Leverage – Don't Let It Turn from a Tool into a Weapon | Honest Advice from a Long-Time Player

Using leverage correctly makes you a master. Being controlled by leverage – you are just a “paying the tuition fee.” In the crypto market, there is no concept of good or bad leverage. What determines everything is who is in the driver’s seat. This article does not encourage you to use leverage but helps you understand its nature, risks, and how to survive long-term if you must use it. What Is Leverage? Understand It Right From the Start Simply put, leverage is borrowing additional capital to trade. For example: You have 10,000 USDT with 5x leverage → you are trading with 50,000 USDT When the market: Goes up 10% → profit based on 50,000 → you gain 50% of your capital Goes down 20% → your account completely vaporizes In traditional markets, which are already dangerous, crypto – where daily volatility of 10–20% is normal – leverage is more like an stimulant than a financial tool. Leverage does not generate new profits; it only amplifies the results of your decisions: Correct decision → quick profit Wrong decision → quick death The Real Issue Is Not the Market, But the Person Leverage has an extremely dangerous characteristic: 👉 It amplifies the worst instincts of human nature. A little gain → greed Price swings → fear Contradicting expectations → stubbornness, refusing to cut losses Many people: Start with low leverage Make a few winning trades Gradually increase leverage because “they understand the market” And get wiped out in just one candle Leverage doesn’t kill you immediately. 👉 It gives you the feeling of being skilled before taking everything away. Low Leverage – The First Condition to Survive A seasoned trader once said a quote I remember forever: “Newcomers using leverage, their first goal is not to make money – but to survive.” In crypto: BTC fluctuates 8–10%/day as normal Altcoins 20–30% are common 👉 With 10x leverage, just going against 10% can bring your account to zero. 👉 No chance to wait for a rebound, no right to make mistakes. My personal principle: Only use leverage levels that let you sleep well at night If you have to wake up to check the price → leverage is too high For most people: 1x – 3x is already enough Higher than that is trading existence for the feeling of “going big” Capital Management: One Mistake, No Way Back Using leverage to go all-in on a trade is no different from self-sabotage. Basic principles: Each trade should not exceed 10% of total capital Do not open too many positions at once For example: Account of 10,000 USDT Each trade only uses 1,000–2,000 USDT as margin Wrong → still have capital to continue Right → steady growth, no psychological pressure Don’t confuse: “Opening many trades” ≠ “diversifying risk” When the market crashes: 10 coins → crash simultaneously You don’t diversify; you just die a few minutes later Stop-Loss – The Safety Rope for Leverage Users Not setting a stop-loss = eventually your account will blow. Crypto trades 24/7. You can’t always watch the screen. Just need: A sudden pullback A surprising news A liquidity sweep → Orders without stop-loss can vanish in seconds. How to set a proper stop-loss: Based on support/resistance, not emotions Accept losing only 2–5% of total capital per order Most importantly: Once set, do not move the stop-loss. Moving the stop-loss only causes: Small losses → big losses Wrong tactics → wrong discipline Use Leverage Only When the Market Has a Trend Leverage does not generate profits in sideways markets. In sideways zones: Price rises → gets sold Price falls → gets pulled Leverage users → get worn out to death Principle: Use leverage only when there is a trend Stay out when there is no trend Don’t: Bottom fish in a downtrend Short in a strong uptrend The market doesn’t need you to be right. It only needs you to be wrong enough. Trading Psychology: Leverage Is Not a Money Printing Machine Leverage will not make you rich quickly if: You have no plan You lack discipline You can’t control emotions Before each trade, you must know clearly: Where to enter Where to cut if wrong Where to take profit if right Achieve your target → take profit. Don’t try to squeeze a few more % and lose everything. And especially: Do not borrow money to trade crypto Do not use money that affects your life Leverage is only for risk capital – losing it won’t cause you to collapse. Conclusion: Control Leverage, Don’t Let It Control You In the crypto world: Big winners overnight → very many Surviving 5–10 years → very rare The difference is not in: News Luck How high the leverage is But in: Risk management Discipline Psychology The market always offers opportunities. But only for those who are still alive. Let leverage be a tool, not a weapon. Learn to be slow, steady, and sustainable – that is the true path to long-term success in crypto.