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.

[beerlover]

High leverage is a not a way to make money on the long term, it would just eat up all that it makes you on the short term. The sensitivity of loss is too high to make it worth anything. Yes, you could use a very small amount of money to make a lot of money if you are right, but if you are wrong even just a bit then you are going to lose it all and there cannot be any convincing justification for why you should do this at all.

I think it's clear that people make the mistake that they are dealing with such a sensitive loss chance with even being wrong 1-2% could make you lose all of your capital. If your prime motto would be protecting your capital rather than risking in every trade then you will never go for availing leverage. In my opinion, protecting capital would be more important rather than going for profit making.

[dwyane36]

High leverage is a not a way to make money on the long term, it would just eat up all that it makes you on the short term. The sensitivity of loss is too high to make it worth anything. Yes, you could use a very small amount of money to make a lot of money if you are right, but if you are wrong even just a bit then you are going to lose it all and there cannot be any convincing justification for why you should do this at all.

I think it's clear that people make the mistake that they are dealing with such a sensitive loss chance with even being wrong 1-2% could make you lose all of your capital. If your prime motto would be protecting your capital rather than risking in every trade then you will never go for availing leverage. In my opinion, protecting capital would be more important rather than going for profit making.

The only case where I think high leverage can be justified is when a trader is scalping and has automated the process as much as possible, particularly the closing of positions. Obviously, if you trade manually, you won't even have time to react to sharp price movements during periods of high volatility.
But this is more of a theory; at least, I haven't heard of a single successful trader who would use high leverage for scalping and be able to make money on it in the long run.

[barbara44]

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.

Yes mate. Bitcoin alone can already have this feature of trading due to its volatility rates. And if we are not contented yet with it but still want to earn more, then we can just add more wood in the fire or by buying more Bitcoin. Bitcoin is more established but I think on trading, it was also the stable coins are mainly the ones that are accepted as a collateral.

It could be because like you said, BTC as a collateral is less risky and the exchange owners can only earn less with it. We trade to possibly earn, so using high leverage and increase the chance to lose, actually don't make sense. Maybe we can just play gambling at the casino instead. Now that is more senseful .

[Finestream]

One thing you must know about using a higher leverage is that you could get liquidated so easily when the market goes against your direction, but the higher amount you used the higher profits you could gain as well while trading. Same thing is applicable with using a smaller or lower leverage and thus when they goes against your direct you could barely lose huge amounts while trading but all remains the same because they all involved losing one capital the difference is higher volatility or lower risky while trading.

Using high leverage is good and profitable when the market favors your position, but even small market fluctuations against your position can trigger forced liquidation. This is why using high leverage demands high caution, otherwise with just a blink of an eye, it could lead a total wipeout of your account.

If you can manage the high risk, better stay away from using leverage. Yes, it can give us great profits and high satisfaction when the market is positively aligned with our position, but then again, it could also lead to total capital loss when the opposite happens.

[dansus021]

Traders experience. Other than forex here in crypto I actually experience use of leverage like 500x you guys might think Im lie. 



1148% and looks delicious is it. I got around 160 USD in less than an hour but there is catch after it I loss more than 200 USD hahahahha

what Im trying to say here is never ever use HIGH leverage when you use high leverage ex. 500x like I did it become a pure gambling there is not a techinal involved here basically 1% down you are dead. Now im using max is x15 tho some exchange consider above x9 is high

[jaberwock]

Leverage is not the type of trading I like, nor capable of doing. I respect people who make money from it, and I know there are some, and I also know that most people who do leverage end up losing money, and if I continued then I would be one of those who lost money instead.

Long term holding is the place I make most of my money, as long as I hold and do DCA, I get great results, and trading on spot is the second place I do fine, I do not make that much profit, it's tiny but at least it's green. Leverage is far away from where I want to be.

[Royal Cap]

If you can manage the high risk, better stay away from using leverage. Yes, it can give us great profits and high satisfaction when the market is positively aligned with our position, but then again, it could also lead to total capital loss when the opposite happens.

In my opinion leverage is like a double edged sword, If the market goes in your direction, you can make really good profits very quickly. But the reality is that the market does not always go according to our plans. If it goes in the opposite direction, the entire balance can be liquidated, I personally think that it is much safer for new or intermediate traders to use low leverage. Because then even if the market moves a little, the trade has a chance to survive. Many times, people take 50x or 100x leverage in the hope of big profits, but the account is blown away by a small move.

[Doll2233]

Leverage is not the type of trading I like, nor capable of doing. I respect people who make money from it, and I know there are some, and I also know that most people who do leverage end up losing money, and if I continued then I would be one of those who lost money instead.

Long term holding is the place I make most of my money, as long as I hold and do DCA, I get great results, and trading on spot is the second place I do fine, I do not make that much profit, it's tiny but at least it's green. Leverage is far away from where I want to be.

