDk]

Once you have calculated those two parameters, then can you evaluate if your leverage is too high.

I'm not sure how to calculate to know if your leverage is high, too high, too low, or just right enough. I guess this is pretty subjective for one to know.

Its not subjective at all.

Your leverage is too high if you do not have enough margin to cover your risk, plus a head room to account for the liquidation mechanism, which trigger before your margin is at zero.
That,s it. There is no such thing as too low leverage or "just right".

Leverage is one of the most misunderstood concepts in trading. I could explain in more details about how you do prober risk management, I just feel no one here would really care, it is obvious that this thread is more about making post in signature campaigns that actually having a discussion about trading.

[Saint-loup]

It's risky for all volatile assets actually, not for cryptos only, penny stocks could also be dangerous. But it is what it is, it's not more risky than a bet at a casino or a bookie. With a good money management you shouldn't lose much funds. So saying it's very dangerous and you should never use it is a bit overkill IMO, if you're not a beginner you will take care to not engage too much funds in such trades in order to preserve your bankroll.

[Derivatives888]

I am referring to Vitalik Buterin, one of the ethereum founders post on Twitter that states that people should not use more than 2x leverage.

Don't use >2x leverage. Just don't.

It is one of the things he listed as a financial advice. As a trader, what do you think about it? We set some money aside for trading and as for me I still use up to 2.5x leverage for bitcoin to open a long position.

I think using this low leverage is good for traders. But investors should not use leverage at all. Investors should even supposed not to leave coins on exchanges but moved the coins to a noncustodial wallet.

This is also not applicable to many coins that are very volatile in a way that 1x leverage can even lead to liquidation of asset. See what happened to TRB recently that fall from almost $700 to $125.

It depends on how much money you have in your account.
When there is 50k you can even do a 1k trade with 50x leverage. It is al about the margin and not the leverage!

[JeffBrad12]

This is what I keep telling anyone who trades in futures. You really have to use leverage wisely and don't use high leverage. The aim is to get bigger profits, but the risk of loss is also bigger. In my opinion, using 2x leverage is enough. Sometimes those who are new to futures use higher leverage and end up being liquidated. Apart from that, management needs to be done correctly, without management trading will not go according to plan.

there's reason why these high leverages exist in the first place though its to give bigger opportunity for those that are brave enough to bet on their decision and I think thats fair, if anyone is losing big with future thats because they are reckless not knowing how to trade, these leverage are good and I personally have made quite good amount of money from these leverages.
its just that some random newbie trying to make it big using leverage that is over their capability and then go around venting is just really try to give bad reputation for this high leverage mechanism but overall i think there are many people that take advantage of this feature still.
imagine with $1 you can just 100x leverage since you are so sure that the coin is gonna be rising anyway and then you are investing as if you invested $100 but with only $1 i think thats fair enough.
but of course the risk is also higher but overall its fair game to be honest.

[God bless u]

Yes, you are absolutely right, because the more leverage you give, the more chances of getting credit in your loan, the less leverage you have, the safe your money will be. The money will Safe from being liquidate,

So I will also prefer that the person who has most of the leverage should keep it low, then whatever we have, we will continue our trading with safety and our profit will be confirm instead of loss from liquidation

There is nothing wrong with leveraging but sometimes some persons do misuse the ability for them to leverage.
Leverage is a way for us to increase the amount of funds we are using to enter the market. Once we understand the brain behind leveraging, we are not going to have problem on the right way to leverage. Many have leverage ld and have made money from the market while others had ended up in loses.

We can increase when we have sufficient amount available. If the budget we have is low, How can we protect ourselves from liquidation? 

That trading should be done by those who have a sufficient amount of budget they can reduce or increase the leverage and can bear this loss from time to time to invest in it in order to save themselves from being liquidated and to save their entire budget from being liquiditation.