🚨 Attention Traders! 🚨
**Understanding the Risks of Leverage in Crypto Trading**
🔴 Leverage: Proceed with Caution:
- If you're new to crypto or even with a few years of experience, think twice about using leverage.
- Leverage allows trading with borrowed funds (e.g., trading $500 as if it were $5000 with 10X leverage).
- A small price drop can trigger liquidations, causing a cascade of sell orders and pushing prices down further.
🔴 Impact on Market Stability:
- Imagine thousands of traders using high leverage on assets like ETH. A modest drop can lead to massive liquidations and flash crashes.
- Flash crashes, where prices plummet rapidly, are a real risk in leveraged trading, akin to traditional finance crises.
🔴 Stay Safe, Trade Smart:
- Avoid excessive leverage to navigate volatile markets effectively.
- Protect your investments by understanding the risks and trading responsibly.
Stay informed and trade wisely
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