90% of leverage traders lose money. It promises huge gains but quietly destroys accounts. Here's the warning.
Leverage lets you trade with borrowed money — 10x leverage means a ₹1,000 position controls ₹10,000. Gains multiply 10x... but so do losses. A 10% drop wipes you out.
At 10x leverage, a 10% move against you = total loss (liquidation). Crypto moves 10% in hours regularly. Most leveraged traders get liquidated within days. The house wins.
Exchanges promote leverage because they profit from your trades and liquidations. Funding fees, spreads, and liquidations all flow to them. Leverage is designed to drain you.
For 99% of investors: no leverage. Buy spot, hold, DCA. If you must use leverage, never exceed 2–3x and always use stop-losses. Spot Bitcoin already 100x'd over a decade — unleveraged.
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