Leverage, contracts, simply put, are amplifiers that help you use your money more cleverly, allowing you to seize opportunities when risks are low and returns are high. But you need to understand that playing with leverage is not without risks, especially when dealing with mainstream assets like BTC, SOL, and those altcoins; the strategies must be vastly different.
For example, if you are optimistic about SOL, it is different from being optimistic about a small cryptocurrency with a market cap of only 500 million dollars; on the surface, they are both coins, but in reality, one is steady and reliable, while the other is risky. Many people naively can't distinguish between the risk levels of these two, diving in headfirst, and the results can be imagined.
For altcoins, do not exceed 10x leverage. These altcoins fluctuate like a roller coaster, and if you're not careful, you can get thrown off. Suppose you have 100,000 dollars, converted into SOL as margin, then my long position in altcoins is at most also 100,000 dollars. This way, even if the market goes crazy, I won't capsize.
As for mainstream coins like BTC and SOL, you can be a bit bolder, with leverage of up to 20x. Altcoins can fluctuate several points in a minute; how can you play with 20x leverage?
In short, when playing with leverage, the most important thing is to be aware of your own situation, know your limits, and not let temporary greed cloud your judgment.