Hope you did not use high leverage?

[Zaguru12]

I usually don't prefer futures trading; I can't accept this kind of loss. For newbies, leverage trading is more dangerous. When they lose a big amount of funds, then they might lose interest in cryptocurrency and Bitcoin. Those who are highly skilled and experienced and can afford to lose might do leverage trading.

I can tell you for fact that this is the major reason why most people call cryptocurrency a scam, trading and investing on shit coins for quick gains is the reason why they are actually people still calling cryptocurrency scams. You cannot see any holder or even profitable trader calling cryptocurrency a scam or even quitting.

5 to 6x leverage is not high leverage to me but increasing it is where high leverage begin. There are people that are using 10, 25, 50, 100, 200, 500 leverage, these are the high leverage that some people use. These people are not traders but they are thinking they are traders, not knowing they are gambers.

Yes the leverage below 10x is actually regarded as not so high leverage but seriously it depends on the coin you’re actually trading, a coin like bitcoin I would say it’s actually a reasonable leverage although there are still periods that bitcoin is extremely volatile like we say this week. But if the coin in question is actually all this alt coins, 5x leverage is still considered high in my opinion and once a trader is trading it I usually advice very tight stop loss and most especially not going against the trend because this is where people gamble in trading

[Karl_3000]

Yes the leverage below 10x is actually regarded as not so high leverage but seriously it depends on the coin you’re actually trading, a coin like bitcoin I would say it’s actually a reasonable leverage although there are still periods that bitcoin is extremely volatile like we say this week. But if the coin in question is actually all this alt coins, 5x leverage is still considered high in my opinion and once a trader is trading it I usually advice very tight stop loss and most especially not going against the trend because this is where people gamble in trading

I was referring to 5x leverage but maybe 6x also. Any leverage that is more than 5x is getting too high for bitcoin. I was also only talking about bitcoin which is not highly volatile like many shit coins.

If it is a shit coins, there are times that 1x leverage is even too high. You can see the coins pumped 5x or more within hours during bull run. I cannot trade coins like that, but I prefer to hold most of the time.

[Faisal2202]

I am safe even during this dump since I haven't been doing future trading. The market seems to have very bad conditions right now, I claim to be safe because I am a holder and spot trader. I know the market will recover soon, and my holding will recover too as well. But if someone lost in leveraged trading during this bear market, their funds won't be recovered anyway. I have noticed a big amount of longs have been liquidated. Means a lot of people lost their funds.

I usually don't prefer futures trading.

Your confidence is really remarkable because I am also a holder and have been accumulating for some time now. I accumulated the last time at an average of $35k but made good profit. When you have already spent too much time in the market like I think you have, your confidence builds like this. I mean you must be in huge loss right now like I am, and yesterday a friend of mine made me relive my loss again haha. Normally when I am not talking about it to someone I am doing fine, but when someone mentions their losses, because it is a thing here that you show off how much you have lost haha, you might be surprised but even others are not involved in crypto but we flaunt our loss like it is a good thing, and mine was bigger than theirs if they did not hold onto some.

Anyway, your confidence is more, and you know you are not in loss even if technically you are right now. I also don't do futures because that's not good for me as I also tried.

[DPHOR]

I hope people understand the reason for this thread.

To be frank Many may not be that prepared for this sudden drop but only those who are that sensitive enough to know when the market is going against their trades and even though the market could be that hard to predict, they could easily exit the market to make sure they didn't lose that much while trade because they were expecting the market to break above 78k but ended up going the opposite. Truly, we can't actually predict the market.

[ZAINmalik75]

Hope you did not use high leverage during this fall that many of us predicted?

I am referring to those that have gone on long position.

Or you know that you should go short? But using high leverage is not good, you can just be lucky this time.

Low leverage can still encourage averaging, but martingale is very bad. Starting a trade with 0.2x leverage is very good.

I also hope people know about perpetual and future trading? There are long term position holders.

I hope people understand the reason for this thread.

First of all, I don't think you can use 0.2x leverage because the minimum is 1x, because from all the exchange platforms that I'ved used so far, I have never seen a single one of them offering futures trading a leverage option below 1x, and when you use 1x leverage, you are basically better off making a spot trade instead of doing futures if you are going for a long position, because the average profit you can get from a 1x leverage will probably match a position you open in the spot market.

Anyway, using high leverage is obviously not a good idea if you are not experienced in the market, and, if you are not using proper stop-loss with your position, because if you are using stop-loss, you wouldn't be worried even if the market goes too deep against you since your position will basically get closed as soon as the stop-loss is hit, but if there is no stop-loss on a high-leveraged position, you will surely get liquidated sooner or later if the market keeps going and going in the opposite direction.

[juttsab@]

Anyone who used high leveraged in long position during recent drop has completely lost all his capital by now. The liquidation doesn't care about our position when market dumps. Even if a trader made profit from this dump on short using leverage it is terrible as well . Eventually, the market will backfire in the opposite direction and liquidate whole position. The most important part of this post is martingale strategy. It's a financial suicide doubling down the average of entry price on a losing position. Using low leverage like gives us a way to survive in the market. If we  hold on a low-leverage losing position open forever, the continuous funding fees will slowly bleed your account dry anyway.