I think trading through leverage is very risky because you will lose more and more money and you can adjust your buying asset without any leverage by trading in spot but most of the people want to gain more money in short time which is not possible at that time if you have no financial knowledge of market and you have no working experience. If you will work for money then you will be about to get high profit in a future but desire is main thing which is needed at the start. You should work smartly but should not invest with more leverage which can dig hell for you and always try to take calculated risk and you should measure all the path which you will follow in trading to be trading expert who will inspire others to come in trading

[Issa56]

Yes, we know that high leverage is not good, many traders are advising people not to use high leverage. I am among the traders because I have very bad trading experience with high leverage. Let us see traders opinions on this thread to know if they make it after a long period of time with the use of high leverage or they later decided to stop the use of high leverage and trade with low leverage.

I assume 100% song us will choose No, I stop using high leverage butnlet us see if I am wrong.

Please I need only real traders to vote and post.

I have made use of high leverage in the past which made me lose much money in future trading, and it really discouraged me from participating in future trading. When I was participating in future trading, I was just so desperate to make huge amount of money, so instead of making money, I was losing money but at the end I was able to control myself and I had to stop future trading. Honest I don’t always encourage people to make use of high leverage whenever they are trading, always use low leverage, always manage your risk whenever you are trading.

[Bd officer]

Actually, I personally don't like futures/gambling trading, but greed forced me to do futures trading. I have traded using leverage up to 70x. However, I have had both profits and losses in futures trading but my losses were higher. The last trade I made was with $70, where I lost all my money using high leverage. I have stayed away from futures trading since then and focused more on accumulating BTC. So my advice for beginners would be, stay away from futures trading, if you want to do it then use low leverage.

[Luke3bird]

Actually, I personally don't like futures/gambling trading, but greed forced me to do futures trading. I have traded using leverage up to 70x. However, I have had both profits and losses in futures trading but my losses were higher. The last trade I made was with $70, where I lost all my money using high leverage. I have stayed away from futures trading since then and focused more on accumulating BTC. So my advice for beginners would be, stay away from futures trading, if you want to do it then use low leverage.

Using leverage as 70x means your leveraged trading positions will be liquidated when price has changes about 1.5% opposite than your open position. It's very risky in this volatile market and by trading with such very high leverage, you will have to be very active with your entries and exits, always set up stop loss order or stop limit order, and perhaps will have to keep watching the chart and following news in this market.

All these things are too much, consumes times while its trading result would be not too good in long term.

[LogitechMouse]

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Let us see traders opinions on this thread to know if they make it after a long period of time with the use of high leverage or they later decided to stop the use of high leverage and trade with low leverage.

I assume 100% song us will choose No, I stop using high leverage butnlet us see if I am wrong.

Please I need only real traders to vote and post.

No I'm not using it anymore, and the last time that I used a high leverage - I got liquidated.

I can still remember it when I lost half of my capital on a single position. I tried to recover it, entered a position again using a very high leverage (around x100), and went all-in on it. Just a few moves against me, and I can get liquidated, and that's what happened to me. I got liquidated within just a few minutes, and that was my worst decision that I've made on my trading journey. Well, that was over a year ago, and since then, I'm not using high leverage anymore.

Around x10 - x20 on both Bitcoin and Tether Gold. That's the leverage that I'm using, and for some that might still be high, but I can manage my risks now better than how I manage it a few years ago so no worries. I've seen some traders though that are using a very high leverage, sometimes max leverage, but they're only allocating a small amount of margin to mitigate their losses. It's more of a scalping than swing trading if you will ask me. Most of the people who are using high or max leverage are scalpers who are looking for quick buckos.

Anyway, can I put myself as a "real trader" since I'm trading, but unprofitable still?

[JeffBrad12]

High leverage make sense in a lot of case if you're using it moderately. I use leverage a lot but not that kind of leverage where multiplication is 10x - 50x. I do use 2x - 5x.

If you think about it, longing bitcoin at current price with 2x leverage, to be liquidated you need the bitcoin's price to be half of it, when you think about it the chance is pretty low for bitcoin to suddenly go below 35k so 2x is pretty safe.
That's the kind of leverage i'm using. Most of people used it wrong and it shows.

[toryn388]

Yes, we know that high leverage is not good, many traders are advising people not to use high leverage. I am among the traders because I have very bad trading experience with high leverage. Let us see traders opinions on this thread to know if they make it after a long period of time with the use of high leverage or they later decided to stop the use of high leverage and trade with low leverage.

I assume 100% song us will choose No, I stop using high leverage butnlet us see if I am wrong.

Please I need only real traders to vote and post.

Most traders I know eventually reduce leverage after getting burned a few times. High leverage can work for short periods but the margin for error becomes tiny and one bad move wipes weeks of gains. I had much better results once I dropped leverage and focused more on position size and patience.