The use of high leverage. Traders experience.

[tvplus006]

Yeah that's the catch I guess. If suddenly the price dumped the collateral will be liquidated. Overall leverage is always bad, too much risk involved.
The last time I used such strategy is when shorting some altcoins like Ethereum but I always manage my LTV to be healthy. Some lending defi out there don't give too much toleration for bad LTV.

In a bull market, this strategy makes a big profit, but in a bear market, there is a high probability that you will have to lose part of the deposit. The risk will be minimal if altcoins are occupied, which in the event of a drop in the price of bitcoin, the price will also decrease, and the altcoins obtained in this way could be staked at a higher interest rate.

[Jaweria parveen]

Just buy real bitcoin without all those leverage and if you really want to leverage because you want to make additional profit, have you thought of using your bitcoin as collateral to buy more? I think the risk is lower this way.

High leverage only make sense if you just want to waste your money hoping to hit the jackpot but completely fine if your money vaporized because thats what happens 99% fo time.

High risk but quite worth it with the potential profit, so I think that's why many people try it and hope for the jackpot, including myself by using high leverage, which results in significant losses, but I have never been disappointed by it; rather, it becomes an experience and a lesson.

And regarding your advice, I completely agree, it's better to buy Bitcoin and hold it, this is for long-term investment.

Such hope always shows new dreams at the beginning and the bigger the leverage, the bigger the loss and profit. I also accept that it is more risky but the big investors mostly take such paths and people copy them and lose their money by applying leverage. Although it is very unlikely that money can be earned from Bitcoin in this way because the graph gives minute by minute news due to which we make it down instead of up and we lose our money by applying big leverage in the cycle of greed. If we have to take this path, then we should apply small leverage which is less profitable but also less harmful. In my opinion, 10x leverage is enough which will gradually make it clear how to earn money easily with 100x leverage.

[el kaka22]

15 to 2 is a great number, wish it was the same result everywhere but it is not that common because leverage trading on futures is very often done by people who are quite newbies.

They realize they can put 1 and get 10 if they are lucky and they keep doing it to get out of the rat race, they see this as a way out and a gambling method basically. That's the problem, trading shouldn't be like gambling, there is no reason why any of us should lose, we could all make money, but some people use trading methods such as futures trading like it is gambling and risk it. They may lose, but they do not see it as a loss from trading where you can learn and be better, they see it like gambling and unlucky and keep trying again.

[moneystery]

I've had such a bad experience with high leverage, so I stopped using it for trading because while the potential profits can be high, it also carries the risk of liquidation.
And I think most people here share my opinion: using high leverage is very risky, and not all traders can handle it, as one mistake can wipe out your entire account balance. So, it's better to trade with low leverage, though the profits are smaller, you can stay in the market longer.

[Hypnosis00]

Let's be honest, using of high leverage is only good when you are making profits because especially if you doubled or tripled your goal profits, but once losing starts to arise, it becomes a threat to your trading capital that anytime you will end up trading without nothing to gain, without nothing left in your pocket.

This is the reason why I stopped using high leverage. Yes, it brings me to the peak of my excitement when I'm in profits, but it totally leads me to anxiety and depression when you can no longer manage your trades well.