The leverage effect in crypto: my descent into hell and what I learned from it

I'm going to tell you how leverage almost ruined me, but also how some use it to get rich. It's a double-edged sword that I've handled without gloves…

The Mirage of Easy Money

Leverage? It's that enticing promise that platforms sell you: borrowing to multiply your positions and potential gains. I believed it, oh how I believed it!

Imagine: with only €100, you control a position of €1000 thanks to a x10 leverage. If Bitcoin rises by 10%, you don't earn €10 but €100! Magical, right?

What they don't tell you loudly enough is that if the market drops by 10%, you lose EVERYTHING. And believe me, these markets are merciless roller coasters.

My personal madness with leverage

I started with a small 5x on Ethereum. In the first few days, I was euphoric. I could already see myself buying my Tesla. Then the market turned…

In less than 3 hours, I watched my margin melt away like snow in the sun. The platform liquidated me mercilessly. That feeling of helplessness when you see your money disappear is indescribable.

The brutal reality behind leverage

These platforms love to offer x50, x100, or even more! Why? Because they KNOW that most traders will get liquidated. It's their business model! They feast on our liquidations while we dream of quick riches.

The volatility of cryptos is already demonic. Adding leverage is like pouring gasoline on a fire.

Who does it really work for?

For those who:

• REALLY understand the markets ( not you who are reading this article hoping to get rich )
• Have a discipline of iron and risk management strategies
• Only use a fraction of their capital with reasonable leverage

For others? It's just a form of sophisticated gambling.

The traps we don't see

Slippage, financing fees, the gaps between buy and sell prices… All these little details that gnaw at your positions even when the market is not moving.

I have seen perfectly calculated positions get liquidated because of wicks (these price spikes that last a few seconds) designed to take your money.

Leverage is a powerful tool, but it requires a mastery that few possess. It's like a chainsaw: useful for lumberjacks, deadly for novices.

So if you still want to try it, start microscopically small, with a minimal leverage, and above all: only use the money that you can afford to lose without crying.

But honestly? It's better to invest simply, patiently. Time is the only leverage that won't betray you.

#Trading #CryptoDanger

Warning: I lost more than I wanted to admit. Don't do as I did.