2025-12-25 18:22:37

Those who constantly post screenshots claiming "$100 turns into $1000," I just want to shake my head when I see them. It looks exciting, but in reality, this is not a shortcut at all; rather, it's more like a touchstone—showing how deep your understanding of the market really is. I've seen too many people who made quick money using leverage, only to end up losing their principal in the end. Today, I will break down the logic of leverage in the most straightforward way, especially focusing on spot leverage trading, which is the easiest for beginners to get trapped in.

**Leverage, at its core, is not about giving away money, but about amplifying risk**

Many newcomers think that leverage is "platform subsidies," but that's not the case at all. It's more like holding a magnifying glass—you see the market correctly, and your gains double; if you see it wrong, your losses double as well.

Suppose you have a principal of $100 and open a 5x leverage position, instantly controlling $500 worth of assets. Sounds exciting, but if the price moves against you by 20%, your principal could be wiped out in a second. During Bitcoin's surge to $125,000 in October 2025, within 24 hours, 100,000 people got liquidated due to high leverage, with some losing as much as $7.37 million in a single trade. This is the cost of blindly amplifying risk.

My view is straightforward: leverage itself isn't harmful; what harms is the gambler mentality. Before truly understanding market volatility, taking it slow and making money is better than getting trapped.

**Spot leverage may seem gentle, but it’s full of hidden pitfalls**

The reason spot leverage is attractive is because of the psychological superiority of "holding assets in hand," but many people overlook two key points:

First, borrowed money must eventually be repaid. If the platform lends you $400, even if you make a profit, you must first repay the debt plus interest, and only the remaining amount goes into your pocket. If the asset drops by 20%, the platform can forcibly sell your assets to cover the debt, and your principal will still be lost.

Second, "not getting liquidated" definitely does not mean "not losing money." During the market rally last August...

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AlwaysMissingTops

· 3h ago

I’ve seen the stories of 100,000 people getting liquidated, and I really can’t hold it together anymore. --- Once again, I see those screenshots of 100x turning into 1000x. I always want to ask: why does no one post about getting liquidated? --- Leverage is like a mirror that reveals who truly understands the market and who is just gambling. --- Platforms lending you money isn’t out of kindness; interest and forced liquidation are the real traps. --- $7.37 million lost in a second—that’s what they call "quick money"? I’ll pass directly. --- Honestly, not getting liquidated doesn’t mean you’re making money. Most people simply don’t understand this logic. --- Choosing to earn slowly or to get liquidated quickly—if I had to choose, I’d definitely go slow. --- Is spot leverage more moderate than futures? Wake up, forced liquidation can still wipe out your capital. --- The gambler’s mentality is the biggest trap; leverage is just an amplifier. --- Those who think "assets are in hand" and feel secure are really too naive.

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PrivateKeyParanoia

· 3h ago

It's the same old story, I'm just wondering why some people always flaunt these kinds of screenshots. --- $7.37 million disappeared in a second, how much do you have to gamble to do that? --- Exactly, leverage is just an amplifier of your IQ. If you're smart, it doubles your gains; if you're foolish, it wipes you out directly. --- The interest on spot leverage is really tight, it's better to just stick to dollar-cost averaging. --- This article reminds me of my friend. He made money once with 5x leverage and thought he was a trading master. And then... he lost it all. --- The gambler's mentality is spot on; the market loves to harvest these kinds of people. --- The most outrageous part is when the platform forcibly liquidates your position—you can't react in time. --- I can generate ten thousand screenshots of 100 becoming 1000, but the real question is, how many actually survive?

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LiquidationWatcher

· 4h ago

After listening, I finally understand why those screenshots are all survivor bias, where 100 becomes 1000 and behind it 10,000 becomes 0.

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MemeCurator