The crypto market's latest shakeout has left many traders reeling. If you're among those sidelined by the flush, you're probably watching the market pump again and wondering:
Should I leverage, or just stick to spot and chill? Let's break it down.
Leverage vs. Spot: The Tug of War in Crypto Trading
The recent flush didn't just shake out weak hands—it obliterated over-leveraged positions. In fact, we just witnessed the biggest leverage wipe in history, with over $1.47 billion of capital liquidated in a single day.
Why Leverage Is a Double-Edged Sword
Leverage is tempting—it amplifies your potential gains but also magnifies your risks. Unfortunately, most traders don't fully grasp how quickly the tides can turn. Operators thrive on over-leveraged positions, and they will liquidate you without hesitation.
Spot Trading: The ‘Chill’ Approach to Building Wealth
Spot trading may lack the thrill of leverage, but it's where consistency wins. By employing strategies like dollar-cost averaging (DCA), you can ride out market volatility without losing sleep.
Key Survival Rules for the Crypto Jungle
1. Take Profits Early and Often: The market doesn't reward greed. You must take partial profits on the way up, please understand market makers and operators need to make money too if you keep holding on to your trade sooner or later you will be liquidated.
2. Stop Chasing 50x Dreams: Avoid over-leveraging.Many traders when the price tanks take over leverage and enter but market makers set that trap for you and you over leverage and get liquidated.
3. Make DCA Your Best Friend: In spot trading, focus on consistent growth. Don’t just blindly Dca into any coin make sure its a strong one or ask me.
4.TAKE PROFITS : Taking profits is applicable for spot too, consider 4 year cycle set targets and take profit, if you DCA in and DCA out too . No one has every caught the bottom or the top so trust your targets.
Final Thoughts: Don’t Let the Market Manipulate You
Crypto markets are a battlefield. The recent flush was proof of how brutal they can be for those chasing quick wins. Whether you're leveraging or sticking to spot, the same principle applies: stay disciplined, manage risk, and don't get greedy. The market is back and pumping—make sure you're on the right side this time.