[EarnOnVictor]

I can only imagine how the trader with a high leverage plus no proper account management would have been roasted by the market by now. Trading with the high leverage is not necessarily bad, but the absence of proper planning in case the decision goes south.

I told people that trading is not good, the best is to hold. Almost a billion dollars was liquidated recently.

Nothing is wrong with your advice and I'd advised countless of people about it myself. But trading is not so bad too, expect that people are terrible at. As investing is the better choice with higher degree of peace of mind, those who trade don't know it in most cases. They want to make the profits that should be made in a whole year in a single day.

[Oshosondy]

To be frank Many may not be that prepared for this sudden drop but only those who are that sensitive enough to know when the market is going against their trades and even though the market could be that hard to predict, they could easily exit the market to make sure they didn't lose that much while trade because they were expecting the market to break above 78k but ended up going the opposite. Truly, we can't actually predict the market.

This is easy to say, but it is hard to do. Many people can use stop loss, but I prefer to use low leverage.

First of all, I don't think you can use 0.2x leverage because the minimum is 1x

You can use 0.2x leverage. If you have $1000 for trading which is on trading account, you can use $200 to trade, that means 0.2 leverage.

When I was using OKX, you can go as low as 0.1x leverage, but other exchanges do not allow it, you have to be the one that will calculate it but the calculation is easy and straightforward.

[LastKiss]

To be frank Many may not be that prepared for this sudden drop but only those who are that sensitive enough to know when the market is going against their trades and even though the market could be that hard to predict, they could easily exit the market to make sure they didn't lose that much while trade because they were expecting the market to break above 78k but ended up going the opposite. Truly, we can't actually predict the market.

This is easy to say, but it is hard to do. Many people can use stop loss, but I prefer to use low leverage.

I'm pretty sure many traders tried to catch the falling knife during Bitcoin recent drop, they probably opened long positions at $73k, $68k, $65k and so on, probably more downside may still be coming but a few days of relief wouldn't be bad for crypto especially Bitcoin.

I agree that not using stop loss but using low leverage can help prevent positions from being stopped out while the price keeps falling. However, keep in mind that even low leverage bring the risk of liquidation because I experienced that myself. That's why I'm avoiding high leverage during a bear market, the 10/10 event last year definitely taught me to stay cautious.

[DPHOR]

To be frank Many may not be that prepared for this sudden drop but only those who are that sensitive enough to know when the market is going against their trades and even though the market could be that hard to predict, they could easily exit the market to make sure they didn't lose that much while trade because they were expecting the market to break above 78k but ended up going the opposite. Truly, we can't actually predict the market.

This is easy to say, but it is hard to do. Many people can use stop loss, but I prefer to use low leverage.

Using stop lose would help them the more, but of course using lower leverage helps mostly which could reduce how quickly they should be getting liquidated. While those who uses stop loss are those who trading on the spots market which usually helps them to take profits when they reaches their targets points, and of course the stop lose also help them limit how lower they could be losing their trades.

[michellee]

Using high leverage in trading needs more observation before deciding as it can drain your money fast. If you can't analyze better, you need to stay away from high leverage.

Even if you sure the market will follow according your analysis, you should not using high leverage. If you want to use high leverage, you should know the consequences and accept whatever happens. It gives bigger risks if you still do that so prepare for anything.

[Emitdama]

Hope you did not use high leverage during this fall that many of us predicted?

I can only imagine how the trader with a high leverage plus no proper account management would have been roasted by the market by now. Trading with the high leverage is not necessarily bad, but the absence of proper planning in case the decision goes south.

That is if they have betted against the current wave of the market. But for those who agree that the market will go as is, then they also benefited greatly with it due to that high leverage they have added.

People can use a high leverage because they think they are in control of the situation or have done some things like a proper account management. This type of trade is advanced one. Once things go south, there is nothing that we can do here in order to recover. But a person that has a proper account management may be professional enough to not get carried away by their emotion and avenge their trades by doing it again. It is risky and can only lead for more losses.

[Redudletech]

I think even if you make a lot of these threads giving reminder to them that they should leverage low.
They are not going to stop doing that. And even they're already liquidated for so many times, that won't be enough for them to stay low.
Because high leverage is addictive for how it's making someone a lot of money when they win their trades.
I have learnt the lesson behind it and that's why I am avoiding to do high leverage. But no one can stop them if they want to continue it.

I disagree. While high leverage can be addictive, education and consistent reminders do make a difference. Many traders only change after repeatedly hearing risk-management principles and seeing the consequences of poor decisions. Not everyone who uses high leverage remains trapped by it; some learn, adapt, and become more disciplined over time. Saying no one can stop them overlooks the role of mentorship, experience, and personal growth. Traders ultimately make their own choices, but guidance and awareness can significantly influence those choices and help prevent costly mistakes.

[Redudletech]

I get the point of this thread, and I agree that many traders underestimate the danger of high leverage. A single bad move can wipe out weeks or months of gains, which is why risk management matters more than chasing huge profits.

That said, I don't think leverage itself is the enemy. High leverage in the hands of a disciplined trader can be manageable, while low leverage won't save someone who keeps averaging down blindly or refuses to cut losses.

The real issue isn't whether you use high or low leverage it's whether you understand the risks and have a plan. This thread serves as a good reminder that staying in the market is more important than trying to get rich from one trade.